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Author Topic: why the state does not print a lot of money?  (Read 2652 times)
Shenzou
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May 23, 2018, 07:26:17 PM
 #61

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
It is like asking why not create more bitcoin, the answer would be supply, if an asset has no limit than it would be totally useless, the high demand and the low supply is what gives money its value, and having more money means less demand, the less demand the lower the value of that currency would become that is why the federal reserve is independent from the government which makes sure that there is enough supply of money to keep the economy going.
Reagan_alvaro
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May 23, 2018, 07:59:50 PM
 #62

I think why the state does not make a lot of money is to stabilize the value of money itself
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May 23, 2018, 08:27:04 PM
 #63

On the economic side, the problem is that printing more money doesn't mean that the country will be rich. The more money that is printed, the more it is devalued which can lead to inflation of goods and services. The law of supply and demand also applies to money. The government will print what is just enough. Any country wants to avoid inflation that is why they can't just print money even if they want to.

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lzby2000
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May 23, 2018, 08:37:03 PM
 #64

If your country keeps printing money, it will be ordinary people who end up hurting. Continuous printing will soon cause serious inflation, and soon your wealth is robbed. If you have a $1000 purchasing power, you may buy only 100 dollars a week later.

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May 23, 2018, 08:44:18 PM
 #65

On the economic side, the problem is that printing more money doesn't mean that the country will be rich. The more money that is printed, the more it is devalued which can lead to inflation of goods and services. The law of supply and demand also applies to money. The government will print what is just enough. Any country wants to avoid inflation that is why they can't just print money even if they want to.
I bet this is the first time OP read word Economics in his life and immediately asked question.
Print money and own as much as you want, still buy cocacola for 1$, icecream for 1$ and still the same prices on everything. Wow, sounds amazing but don't you know that as number of money grows, prices rises too? Haven't you ever heared about inflation?
But there is another answer too. There are times when goverment needs money and imagine what it does: It prints a lot of money, uses it for goverment's needs and then inflation comes where people have to pay for it. It's like goverment borrows money and people return.

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May 23, 2018, 08:45:26 PM
 #66

Because the more money you print, the more inflation happens to your country. The more money means that the country is weaker than other. They can only print money when they have some new gold store in the country's bank. Printing new money is the least thing they want to do

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May 23, 2018, 09:17:37 PM
 #67

why the state does not always make money, because if a country is printing too much money, the value of that currency will go down so it will cause more problems, that's why they prefer to owe rather than make money
that's right, if the state printing too much money is not solution to grown the economy of the country because it will making the economy worse and finally money of that country will lose its value. it also happen in Zimbabwe, Zimbabwe become the country with the worst inflation.
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May 23, 2018, 10:18:17 PM
 #68

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

Will,as my own knowing  the state  government  would cannot print easily a money because every money that   they created have an equivalent gold  fund in there on central bank, and thats why people using only credit card because its handle easily,and convinience,whenever you go around to buy eveythings that you needs and wants in life.and lastly its safe to used credit cards, or crypto coins  because its help you away from danger or harm.

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May 23, 2018, 10:21:41 PM
 #69

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

Yes, printing money will have an impact on the money itself. The government need to control printing because of some reasons is first the government limited the printing of money because they know that some people did not use it wisely, second, some people or businesses depend to the government help incomes to money. Third, printing money is not a solution to pay our debt in other countries we also need to circulate our economy when incomes to money.

And for sure government is also following some regulation or principle in printing money, just like as said by Todd Buchholz, printing too much money would just “temporarily make the people FEEL wealthier”.

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May 23, 2018, 11:44:14 PM
 #70

strange question, this is a junior high school exam question.
if the government keeps printing money, its value will decrease as in zimbabwe.
and the economy will be ruined.
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May 23, 2018, 11:53:45 PM
 #71

The state does not print money because printing more money can cause crisis.The price will fall down and it is known as inflation.Instead making the economy of certain country better it only cause trouble, as it is injected forcefully and free flow of economy.
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May 24, 2018, 12:00:43 AM
 #72

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?
I would say that this topic is getting more serious replies than i expected to the tax evasion case. lol

Anyway, they were right, the inflation will cause a serious damage if not treated will, i mean every prices of everything will going to rise and the effect is more terrible to the lowered class people. It will be a very hard time for a lowered class people to live with to those high class people because if they work their salary will not increase that much, so it could be hard for them to live in such country.


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May 24, 2018, 01:42:38 AM
 #73

every country must have certain rules, can not arbitrarily print large sums of money, because it is feared that the existing currency has a very low value if converted into the existing global currency. it certainly can be bad for the economy of a country.
EnricoGomez
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May 24, 2018, 01:45:33 AM
 #74

Simply because it will cause inflation.
Printing a lot of money over what is enough can significantly decrease its value, paper money literally becomes just paper.
The value of money depends on its demand-supply and there is no limit in printing money for countries, they can literally do it whenever and whatever volume they want unlike cryptocurrencies like bitcoin which has a limit and thus deflationary.
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May 24, 2018, 04:24:26 AM
 #75

You know, I have been asked this to myself also when I was pretty young, why the government not make a lot of money and give it to the people, for all people in society is rich and no one is poor. Now that I was older I have answered question of mine, why the goverment not making a lot of money, because the impact will fall the prices in world market and its economy, And why the goverent not make a lot of money and distribute it for the citizens, because you need to work and find for yourself and help the goverment to make the economy grow of a country.
   Like now look what happen of the price of bitcoin on the market, previously the bitcoin price is so high, but now the bitcoin prices was fall. And one reason why the bitcoin price was fall, because so much bitcoin in the market as of now.
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May 24, 2018, 04:31:21 AM
 #76

There is thing called trust where by the state declares that the pice of paper they call money is backed up by value. For example, if a country has 4 million worth in gold, then all their money combined will be worth 4 million. If a country just prints out money like they do with a photo copy then their money will lessen i value because if you combine all of a country's currency it will just add up to the country's backing.

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May 24, 2018, 04:34:24 AM
 #77

Each state needs to print money for the normal development of its economy in the amount of gold and currency reserves and material values in this state. Each year the state can print money only for the amount of the country's gross domestic income, that is, the amount of goods and services produced. If the state prints more money, then they simply depreciate and inflation occurs. Therefore, everything is needed in moderation.

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May 24, 2018, 04:45:53 AM
 #78

I think the reason or the answer was the values of those money will be go down and I think every single country has their own regulation to making money, actually this question was on my mind when I was 5th grade and I don't believe is still there any person who ask this kinda question nowadays.
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May 24, 2018, 04:52:07 AM
 #79

why the state does not print a lot of money? than debt to other countries. is not it easier to make money than debt and ultimately burdens the state?

whether if printing money will have an impact on the money itself? or will it impact the value of the money in the eyes of the world?

If the state would continue printing money then it would render the money worthless because there would be over supply of it and if many people have so much money, the prices of the good would go up because there would be shortage of supply of the goods since people would be able to afford it if they have more money and since they are willing to pay for a higher amount because they have more money then the price would go up resulting to inflation. If you observed what happen to Venezuela, they have millions worth of fiat but it become worthless because of hyperinflation. Central banks are there to control the prices and printing of money.

On the other hand, due to the fact that bitcoin has limited supply but more demand, it would result to a higher price which is why it is a lucrative choice of investment but if more people own it and it will become a legal tender then there would be no fluctuation of value anymore since there is no need to convert its value.

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Angela28
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May 24, 2018, 05:39:37 AM
 #80

They do not print much money because they are afraid that if they print out a lot of money they will lose money and inflation will be high, the government only prints the amount of money they think they have achieved. and stable
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