the power of congress to print money is one of the legislative This is a topic that many people are looking for. bluevelvetrestaurant.com is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, bluevelvetrestaurant.com would like to introduce to you Why Not Print More Money?. Following along are instructions in the video below:
“Not print more money nthe government can print money. Why doesn t it just print. Print. Some and hand it out certainly nthis would alleviate poverty and stimulate the economy economies use money.
So nintensely that sometimes we forget what money is let s go back. And look at why money was ninvented before the invention of money people exchanged nthings that they produced for things that other people produced. We call this barter nbarter is very inefficient. Because you have to find someone who not only has what you nwant.
But wants what you have economists call this the double incidence of wants problem nanother problem with barter is that it becomes difficult to save up what you produce our ncaveman would never have been able to save up for college..
Not just because colleges ndidn t. Exist but because four years of tuition would cost 40000. Chickens as our caveman s nchickens hatch. He puts them in a pen over time he adds more and more chickens.
But nas time passes. The first chickens grow old and die. Our caveman is never able to save nfor college. Because chickens don t last long enough for him to save up enough chickens.
Nto pay for college economists call this the retention of value problem..
Nmoney solves. Both the incidence of. Wants problem and the retention of. Value problem.
Money nis simply an iou. That people can keep and exchange more easily than they can keep and nexchange physical goods with money any caveman can trade with any other caveman regardless nof what they produce because now the first person has to want what the second person nhas. But the second person doesn t need to want what the first person has he can use nthe money to buy from someone else. Money also solves the retention of value problem.
Nour caveman can raise and sell chickens and put his money under a rock..
He can keep doing nthis as long as he likes because the money doesn t deteriorate when he s saved enough nhe can go buy something expensive now that we remember why we invented money nin. The first place it becomes clear. Why printing money won t make people richer money is valuable nbecause. People will give you goods and services in exchange for the money money derives its nvalue from the goods and services printing.
More money doesn t make more goods nand services appear. It simply spreads the value of the existing goods and services around na larger number of dollars. We call this inflation. The average price level is like the number nof dollar bills.
Divided by the number of goods and serves ultimately..
Doubling the number nof dollar bills. Simply doubles prices. If everyone has twice as much money. But everything ncosts twice as much as it did before people aren t better off people aren t better off nbecause our wealth comes not from money.
But ” ..
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