2006-07-07 13:58:04 · 7 answers · asked by rrivera23bulls 1 in Business & Finance ➔ Other - Business & Finance
If you print more money, you will cause inflation. Too much money chasing too few goods causes inflation. The amount of money you print is one of the ways they control the economy; it will go off kilter if you just print money.
2006-07-07 14:03:47 · answer #1 · answered by ? 4 · 0⤊ 0⤋
the answer: Way back in the early 1900's, 1800's and 1700's the U.S.'s money was backed by gold or silver. For every dollar or coin that was out there you could go to an official sanctioned by the gov't and give them your coin or dollar or what ever you had and in return you got that amout of money in gold of silver. Also, back then there was not even close to as much of money being printed every year by the gov't. Therefore you could buy things for pennies, nickels, dimes; and dollars were alot of money. Back in the late 1900's a president (sadly, i can't recall which one) decided not to print money that was backed by gold of silver.
This added to inflation. (Lots of money being printed so much that the dollar loses its value.) Now that piece of paper that you hold in your hand which we call money is just that; a piece of paper. The only value the dollar has is that which you put into it. If you had 100 dollars and flushed it down the toilet, no where is there gold of silver that is not being accounted for. Money back then was like proof that you had gold of silver in your name, now it is not like that.....hope this answer helped!
2006-07-07 21:14:17 · answer #2 · answered by Dana 2 · 0⤊ 0⤋
Exactly. The deficit of a country is like a person's credit card debt; It doesn't go away if you don't pay it off, and the money you create has to go into paying that debt off.
2006-07-07 21:02:20 · answer #3 · answered by covertwalrus 3 · 0⤊ 0⤋
If we printed as much as we wanted it would be internationally traded for about the value of monopoly money.
2006-07-07 21:02:13 · answer #4 · answered by Anonymous · 0⤊ 0⤋
germany tried this at one time. an old story went like this: a man was pushing a wheelbarrow full of money. a thief took it from him, dumped out the money and kept the wheelbarrow.
2006-07-07 21:09:21 · answer #5 · answered by oddyerdy 3 · 0⤊ 0⤋
Because it has to be baked by real value, you can't just print all you want.
2006-07-07 21:01:02 · answer #6 · answered by Anonymous · 0⤊ 0⤋
because we can't print it as fast as we can spend it
2006-07-07 21:03:33 · answer #7 · answered by sheepherder 4 · 0⤊ 0⤋