promotion image of download ymail app
Promoted

If this country (United States) is so badly broke, why dont they just print more money?

I just dont get it. Why doesnt the government just print more money to fix our economy and stop spending stupidly. Can someone help me understand? Thanks

Update:

Then why are other countries doing better then us economically?

Update 2:

Then why are other countries doing better then us economically?

Update 3:

Are you saying that other countries have less money therefore the money is stronger? Like the euro?

Update 4:

joe s, thank you for your answer

24 Answers

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    Printing more money would just create inflation... The more money you print, the less value it has.

    The relative values of the dollar and euro are determined by the supply and demand for each currency. The demand for dollar-denominated items can be thought of demand for goods&services and the demand for capital goods like real estate and stocks and bonds.

    The threat of inflation can make dollar-denominated goods seem like they won't be as valuable in the future, making worth less now. This reduces the demand for dollar denominated capital goods. The value of the dollar will naturally fall until the supply and demand for it and the euro reach equilibrium...as the value of the dollar falls, US goods seem cheaper and the demand for US goods should increase.

    *******************************************************************

    FYI, the US is not badly broke. Actually, we're still doing better than the rest of the world. Every country with a large economy is either doing worse than us or just as bad as us right now. This is a global recession.

    • Commenter avatarLogin to reply the answers
  • Anonymous
    1 decade ago

    The more money you print, the less the value of the money. Money used to be worth a certain amount of gold. Although that is no longer the case, use it as an example. If you have $20 worth one gram of gold, then printing more money just makes the gold worth less because there is less to go around. In turn, with more money being created, $40 only buys you what $20 used to buy you.

    It's a sick, dirty circle.

    • Commenter avatarLogin to reply the answers
  • 1 decade ago

    Paper money is worthless unless it has something to back it up. so let's say you have $100,000 in gold. If you print 100,000 $1 bills you have the same value, but now you print another 100,000 worth of $1 bills, you have devalued your $100,000 in gold to $50,000, the term for that is inflation. So you can't just print money, without some kind of standard backing it up. The government has been printing money like crazy, the thing they are trying to do is find ways of putting that money into the system, it's not like they can just go outside and throw it to people passing by!

    It's far more effective to give people tax breaks if they don't have to pay taxes, they hire more people ... creating jobs. People who have jobs purchase homes, cars and other goods, making the system work. By GIVING money away they make people dependent on the government, those people don't need to work and eventually you have no people working depending on the bankrupt government to "bail you out"...

    • Commenter avatarLogin to reply the answers
  • 1 decade ago

    Printing more money will put us in a worse situation than we are in now.

    Inflation is only one issue. Stagflation is more likely. It would drive up interest rates and cause the government to directly vie for the money that banks would have to loan causing a true lockup in the credit market.

    The country would have more money but everything you buy would cost more. Your home would be worth less, yet cost more.

    • Commenter avatarLogin to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    money produced should always equal the goods made in this country. if there is too much money and less of the products, we will have what is called an inflation. if this happens, you will need much more money to buy a product, say you were previously buying an apple for $1, with inflation due to overproduction of money, you will be paying $100 or even $1000 for a single apple. this is what happened to zimbabwe where they have to carry millions of zimbabwen dollars to buy a single loaf of bread! this is no joke! those zimbabwen people literally wear backpacks full of money when they go to groceries and they literally spend millions of their money for some basic goods which in the u.s. are cheap. it can happen here too if we let this situation go out of control so obama should make some very wise decisions so we won't end up like a 3rd world hungry country

    • Commenter avatarLogin to reply the answers
  • Pablo
    Lv 6
    1 decade ago

    Inflation fixes everything. You would not remember a wheelbarrow of money for a loaf of bread. The world would go the same way and in a while there would be a new bottom to the bottom. Things would adjust and you would be looking for a new horse with a buggy to get to work. The byproduct is green and has a smell but, maybe that is progress. What to do with all the metal laying around?

    • Commenter avatarLogin to reply the answers
  • 4 years ago

    even if we dont tell anyone, the dollar would still become worthless. thats what happened to germany after world war 1. they just printed money to pay off the debt. The people they gave it to were like "we dont want this crap" and gave it back to germany. A loaf of bread cost went from 3 doitschmarks to 3000 doitschmarks and everyones life savings was worthless. Thats when hitler came in and fixed the country. At the loss of millions of lives/.

    • Commenter avatarLogin to reply the answers
  • 1 decade ago

    That's part of the problem actually. They are doing that. The problem The Federal reserve prints more money on a promise the Banks will pay it back with interest. = inflation devaluation of Currency.

    • Commenter avatarLogin to reply the answers
  • Bob N
    Lv 5
    1 decade ago

    When a country does that, and keeps doing that, the value of each individual dollar eventually drops to zero.

    For example, in Zimbabwe, you have to use $200,000 bills to buy stuff.

    In other words, if the US government did that, the $20 bill in your wallet would eventually become worthless.

    If you think that life in Zimbabwe is more comfortable than life in the United States, then you need to sue your history teacher.

    • Commenter avatarLogin to reply the answers
  • 1 decade ago

    More money printed less in value. $3 WILL EQUAL $1

    • Commenter avatarLogin to reply the answers
Still have questions? Get your answers by asking now.