If the united states can print money. Why can't they give each one of us 1 million dollars.?

Answer 1

It would be very bad fiscal policy. What this would mean is that many more dollars would be chasing the same amount of goods and services, which would mean prices would skyrocket. You might find that almost immediately the price of a gallon of gas would go from $3 to $30,000, and a loaf of bread to $20 - $25,000. A new car might cost you a few billion dollars.

The upshot of it all, apart from severe monetary dislocation, is that you would probably be worse off than before.

What might be more interesting is if every family in the US burned one $10 bill for every member of the family. Now you would have fewer dollars chasing the same amount of goods and services. Prices could be expected to drop significantly as more and more goods competed for fewer and fewer dollars. You would probably get a big cut in pay, too. Less money all around.

Answer 2

If the government gave every US citizen a million dollars, it wouldn't matter, because our money would become worthless. It has to do with the concept of inflation, which goes along with the concept of supply and demand. That is to say, the more there is of something, the cheaper it gets. I once heard a story about a woman who lived during the great depression. She had so many dollar bills that she had to carry her shopping money in a huge basket when she went to the store. She put her basket full of money down outside the store while she was inside. When she came back, her basket was stolen, but the thief had left the money lying on the ground because the basket was worth so much more than all of the money. Just a small illustration of what our lives would be like if the US mint decided to give everyone a cool million.

Answer 3

They could of course, but then 1 million dollars wouldn't be worth close to what a million dollars is worth today and you'd be blown away by the inflation.

As Milton Friedman made clear inflation is due to an oversupply of money not as TV pun-dents and Keynesian economists like to say high oil prices, a tight labor market or rising commodity prices, which are all moderated in a free market. A government that is too loose with its money supply creates inflation.

Answer 4

During 1920 and just before the war the Germans were in such a bad state you neede a wheelbarrel full of money to buy bread.
So what do you think waould happen if the government printed a million dollars for each person. our money would be worthless.

Answer 5

The government COULD do this. But it would be a bad idea. You're mistaking money for wealth. Money is not wealth. Wealth is the goods and services produced by the economy-- money is just a medium of exchange. If you increase the supply of money without increasing the supply of goods, then it would creat hyperinflation, A million dollars would be worthless. But since there are enough idiots who, in the immediate term, would think themselves rich, they would quit work to live off their "wealth" and that would result in an even SMALLER economy.

Answer 6

If a million dollars in cash was given to everyone, it would cause inflation. Money wouldn't be worth anything. Each dollar represents an amount of gold the us owns if we have more bills going around, then each bill represents a smaller amount of gold. Then if someone had 200,000 dollars saved in the bank, it would be about enough to buy a radio.

Answer 7

If everyone had a million dollars, money becomes worthless. Like someone else answered, the price of everything would go through the roof and you'd need another million dollars to buy anything.

Answer 8

It would collapse the economy.

In short, prices will go up after a drastic increase in the money supply because:

If people have more money, they’ll divert some of that money to spending. Retailers will be forced to raise prices, or run out of product.

Retailers who run out of product will try to replenish it. Producers face the same dilemma of retailers that they will either have to raise prices, or face shortages because they do not have the capacity to create extra product and they cannot find labor at rates which are low enough to justify the extra production.

Eventually the money will have less and less value. When we say we’d like more money, what we’re really saying is we’d like more wealth. The problem is if we all have more money, collectively we’re not going to be any more wealthy.

Answer 9

The general theory is US cant print more money than they have assets . How ever this administration does not seem to understand this . This is the current deficit problem . Which drives interest rates and inflation up . As a result breaking down the working class .

Answer 10

I think they have to match the gold in Fort Knox or something like that. They can't just print whatever they want. Pretty soon they will have to do that howevr to pay for the deficit. We are out of luck with the millions for us , so get a job