I'm sure this is a stupid question with a simple answer, but I really would like to know. If this country is so in debt, couldn't they just "print" more money to solve this? I have already read that there is not enough gold to back up the money already printed, so why conserve the paper now?
2007-06-26 08:58:47 · 7 answers · asked by Sharon B 1 in Business & Finance ➔ Credit
Besides all that...
People work hard to get out of debt. Debt keeps people under control.
I know a lot of people that I dont want to see have too much time on their hands.
Work is good...it keeps you health. Charge it up, work it off and have a grand time. If $hit hits the fan...file bankruptcy.
God Bless America...our home sweet home!
Good luck
2007-06-26 12:19:03 · answer #1 · answered by smile4cobra 3 · 0⤊ 1⤋
We should export more and import less. The trade deficit with China and Japan are getting worse. The Chinese and Japanese increase our dollars value so high that their citizen can't afford to buy American products therefore they don't import from the US. American don't save for future but spend more than ever. Everyone has credit cards debt. If you ask an average American how much do they save for their retirement I can guarantee you that some of them don't even save money for the golden years. Printing money is not a solution for resolving the deficit.
Since the Europeans get together and uniform their currencies. The US dollar is worth less than the Euro. That's why I'm not taking my money to Europe on my vacation. I just use my credit card instead. At least that way I can earn points on my card.
2007-06-26 09:22:29 · answer #2 · answered by Connie 3 · 0⤊ 0⤋
If the government were to print more money then the consumer prices would rise.
There are different measures of inflation, including those having to do with consumer prices, cost-of-living, wholesale, et cetera.
The problem is that if inflation were to occur, people's income would not change.
Example: Prices of commodities would rise but earnings would remain the same, so you'd have to pay more because of inflation.
Other aspects would be unions would demand higher wages and the price of exporting goods will increase.
Basically,
Inflation occurs -> prices rise --> value of money decreases
2007-06-26 09:18:44 · answer #3 · answered by Chris 3 · 1⤊ 0⤋
They -do- print more money. But the more money they print, with no added wealth to back it up, it makes existing money worth less, so it doesn't help with debt. But they do print more money every year, as much as they can get away with, to make it look like there's more money.
2007-06-26 09:07:14 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Money has to be backed by securities within the gov't for that money to have any value. Producing more money leads to inflation and weakens the dollar due to more money being in circulation than their are securities to pay for it.
2007-06-26 10:44:56 · answer #5 · answered by thinking-guru 4 · 0⤊ 0⤋
it would cause an inflation, making the money worthless, so there would be no use for it, the only way for us to get out of debt is to make and sell goods, but instead we keep buying
2007-06-26 09:06:53 · answer #6 · answered by Dar-E-O 3 · 3⤊ 0⤋
Because it will lesson the worth of the dollar.
2007-06-26 09:03:11 · answer #7 · answered by Pengy 7 · 2⤊ 0⤋