2007-01-02 04:20:05 · 17 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It leads to hyperinflation. It was tried in Germany between the world wars. Soon it cost millions of marks just to buy a cup of coffee. Foreign studenrs were able to buy rows of houses for, what was to them, just pennies. Only earned money can be printed if this sort of thing is to be avoided.
2007-01-02 04:27:28 · answer #1 · answered by David S 2 · 0⤊ 0⤋
The way our economy is structured, the rich get richer and the poor get poorer. The reason that we cannot print off more money and give it to the poor is that our society is based on classes and when you increase the wealth of the poor without making a complimentary increase to the wealth of the rich, then the rich become relatively less weathly. Seeing as how the rich are the ones holding the purse strings, they are not likely to introduce any measure that will cause a relative reduction in their own wealth..
2007-01-02 12:32:44 · answer #2 · answered by p-trik 1 · 1⤊ 1⤋
If something is available freely, its value will be nil and the demand for such currency will vanish.
In effect , the entire monetary system which depends on the value of the currency will crumble.
if we collect the wealth of any nation from every one and redistribute it equally , within a very short time , the rich will become rich once again and the poor will become poor once again because the rich man knows how to make money out of money and the poor fellow knows only how to spend.
2007-01-02 12:39:48 · answer #3 · answered by rkn10 1 · 0⤊ 0⤋
Printing off more money causes inflation which devalues our money supply. People working for minimum wages will become poor.
2007-01-02 12:25:35 · answer #4 · answered by Mark E 3 · 0⤊ 0⤋
That's exactly what Adolf Hitler did in WW II ...a clever man wasn't he ;-)
Just google for Reichsmark .... maybe a picture search and you will see lots of signs where the price of bread increased from
2 RM to 1000 RM and finally 6,000,000 RM and more....they had to cross the price all the time and write the new one on top.
2007-01-02 17:05:24 · answer #5 · answered by maddog2000 1 · 0⤊ 0⤋
Essentially is inflation. If you don't control the supply of money then inflation rises, money is worth less and prices rise. Wages spiral as they try to match the rising inflation. It is a problem endemic in the Third World - eg Zimbabwe. See the works of Milton Freidman.
2007-01-02 12:25:28 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Money represents gold reserves - you can only print off more if you've got the reserves to back it up!
2007-01-02 12:31:04 · answer #7 · answered by Purple 8 4 · 0⤊ 0⤋
Because the big priminsters and presidents wouldn't like that. money could become worthless and like the wall street crash the world could be thrown into chaos.
But it would solve all (most) of the problems...
2007-01-02 12:24:01 · answer #8 · answered by Loopy_lora 2 · 0⤊ 0⤋
That would be the most stupidest thing to do. Inflation would go crazy. If everyone has a lot of money the price for everthing will increase.
2007-01-02 12:22:25 · answer #9 · answered by Gemini Girl 4 · 0⤊ 2⤋
You need poor people to have rich people.
2007-01-02 12:30:46 · answer #10 · answered by Stef 4 · 0⤊ 0⤋