Desiring an object doesn’t depend on its inputs.  It depends entirely on the demand for that product.  Goods aren’t bought with money in circulation.  Strictly speaking, no money is in circulation.  It doesn’t float around like oxygen.  It’s always in someone’s possession.  If the price rises, it’s proportional to the demand on that product.  Input cost have little to do with that—there is an exception for inflation.

If the product sells well, the state decrees it to be produced, the nation is deprived of their prosperity.  Consumption of other goods is now restricted.  Your standard of living is lower as a result.  Just one of the many times so-called good intentions are harmful.  Producers are being forced to withhold beneficial goods from the market.  This in no way makes you better, and makes the nation worse off.

Savings is required for growth.  Not the much talked about consumption.  That’s good for the politicians in office.  Frugality is necessary for the creation of new products.  If people consumed everything today, the economy would do well today.  However, there wouldn’t be anything to consume tomorrow.  The economy would be wrecked.  That’s not how consumption works in practice, but that’s the idea.

The price of the good will depend on what the seller can receive for the money.  A high-quality money will allow him to exchange it for another good or pay debts.  A low-quality money won’t do any good.  A piece of paper with a number written on it won’t fetch anything on the market.  More zeros can be added and that won’t make a difference.  However, when the state requires you to accept that paper, things change.

Today, what are considered luxuries weren’t even imagined in the days past.  The current high levels of taxation are threatening that.  Many were in extreme poverty a few generations ago.  While they have been able to demand more and more over the years, excessive taxation will limit their choices.  It’s impossible that growth can come from taking your money.  The price they pay goes up, and their living standard goes down.

Reference

Jean Baptiste Say; A Treatise on Political Economy