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19 answers

Because money by itself does not have any value. The only reason you want those little green slips of paper is because people will give you cool stuff in exchange for them

Conceptually, money is a medium of exchange. It is a common commodity agreed upon by all members of a society as having value. That means that you can use it to buy something (such as food) or you can recieve it as payment for services (working for a living). Because money is a medium, it only has as much value as that which it can be traded for.

Printing more money does not increase the value of goods that it can buy, because the money itself doesn't have value. It's just a slip of paper. That's why you can't buy anything with monopoly money. Nothing in the world can transform the money in your pocket into food, goods, or anything useful. The only thing that does to the world is increase the number of paper slips the humans have in their pockets. The world and its bounty does not change wether you have 100 bucks in your pocket or 100,000 bucks in your pocket.

2007-06-23 13:35:24 · answer #1 · answered by Anonymous · 2 0

The more money you print and distribute, the less its value. Germany tried that tactic in the 1920s. Soon one needed a million Marks to buy a loaf of bread. People burned money for heat because it was cheaper than coal.

2007-06-23 19:01:08 · answer #2 · answered by Anonymous · 2 0

supply and demand...
if you make more money then the value of the currency goes down, because noone needs to earn more. During the economic crash in Germany between the world wars they tried to keep things going by printing lots of money. people were going around with wheelbarrows full of deutschmarks, and kids used wads of notes as building blocks. costs kept going up and up

2007-06-23 19:05:17 · answer #3 · answered by Anonymous · 0 0

There is enough money made for everybody .Unfortunately those who make it look after themselves first and any left over is shared around.

2007-06-23 19:19:46 · answer #4 · answered by ROBERT P 7 · 0 0

It's the ol' supply and demand issue...if there is little supply the demand is high....if too much then the demand isn't there and the value goes down. There was a story of a king named Solomon who made silver so common that they paved the streets with it. Guess they had too much and couldn't figure out what to do with it.

2007-06-23 19:03:12 · answer #5 · answered by Cory W 3 · 1 0

the money is printed according to the stock of gold and stock exchange reserves..if the govt prints more, then there will be no value for money...if u give 100$, you can only buy a candy....so excess circulation of money will affect the purchasing power and it will create the inflationary situation....

2007-06-27 17:14:10 · answer #6 · answered by kumar 2 · 0 0

I've been told there has to be enough gold or something to give all the printed money some value.

2007-06-23 19:03:29 · answer #7 · answered by DiamondsNHearts 3 · 1 0

Every one in the G8 nation's wealth is enough to make everyone in the world a multimillionaire,maybe a billionaire so why aren't we?.

2007-06-24 12:53:21 · answer #8 · answered by Spsipath 4 · 0 0

To put it simply it would lose its value and we would all be forced to create another form of money or currency.

All that other stuff is right though. greed, power etc. control is a major factor.

EVERYONE
Watch a film on google called "Money as Debt"

2007-06-23 19:07:23 · answer #9 · answered by angry youngman 1 · 0 0

The more money you print, the less each peice of money is worth.

If there is only two apples in the world, and only two dollars in the world, then each apple would cost one dollar. However, if there were four dollars and two apples, then each apple would cost two dollars.

This is called inflation.

2007-06-23 23:11:47 · answer #10 · answered by knowalotlearnalot 4 · 0 0

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