Yeah, I want the assets I hold to increase in value, too, or at least not decrease.

Suppose you have some control over currency. You run a country. I'm that case, so you still want the currency to gain value compared to the alternatives?

Your choice is basically: holding currency is more profitable than building a house or running a business (or lending to those who do), or else less profitable. If you run a country, do you want houses and jobs and all that kind of thing, or do you want people to do better if they choose to hoard currency?

What about when the US dollar was backed by gold? Were there no houses or businesses?

If I need a house today I'll buy it. I might not invest in real estate or stocks as much if my currency will be worth more tomorrow but I'll still buy stuff I need or want badly enough.