Too a point it works when factoring in efficiency. But when you deal with an ever increasing population and a finite land mass which is a resource that also effects currency where does that leave us? Every country in the world is trying to capture the resources available for their people and that pie can only be divided so many times. Raw materials extraction has its limits, as does our ability to produce food, our water supply, the air we breath, and the list goes on. We can try to be more efficient and innovative but the reality is we have a limit to money based on tangible assets and the number of times it can be divided before all feel the impact.
We need increased population to continue the growth curve with more consumers, but the resources to sustain them has a limit.