+742

When talking about economic depressions or recessions in social studies class, there is almost always that one person who has to ask "Why doesn't the government just print more money?", amirite?

99%Yeah You Are1%No Way
kellbellss avatar Education
Share
13 21
The voters have decided that kellbells is right! Vote on the post to say if you agree or disagree.

To be fair, we all used to think that.

Truuninjas avatar Truuninja Yeah You Are +21Reply

and then the 5 dorks yell "BECAUSE OF INFLATION! DUH"

It's a natural question to ask, if it's your first time taking the course (I never asked it, but I've taken a couple of economics classes and lots of people ask it).

@KickAss It's a natural question to ask, if it's your first time taking the course (I never asked it, but I've taken a...

I promise I'm not a ditz, but I actually don't understand. Would you mind explaining? Pretty please? :)

@musiclover I promise I'm not a ditz, but I actually don't understand. Would you mind explaining? Pretty please? :)

It leads to inflation and causes more problems than it solves.

Germany printed large amounts of money after WWI in order to pay back their "debt" (damages done by the war) to the Big Five. In led to the inflation of virtually everything (we're talking bread costing thousands of dollar) and hence, the entire country fell into a depression.

Lucky for them, the rest of the world followed shortly (for other reasons.)

But yes, money is relative. Printing more money doesn't make things more affordable. It just adds the amount of zero's to the price.

@musiclover Okay, thank you so much!

@1020141 (musiclover): Yup Etherial summed it up pretty good, more money = higher prices. In Germany, the people burned the money instead of fire wood, because the money was worthless. And it went into a state of hyper inflation, where one U.S. dollar would be worth a million billion gagizillion macknoellion dollars....

Oh the reason the rest of the world followed was because, Germany was paying France and Britain, France and Britain were paying U.S. and U.S. was loaning Germany. When the U.S. fell into depression (Black Tuesday and the stock market crashed) U.S. could no longer loan Germany and Germany could no longer pay G.B. or Fr and G.B. nor Fr could pay U.S. In case you didn't know, now you do and if you did, then it's been reinforced?

@also, money has to be backed up by gold

Umm, I'm almost positive there isn't enough gold to back up the amount of money the U.S. owes.... I'm not up to date on this, but I'm pretty sure the Gold Standard ended with Nixon?

@idk my teacher two years ago said we did sorry if thats inaccurate

Really? Well, I'd take your teachers word over mine... SIKE! Your teacher's an IDIOT!!! No I'm kidding, but seriously I'm no econ major, I don't know what I'm talking about, you should find out! Do a lil private investigation!

Um, but it would solve everything.

/troll

I thought that too, when I was younger. I don't know a lot about economics, but at least I know about inflation.

Anonymous +3Reply

aww sadd....for the longest that was mee....but s'okay because i've learned since then, and no longer ask that question B) lol ...but still, there's that other kid that sits behind... -_-

Chelsea_Smiles avatar Chelsea_Smile Yeah You Are +1Reply

That's basically what they did with the quantitative easing for this recession. Unfortunately, it didn't actually solve anything.

If printing more $ causes inflation, why dont they add to whatever makes the money worth its price? like in america, money is worth its price because of the gold in this one place (i forget where). so why dont you add to the gold, and print more money?

@mchalla3 If printing more $ causes inflation, why dont they add to whatever makes the money worth its price? like in...

add gold? we can't add gold we don't have.. We can't just decide how much we're worth.

jaimiee16s avatar jaimiee16 Yeah You Are +2Reply
@jaimiee16 add gold? we can't add gold we don't have.. We can't just decide how much we're worth.

can't we mine it? or go to war with another country?

I'm only joking XD i see your point

@jaimiee16 add gold? we can't add gold we don't have.. We can't just decide how much we're worth.

): i was really suprised every one was going on about inflation and it took a while for anyone to say money needs to be backed up by gold

Anonymous 0Reply

It really annoys me because it's the most stupid question.

Kaitlyns avatar Kaitlyn Yeah You Are -5Reply
Please   login   or signup   to leave a comment.