2007-03-19 08:43:19 · 10 answers · asked by Sweet 1 in Social Science ➔ Economics
Scarcity is a problem with natural resources, not a problem that can be solved by making money worthless.
2007-03-19 15:27:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No. Forget money, that's a distraction. Scarcity is caused by the limited number of real physical resources, and the limited number of people available to manipulate and supply those resources, and by limited time.
Could you give everyone in America a new car this year? No -- there are not nearly enough people who are trained to be autoworkers, and there are not nearly enough factories or enough equipment to make 300 million new cars, instead of the 17 million that are normally sold in the US market.
And if we launched some massive effort to shift as many people as possible to auto production, we'd be pulling them away from supplying whatever else they've been working on, creating shortages elsewhere.
These are the real limitations. Money just serves as a means of allocating people and resources to where society needs them most, to optimize the output of goods and services in the proper amounts based on the real limitations we face.
2007-03-19 17:59:15 · answer #2 · answered by KevinStud99 6 · 0⤊ 0⤋
No. You are devaluing the existing currency - this is a good way to destroy an economy. Scarcity exists for nearly everything, to some degree. It's not a 'problem' to be 'solved,' but a natural condition that is addressed by the marketplace - letting prices adjust themselves according to scarcity
2007-03-19 15:49:22 · answer #3 · answered by Bombadil 3 · 1⤊ 0⤋
I understand what your are coming from. I had a question like that when I was younger. Money needs to be backed up by gold, because if there's not enough gold to back up the money, then the money is worthless. Paper isnt worth nothing until theres something of value behind it.
So no it would be a very big cause to inflation.
2007-03-19 16:04:40 · answer #4 · answered by Enigmatic Mistress 2 · 0⤊ 0⤋
No. That would give rise to inflation (very very bad). A pop would be $10, a shirt $200. Back in the Day, Germany tried doing just what you asked. Their money became so worthless children used blocks of it banded together to play with.
2007-03-19 15:52:06 · answer #5 · answered by YE_ 2 · 0⤊ 0⤋
INflation is caused by the printing of money without material production to support its value.
2007-03-19 15:49:40 · answer #6 · answered by canadaguy 4 · 1⤊ 0⤋
With the United Nations having been created, wouldn't it be fun to let some other country take over?
2007-03-19 16:14:10 · answer #7 · answered by isis 4 · 0⤊ 0⤋
You have to understand the Federal Reserve.........THEY ARE NOT FEDERAL!
It is not owned by YOU...It is about 5 large banks...They control YOU!
Our Gov tells the fed they wany more $$$...
The fed picks up the phone and orders it...(from the mint)...It is then sold to the US GOV cost + int.
Your money is no longer backed up by the silver & gold...ITS BANKERS!
Greenspan..can fart...It could cost YOU MONEY...
2007-03-19 17:30:47 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I don't think so because then the companies would just raise prices and money wouldn't be worth as much.
2007-03-19 15:54:58 · answer #9 · answered by ghost_of_a_memory682 1 · 1⤊ 0⤋
no, it leads to inflation...just look at germany before WWII, or france before the french revolution.....
2007-03-19 15:48:21 · answer #10 · answered by bksrbttr 3 · 1⤊ 0⤋