Over the last 5 years the M2 money supply has grown at a rate of 6.6% on average, the S&P 500 has grown at 13.4% on average.
Clearly inflation is a large portion of the return, but it isn't all of it. The stock market produces real return.
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** if you include re-investing dividends, you'd be at 15%-16% return on the S&P over the last 5 years.
If you look over a longer timeframe than just 5 years it gets closer. 😉
But I agree that good companies produce real returns but the index average not really over decades.