can problem of scarcity be solved by printing more money?

Answer 1

No. Scarcity is the quintessence of economic though. Scarcity can NEVER be eliminated. Even if there was more money in circulation, this would create inflation, only raising prices.

Scarcity is the very reason why we have an economic science. If scarcity was eliminated, we wouldn't even have to worry about economy, since everyone could get as plenty of everything as everybody wanted.

Answer 2

YES !! temporarily. This printing of more money is done ,by most
countries of the world. Every working people or rather all people
want more money which is not possible unless the country's
economy is very strong i.e people should work honestly.businessman should do business properly,their
will be good governance etc. The easiest way is to fool the
working class by giving them more currency notes not actual
money.You see the price of gold to know whether you are
paid more or not.
Every economy has some resilience there is no immediate
effect,but after that price spirals up causing too much money
chasing too few a goods.
When you are exporting agricultural goods,friuts,marine
products you are denying your ordinary countrymen of
these products and these causes scarcity.If 20% of
agricultural products are lost due to improper storage
facility then there is no doubt that it will cause scarcity,if you
give bank loan to hoarders then that will cause scarcity.
Problem of scarcity can be solved if you can check your population growth.put all cultiviable land under cultivation
use properly the public ditribution system and so on.

Answer 3

Yes and no.
The problem of scarcity is that there are too few goods and services available to meet demand at a given price level. Adding to the supply of money will only increase the supply of goods and services temporarily, so the main impact in the long run is to make everything cost more in nominal currency. It will still cost the same in inflation adjusted terms.
In the short term, printing money can increase output until people understand what is going on. If the government printed more money, in the short run, people might work harder and produce more in order to earn more nominal currency, not realizing that there is more overall currency in the system. Once the impact of additional currency gets filtered through the system (and this is likely to happen very quickly in a modern society with advanced communications) prices will just go up to absorb the additional currency and overall production will return to normal.
So in the short term, you can impact the amount of goods and services produced, but in the long run, prices adjust and the amount of goods supplied returns to equilibrium.
Increasing the money supply indefinitely can actually hurt economic growth and lead to less availability of goods and services. Individuals will try to spend their money immediately, before the value drops again, which will lead to lower investment as everyone tries to hold all of their value in goods and not currency. Trade also becomes more difficult because since currency is no longer a stable source of value, more trade will be done in the form of barter, which is less efficient. Finally, since people are not saving but spending everything they make, long term projects that could increase the economy’s production don’t get funded, and this stunts the economy’s growth. A classic example of this is Germany in the 1920’s, where people were getting paid daily and carting around wheel barrows of cash to buy bread.

Answer 4

To have an explicit understand of what scarcity is, is really vital. scarcity is the excess wants or demand over what is actually been produced. Scarcity exist because there are limited resources. (labor, natural resources, and capital). and higher demand. printing more money cannot increase naturally resource, which make it impossible for the problem of scarcity to be solved by printing more money. printing more money will lead to too much money chasing few good. and as a result, will lead to inflation. which brings back to normal the price of goods and services as they were. (the more money you accumulate, the higher the price of good) sine we have limited resources all over the world, and human wants remains unlimited, the problem of scarcity will still remains prominent. the only way to solve the problem of scarcity is to have unlimited resources and limited wants.

Answer 5

Problem of scarcity of printed money can be solved by printing more money. Printing of monet cannot reduce scarcity of other things. If it were how nice it would have been for oppressive governments that rule the entire world.

Answer 6

NOOOOOOOOOO

Because printing more money without being backed by a real (ie: price adjusted) increase in output (GDP) or by an increase in the country's stock of natural wealth (eg: gold) will lead to one and only one result: INFLATION, and in particular: hyper inflation. Why??? Because more people will have purchasing power, but they will not find things to purchase, so the prices of the existing things must rise greatly. Milton Friedman, the Nobel prize winning economist, proved that increases in the money supply are always the key reason behind continuous inflation..

Moreover, you must know that if a country prints money without any backing, the IMF will discover this sooner or later and will proclaim it to the whole world that your country's currency has become only printed papers without any real value and thus will not be highly acceptable in international transactions (import).

Answer 7

Quite possibly, although you would then run the risk of affecting the actual value of the money, as the more physical notes there are, therefore the more notes needed to be used to buy things of the same value.

Certainly in the short term, people would benefit from more money being printed although as above there are risks involved.

Answer 8

problem related to scarcity can be solved by sharing what is already in circulation than by printing more money

Answer 9

NO. All you do is create inflation. If things are scarce how would printing money help? Basically if you print twice as much money, the supply of money is twice as much as before, there are the same amount of goods to buy with it, so prices will double. Inflation.

Answer 10

No. Printing money is not a solution but enhanced production of goods may solve the issue.