The problem is that when you make more money, the result devalues the money that is already there, meaning you have to make more money to cover the money that is already there that now is worth less. Printing more money=inflation.
So, if I can buy a loaf of bread for 1 buck today and the government decides to double the money supply so that everyone's income is doubled, then the price of bread is 2 bucks. Which means that in relative terms, although I have twice as much money, I'm still just as poor.
This is the reason we have a Federal Depository Bank whose entire job is to control the money supply so that we are producing more money, but not too much to devalue the money supply.
2007-06-28 02:44:12
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answer #1
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answered by C.S. 5
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Silly girl, a government can't simply print money at will and put it in the circulation. That would simply deflat the value of the currency. The money has to be backed by assets and capitol to have any value. Think of it this way, a dollar is a commodity, like an apple say, and there is a set number of apples available. Lets say 10, and the price of apples is 10 cents. If all of a sudden 10 more apples came on the market, then the price would go down because a larger supply and the same demand, say to 5 cents an apple.
2007-06-28 09:44:47
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answer #2
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answered by booman17 7
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printing more money isn't the problem, it would create more of a problem, it would make our money worth less then it already, and besides the U.S. Treasury Department doesn't print our currency, and our government has no control over our own money. The so-called Federal Reserve Bank controls our money supply, It is not a federal agency, it is a foreign owned business, And is connected to the United Nations, and is a key component for all our troops policing the world.
Our government should learn to spend wisely, and they never have, and never will, and our government needs to take back control of our money and get the foreign controls off our money. This would help make our government sovreign again
2007-06-28 10:05:53
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answer #3
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answered by yee_haw31617 2
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The more money government prints the less it is worth. They do not just print money they have to also borrow that amount from the Federal Reserve or world bank.
We used to be on the gold standard which allowed us the freedom to make our own destiny.
We are now beholding to private banks and individuals instead of ourselves.
Take a good economics 101 class so you can learn that it is not just as easy as printing money.
2007-06-28 09:48:08
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answer #4
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answered by Anonymous
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First, the "Fed" bank thats in charge of printing up the money is independent of the politcal process. No politician can simply "order" more money to get made.
Second, "printing more money" is a primary cause of inflation. When the government adds to the money supply, they make every "existing" dollar worth a little less. Prices go up. No one is happy...
2007-06-28 09:50:52
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answer #5
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answered by chocolahoma 7
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Economics 101....
You cant just print money without goods, services or labor to back up that currency.
If everyone had these unlimited funds you speak of what would the value of a dollar be?
2007-06-28 09:44:15
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answer #6
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answered by clawdaddy314 3
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Have a look in your local 'paper and see if there is a basic Economics class at your local night school. It will answer a few basic questions for you and help you get this into perspecitve.
2007-06-28 09:48:32
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answer #7
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answered by Van der Elst 6
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You know, I have always wondered the same thing. I mean they can make millions everyday with no problem. I don't know. Maybe it costs money to make money.
2007-06-28 09:43:26
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answer #8
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answered by ms_sexy_thang05 3
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Too much cash and not enough stuff to buy with that cash = inflation.
2007-06-28 09:42:27
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answer #9
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answered by Anonymous
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money is made out of wood and that is trees and globel warming is a fact!
2007-06-28 09:43:53
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answer #10
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answered by fourthy27 2
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