The world is short of money.. why don't the banks just print more for those who need it?

Question

but i would promise i would only give it to poor people!

Answer 1

You only need to look at Zimbabwe right now to see where that idea would lead.

The German government did exactly that in the lead up to the second world war. There is a story that someone left a suitcase full of money on a railway platform and when they came back for it, only the suitcase had been stolen, the money was so worthless it wasn't even worth stealing.

Answer 2

Money is a paper representation of value for goods and services.  If you increase the quantity of it without matching gains in productivity than you don't change the real amount available at all just the quantity and the prices its exchange is valued at.

Answer 3

Well the banks actually can't print more money. Only the government can order the printing of money thourough government mints. But the government is actually doing just that. They are printing more money but thats part of the problem. Ever wonder why your parents say that they remember when sodas were like a quarter? This is why. Printing more money causes inflation, or more simply put, the value of money goes down. So you dollar is worth less every time the government prints more money.

Answer 4

it can lead to hyperinflation like what happened in n**i germany

Answer 5

i heard that it costs more than a penny just to print a penny. believe it or not that's wat i heard. it is really expensive to make money these days, that the way prices are going up, inflation it gettin really big here in the USA> which is really bad! i also wish that we could have more money. i mean people are spendin money on little things, like bizarre not really neccassary items, instead of fixing levis and bridges or makin shelters for the poor. this entire system is in a mess! we need to gather ourselves up and fix it! pluz global warming! we destroyed earth's environment really quickly! we are like speeding things up here too fast then they used to back in the dinosaur period! it's horrible. i dont know wat will happen to us in the future, but i hope someon could fix it, right now i believe it's up to GOD and if we beileve in him, he could help us. hoped this help! : )

Answer 6

cause their all retarded a******s and and they don't want us to have anything.[:...but really i wash it was that easy!

Answer 7

printing money is not easy

to print money the country must be able to have the amount

the usaually have money has gold

the amount of gold in america is the amount of money they can print

Answer 8

That's been tried before, you know. For example, in the Civil War the southern states were printing money as fast as they could crank it out. But the more worthless cash you put into the system, the more of that cash it takes to buy anything. This is a very basic concept taught in beginners' economic classes.

Answer 9

Because then the paper money would be worthless.

Money has no value in of itself; it is only valuable if there is something for you to BUY with it.  Printing more money does not automatically create more food and/or goods in the world.

If you print more money, the price of everything will just go up to compensate for the fact that we have too much money, and not enough stuff.

Answer 10

We did that already. When Bush ordered Bernake to lower interest rates- that IS printing more money.

and the more money there is in circulation= the less its worth (record low US dollar vs. Euro)

and since oil is traded in US dollars, they demand MORE of these devalued dollars for their product

THUS

GAS PRICES THROUGH THE ROOF

see how it works?

Answer 11

That would fix all our problems wouldn't it?!  Something you have to remember is that in order to ''print'' money, there has to be something actually backing it up in value.  Usually gold.  If there isn't the gold to back up the dollar, than the dollar really isn't worth a whole dollar, is it?  Less greed in the country is what would solve the problem, not more money.  The people that actually NEED it, will never get help.

Answer 12

Because it makes the currency and the econemy weeker, things arn't worth as much and this causes worse problems

Answer 13

Printing more money may seem like a quick and easy solution but it is actually worse. The more money that is produced, the less value the dollar holds. Its a simple example of inflation and supply and demand.

Think about it like a baseball card. The more people that own this card, the greater drop in value. If only five people owned this card- the value is increased due to the HIGH DEMAND for this card.

By putting more cash into peoples hands, the higher prices do follow! With the lower cash value, the product will gain value.....meaning less product for more buck!

Answer 14

wot for so the government can take it away just as fast

Answer 15

you need something valuable to back up the paper money... if you just print more it is as valuable a notebook paper but much more expensive to make

Answer 16

This has been done in the past with horrible results!  Because paper money has to be backed by assets of the government issuing the money, printing more money without acquiring more assets (gold, etc) leads to a lower value of each individual dollar (or deutchmark, lira, euro, etc).  The result is runaway inflation like was seen in 1920's Germany (500,000,000 marks for a loaf of bread) and the Confederacy in the 1860s.  

In short, printing more money helps nobody because then there is more money around and prices go up accordingly.

Answer 17

Because then the purpose of working and earning a bit would be meaninglessness. UNLESS of course, they only printed money for like groceries and stuff. Hey, good idea :)

*But then again we DO have food stamps for those who are struggling to afford food. And donation centers for the actual dollar that, as an answerer said, you need something to back it up with, not just the ink.

Answer 18

Because then the prices of everything would just increase because now there is more money in the world to pay for it.

Inflation.

Answer 19

The more money (i.e. paper notes or coins) there are in an economy, the less value they become, and this is reflected in inflation (i.e. the rise in average prices from one year to the next).

Think of it this way. Let's say I have ten pieces of gold. Now, every dollar is worth a piece of gold and we have ten dollars in total. Then, we now introduce 100 dollars instead of 10. Now, a piece of gold is currently worth 10 dollars.

Hope that helps. It's not really as simple as just printing out more money. Everyone would be happy as Larry if that was the case.

Answer 20

That's pretty much what they do (not the banks, of course, but the government).  Our money really isn't based on anything any more, we are trillions of dollars in debt.

Answer 21

It will become worthless! The fact that it's scarce is what gives money its value!

Answer 22

1.  In most countries, banks don't print money anymore.  The government does.  

2.  Printing money devalues it.  If you print twice as much money, then it's only worth half as much.

3.  The world isn't short of money.  Parts of the world have a higher standard of living than others.  If a poor country prints more money, that will not increase their standard of living, only decrease the value of that money.

Answer 23

I always thought that money grows on trees, so just plant more money trees, there you are,,,,EASY.

Answer 24

There's a lot of greed in this world. If money was printed for the poor, some of  the greedy  rich , would still find a way to get a piece of it.

Answer 25

That's exactly what i was thinking, There's homeless people out there and all they do is say "we can not do anything" or  "there is nothing we can do", They could offer them a job? (Because if they began to give out free money it could start a riot)

You know?

Its very Bumish

Lol

xx

Answer 26

because it makes our money worth less so the more they print the less each bill is worth in other countries and things because its not backed up by gold like it used to be

Answer 27

they can't because every dollar is based on a gold system! Each dollar they print they put that much gold into the countres wealth. Otherwise there will be mas hysteria like in tha past with other countries where money is so worthless people used it to burn fire and keep them warm. It happened in Russia when stalin just printed out money without any gold. I heard a story where a man walked into a bakery with a basket full of cash to buy a loaf of bread and another man came up to him and left the money but took the bread.

Answer 28

Well, look at it this way: Bob has a semi-well paying job at a, say, food packaging business. Bob sees that if he's homeless, he can get free money without working, so he quits his job. Thats one less person packaging food. Sarah does the same as Bob, Mike does the same as Sarah, and so on. Then who's left to package the food? If there's no food, they die anyway. Working for food balances things out. That's why some people (not saying that I'm this way, but there are some cruel people who are) don't feel pity for people without jobs who have the potential to work.

I've thought this way before too. Actually, if you read Stephenie Meyer's book "The Host", the society which is created is the opposite of this; everyone works, there is no money, and everyone only takes what they need. It would be perfect, if humans weren't greedy pigs who took more than they needed and didn't work since they could get necessities for free.

Wow, I got sidetracked on that one, lol.

Answer 29

who is to define the word "need" its not the amount of money thats the issue, its the distrubution of it.

Answer 30

I ask myself that question every time i hear the words "credit crunch" i dont get it either.

Answer 31

The world is short of everything, including time.  Time is money, remember.