Does money ever go anywhere?

Question

So... can you ever destroy money? or is it just moved around from one place to another? why do we need to print more money?

Answer 1

Certainly, burn it.

Otherwise, yes it is just moved around from place to place. Additional money is created because people become more productive creating an increased demand for money. If the supply doesn't rise, the same money has to be used more frequently. At some point, this higher frequency becomes a problem itself and so it is cheaper for the economy to create more money, a process called seignorage.

Answer 2

Money is no longer a physical thing in this world, it is merely numbers. For those who study Economics, you'd understand the money multiplier. When you put $1 in the bank, it becomes much much more than $1 and suddenly, this $1 can travel around the world and become manifested in different ways. Then again, the $1 dint move physically, it's still in the bank, where you left it. The only thing that moves it around is electronic systems. So, you can't destroy money as it never existed in the first place.

As for why we need to print more money, this has got to do with something different, it's called monetary policy.

Answer 3

There are always more and more people. That's why.

We also print more and more money so that people spend more.
The more money spent = the more money government makes to help pay off our national debt.

Unfortunaly, the more money printed, the less it's value.

Answer 4

Money is not really money...........its just a promissory note........As notes are destroyed (millions of old ones burnt every week) so new ones are printed to replace them.