Ever wonder why the Government won't just print more money?

[vp44]

This is a very good question. I look forward to reading more about this. I think it is because there is probably nothing to back up that paper money. I am just guessing.

[de3ik]

I too had heard the government doesn't print more money due to the inflation issues. Kudos to the other members for posting the information to make it more clear, but I wish we could print more money too. I'm sure every country would if they could, but then that wouldn't work as due to the aforementioned inflation. And no one wants to be ruined by inflation. Just remember post World War II Germany and Zimbabwe of today. America may not be where it was financially in years past, but I'm thankful we are in the midst of that kind of inflation. I hope Zimbabwe recovers though.

[raven1114]

It would be nice if they could just print more.

[masked_brown_guy]

like the others said inflation would happen. our GDP
(gross domestic product) has a bigger determining factor in the value of our currency. basically if we as a country aren't doing well, then our currency value decreases.

[Flackle]

Printing money doesn't create value, and value is what is actually traded in the marketplace. Money is suppose to represent value, and value can only be truly created through a mix of cleverness and effort. Value is what determines demand (what is valuable for people) and thus we someone can supply that demand (which is where we get production).

Printing money doesn't create value.
Value creates production.
Thus printing money doesn't create production.

And this is fundamentally why we shouldn't print money, because it doesn't produce anything. You could argue money itself has demand since it is suppose to represent value and so it actually has value, but like all things this demand is limited. Sure, for now everyone wants money. But once everyone in the United States owns a million dollars will they see the same value in just one dollar as they did when they owned only a thousand? Unlike other things, the demand for money could easily be met and everyone could have all the money they want. The paradox here is that once we fulfill this need then the money becomes useless because its lots its ability to represent value. Its value is directly propositional to its supply.

Say someone wants bread so they won't starve. Each piece of bread is seen as precious and so it is well protected. If they where suddenly handed 100 loaves of bread, they would eat till they get full and wouldn't care if someone comes up to them and takes just one slice. Their perception of value for that one slice of bread changed with availability. Inflation results from this change. In order to get the same value for something that they previously traded for 3 slices of bread, they must now get 6 slices or else it isn't worth it to them to trade at all since people are just giving them bread. If it rained bread from the sky, they probably wouldn't bother to trade for it at all. This is called hyperinflaton where what was previously traded with becomes useless.

In this case it would actually be good, since no one would have to go hungry. But in reality, the money we use has very little value since it cannot be eaten.

[devilroljin]

I always thought you have to back the paper with something, usually gold. In the past, the first paper money or notes, where issued by banks, you would deposit your precious metals and they will issue you a paper money, with the "face value" of such belongings. Instead of you carrying around all your precious belongings, you would then be carrying the paper money. Therefore, all paper money was backed by real valued tangibles. Same philosophy still applies.

[queenofnines]

There is so much in the media about the government paying their bills.  Aren't they the ones that print the money?  Why won't they just print more of the stuff?  Or do you have the answer?

That's a very naive view of how it all works. They CAN'T just "print more of the stuff"; money represents work, and if no one worked for those dollars, they are meaningless. There would be consequences more complicated than you can imagine.

[stretch1967]

Inflation

[Gerianne]

they need to STOP printing "so much money".
That's how we got INTO this MESS.

[Gerianne]

"The Web OF Debt" is a very good book I recently read.
If you really want clear answers and want to understand what has been happening, I highly recommend this for you.
We all would like to know the truth.

[ktheodos]

Printing more money leads to inflation. The more dollars there are the more things start to cost.

Right....we can't just print more money or it makes everything worth less. If printing money was the solution, the problem would be fixed now!

[LaKecias]

I always wondered the same thing we make money why can't we just print more

[sak4kat]

I thought that's what they did for the "bailout".... didn't bail anybody I know out.

[vickysue]

When you don't have the backing for the money you want to print what good is it. They just need to quit spending so much. When will Obama admit that you can't spend your way out of debt. Man if we kept spending when we didn't have the money guess where we would be.

[Flackle]

Printing more money leads to inflation. The more dollars there are the more things start to cost.

Right....we can't just print more money or it makes everything worth less. If printing money was the solution, the problem would be fixed now!

Technically, everyone else will still be worth the same. You're still in the mindset that the value of goods is solely based on its monetary value. Instead, its the money itself becoming worth less in relation to things of real use to human beings.