ok...if there is such money problems in the USA today (health insurance, money for medicine, money for homeless, ect) why can't we just make more money? I mean..that's how money is originally given? It's not like you have to wait for it to grow?
this is an honest question...maybe a dumb one...but i've never been to keen on economics and finance.
2006-10-31 08:52:29 · 8 answers · asked by Sara S 4 in Social Science ➔ Economics
Lots of countries have tried that. It doesn't work. The result of just creating too much money is super high inflation and devaluation of your currency verses other currencies.
Money has a value based on supply and demand just like everything else.
If you double the supply by printing more money, then the demand is going down and that means the value goes down.. Twice the money so now $2 is about what $1 was worth. If you bring your new $2 to buy $1 of medicine they will now charge $2.
2006-10-31 10:52:18 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋
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2016-07-21 21:15:27 · answer #2 · answered by Herman 3 · 0⤊ 0⤋
The money itself is not what has value, but that it represents labor and goods. If you create new money it deludes the value of the existing money. It is like making more lemonade by adding water to a half full pitcher.
2006-10-31 10:59:27 · answer #3 · answered by meg 7 · 2⤊ 0⤋
just printing more money doesn't mean you have more,,there would be serious economic problems..in the past there was a time where we had gold to back the amount of currency that the government issued...that is no longer true
2006-10-31 11:08:25 · answer #4 · answered by blueman2 5 · 0⤊ 0⤋
The government $$ isn't made, it is taken from taxpayers.
Everyone who has a job, or business or buys things pays taxes. The government collects them into a budget, then meets to decide how to spend it (hopefully according to the wishes of the taxpayers).
2006-10-31 08:59:01 · answer #5 · answered by kate 7 · 1⤊ 0⤋
If we just printed more money, this would lead to inflation. With more and more money circulating in our economy, the value of it goes down because everybody can get more.
2006-10-31 08:55:02 · answer #6 · answered by Deuce 2 · 2⤊ 0⤋
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2016-07-08 04:52:18 · answer #7 · answered by ? 3 · 0⤊ 0⤋
Because the 1% that have all of the money and own all the businesses don't want us to earn more. Keep us down where we belong so they can keep their wealth.
2006-10-31 09:02:42 · answer #8 · answered by CuervoBMed 4 · 0⤊ 1⤋