A dollar sitting has just the value of the paper like material its made of, but a dollar when used to purchase it has its economic value.

But doesn’t this logic only work if people are physically stashing benjies under their mattress? Because let’s say some fat cat keeps a large bank account balance. The bank doesn’t just take the fat cat’s money and put it in a drawer. That money gets re-circulated back into the economy in the form of customer withdrawals, loans, etc.

What am I missing?