Why doesn't the US Government just print more money? Isn't it true that we the citizens run the Fed. Reserve?

Question

Since we the citizens own the currency making process, and we all need more money...why not print more and distribute it as a dividend to us?

Answer 1

because the more money there is out there to be distributed, the less it's worth. I know that might not make complete sense...to demonstrate- if there is only one Babe Ruth baseball card in the world, it is worth a billion times more than it would be if there were 50,000 of them. The harder the money is to get, the more valuable it is. If they print money out, that money has to steal value away from the other money that is out there, making each dollar... less valuable... it does this because the product prices will go up in response.

Answer 2

If the government printed money when needed, the economic system would be flooded with paper currency worth nothing.

It would take $100.00 to buy a stick of gum.

The solution is for the liberal government to STOP wasting my tax dollars on more government programs that add nothing to the ecomony.

Last year the government took 42% of my income in the form of taxes.

That is the problem.

As former President Reagan said, " Government is not the solution to the problem - government is the problem."

Answer 3

The money you hold in your wallet or purse is little more than a bank note signifying a certain exchange rate equivalent to the current value of the American denomination. Whatever our standard of monetary exchange is at this time the dollar bills are only a representation of that value. So if we decide to mint more bank notes we are essentially just wasting the materials we use to mint our money because we can only print that which is validated and accounted for by and in our treasury.
This is also why every once in a while those bank notes or coins are recalled or decommissioned by our treasury. It's a precaution we deem as necessary if the exchange rate of those denominations fluctuate.

Answer 4

If the Gov prints more money, then the valu of a $1 will become lower and lower until it is looked at as a penny in other countries

The currency of the country will go down then it will be a poor country

Answer 5

We don't run the Federal Reserve. The Fed Chairman is appointed by the president and serves independently. The Federal Reserve Band was created in 1913. It was created by a group of bankers as a way of printing money for themselves. Who was involved? Paul Warburg, Aldrich-Rockefeller, J. P. Morgan. Many others. I invite you to read about them.

Answer 6

Money has no intrinsic value of its own. It is only legal tender and is worth only as much as the worth of the goods produced and the wealth of a nation.
Printing up too much money makes it too easily accessible to people who have not contributed to the total goods or services of a nation in kind and therefore is inflationary.
Germany in the 1920`s did exactly that and the money was so plentiful it began almost worthless, in fact many people ended up using it as wallpaper as its worth was less than the expense of wallpaper.

Answer 7

Actually the dollar doesn’t represent tangible wealth such as gold or silver. The problem was, there would be a war or a depression and everyone would raid the banks trying to trade in their paper money for gold. Paper money actually represents debt. It’s an IOU from the gov’t,

Answer 8

Because inflation.. we all need more money but at the same time we don't want to have to pay $20.00 for a gallon of milk. If theirs to much money than the U.S. dollar isnt worth as much.

Answer 9

Other governments tried this before. All it leads to is a spike in inflation resulting in bad things. See Germany following WWI.

Answer 10

Economics 101

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