They're always complaining about how there's not enough money to handle a situation. How come they can't just make more money so they won't have to worry about their budget?
2006-08-03 07:11:54 · 14 answers · asked by Anonymous in Politics & Government ➔ Government
You've not learned how the dollar is valued have you?
Government can print money until the cows come in, but if they do more money is in circulation related to revenue (taxes) it takes in, and low and behold it costs more to get the same item (inflation) If the money supply is tight generally prices will remain fairly flat.
Printing money is not the answer, what is the answer is cutting items out of spending like a 250 million dollar bridge to nowhere alaska and a 500 billion dollar medicare prescription plan that is another government sponsored ponzi scheme like all New Deal and great Society programs..
As an aside we have not used Gold and Silver to back up our currency for a LONG time. Why inflation has occured since 1933 is because we no longer use Gold and Silver (which are hard assets) as monetary backing.Essentially the paper you carry in your wallet has no value except that is it a standard mode of exchange.. Should the sheep ever truly wake up to the fact that government debt and spending exceeds revenue inflation will run rampant.
Buy Gold and Buy Silver. Keep it, Gold is about $620 / oz now, Silver is about $12/oz now. It is speculated if we do run up against the ropes because of war expenses and excessive domestic government spending a dollar today will not be worth much more then Toilet paper. Gold however even with all things equal will retain value over time. Some economists estimate Gold could reach $2000-3000 and oz by the end of the decade as it US Dollar because of the potential for inflationary pressure on the Dollar.
2006-08-03 07:20:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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2016-07-21 06:00:44 · answer #2 · answered by Agustin 3 · 0⤊ 0⤋
When the gov't "makes" more money, it sells more Treasury debt instruments (notes, bills and bonds) - and uses the money it collects to spend on whatever.
Those new debt instruments are promises (bonds) by the government to investors who lent the money to repay the bonds' principal plus interest. United States debt is backed by the full faith and credit of the US government - that is, they will collect taxes, and raise them if necessary, to pay the debt.
Making more money is the same as raising taxes in the future.
The other writers are correct that increasing government spending also increases the money supply, which means more dollars chasing a limited number of goods (oil, cement, housing, cars, warships, guns, aircraft, etc.) and drives prices higher.
In summary: when the government makes more money increases inflation, and puts the financial burden on us and our children in the future.
Look at the value of the dollar in comparison to other world currencies in the past 20 years. Vs. the Japanese yen, the Euro, the Canadian dollar, etc. The US dollar is going down in purchasing power because the US government is expanding the money supply. Not dramatically each year, but enough over time to make it worth significantly less over the long term.
2006-08-03 07:33:38 · answer #3 · answered by Tom-SJ 6 · 0⤊ 0⤋
It's economics, how a society deals with the problem of scarcity: the more of any commodity you make, the less valuable it becomes. Gresham's law: bad money will always drive out good money. The government's goal, like consumers', should be not to make more money to spend but rather spend wisely what we do have.
2006-08-03 07:17:11 · answer #4 · answered by ensign183 5 · 0⤊ 0⤋
because we only make as much money that shows how rich our nations is as a whole. and that is decided by how much gold we have. and in 10 years we dont want $100 to be worth what $1 is today.
2006-08-03 07:17:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They already do this to some extent. The problem is that everytime the gov. releases more money than there was previously, every single bill is worth less.
2006-08-03 07:17:41 · answer #6 · answered by Thomas the Tank 2 · 0⤊ 0⤋
Government doen't MAKE money...Federal Reserve owned by Bankers make/print the money.....by order of USA government......
what a wonderful idea? yeah! sure...their SO qualified...
"let the ones who control the money make the money" ?? who EVER said that?
2006-08-03 17:33:41 · answer #7 · answered by deed 5 · 0⤊ 0⤋
That will decrease the value of money and lead to inflation.
2006-08-03 07:15:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
lol well the problem is that they do just keep making money!
US funds are no longer backed by anything, in fact money is worthless.
2006-08-03 14:45:41 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Idon't know awsome question though you raise an interresting topic so rock on bye loves it
2006-08-03 14:35:11 · answer #10 · answered by Anonymous · 0⤊ 0⤋