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Title: Why are people POOR if the Government just printing Money? Post by: crazyaspinoy016 on May 26, 2018, 11:57:53 AM Why the Government can't just print more money?
Title: Re: Why are people POOR if the Government just printing Money? Post by: sevenonetwo on May 26, 2018, 03:01:08 PM Why did not the government print as much money as possible?
Because printing money will affect inflation. So, if a country prints money constantly in large quantities, then it is not called wealth because the value of its currency will actually continue to decline. In the economy, the price of the goods will depend on the ratio of the amount of money and the quantity of inventory. That is, if the goods in circulation more than the amount of money in circulation then the price will tend to fall. And conversely, if the amount of goods is less than the amount of money in circulation then the price will tend to rise or commonly called the inflation. Title: Re: Why are people POOR if the Government just printing Money? Post by: nutildah on May 26, 2018, 03:20:07 PM Because they print it to buy back treasury bonds, which are for the most part, owned by rich people.
So then the rich people use it to buy other things which help the middle class. Then the middle class use it to buy things which help the low class. Its supposed to be a "trickle-down economics" type situation, but really all that is happening is the rich are getting richer and the poor are getting poorer. |