Why Not Print More Money?

Why Not Print More Money?

Why Not Print More Money?
The government can print money. Why doesn’t it just print some and hand it out? Certainly
this would alleviate poverty and stimulate the economy. Modern economies use money so
intensely that sometimes we forget what money is. Let’s go back and look at why money was
invented. Before the invention of money, people exchanged
things that they produced for things that other people produced. We call this barter.
Barter is very inefficient, because you have to find someone who not only has what you
want but wants what you have. Economists call this the double incidence of wants problem.
Another problem with barter is that it becomes difficult to save up what you produce. Our
caveman would never have been able to save up for college. Not just because colleges
didn’t exist, but because four years of tuition would cost 40,000 chickens. As our caveman’s
chickens hatch, he puts them in a pen. Over time, he adds more and more chickens. But
as time passes, the first chickens grow old and die. Our caveman is never able to save
for college because chickens don’t last long enough for him to save up enough chickens
to pay for college. Economists call this the retention of value problem.
Money solves both the incidence of wants problem and the retention of value problem. Money
is simply an I.O.U. that people can keep and exchange more easily than they can keep and
exchange physical goods. With money, any caveman can trade with any other caveman, regardless
of what they produce, because now the first person has to want what the second person
has, but the second person doesn’t need to want what the first person has. He can use
the money to buy from someone else. Money also solves the retention of value problem.
Our caveman can raise and sell chickens and put his money under a rock. He can keep doing
this as long as he likes because the money doesn’t deteriorate. When he’s saved enough,
he can go buy something expensive. Now that we remember why we invented money
in the first place, it becomes clear why printing money won’t make people richer. Money is valuable
because people will give you goods and services in exchange for the money. Money derives its
value from the goods and services. Printing more money doesn’t make more goods
and services appear. It simply spreads the value of the existing goods and services around
a larger number of dollars. We call this inflation. The average price level is like the number
of dollar bills divided by the number of goods and serves. Ultimately, doubling the number
of dollar bills simply doubles prices. If everyone has twice as much money but everything
costs twice as much as it did before, people aren’t better off. People aren’t better off
because our wealth comes not from money, but from the goods and services money buys.

99 thoughts on “Why Not Print More Money?

  1. This is simple but should be he basis of understanding the concept and operation of money in economies at it's fundamental level. Nothing changes this concept but loss of this conceptual understanding leads to a lot of misunderstandings and illusions whivh these concepts can help to quickly disprove..  

  2. As long as it costs more to have a job than it pays, we will have to go on building jails. If we stop printing money, we have to close the jails. and if we can't jail people  then we can't force them to work for wages either. Surprisingly enough it sounds, like the rats are beginning to rattle this cage and when the door finally springs open..,Holy #@&%!!!

  3. What if the government only prints additional money exclusively for its own use? like paying bills and government workers wages. Will it still cause inflation?

  4. they don't print money they print currency , money has to have a store of value for a long period of time e.g gold , currency does not have this quality it devalues over time . currency used to be a claim check for money (gold) that's why the banks store gold , most banks and experts don't even know what money is .

  5. 3 centuries ago there was a system of banking perfected that gave untold wealth to its owners. The system is comprised of counterfeiting money, loaning it, and allowing the economy to become dependent on the counterfeiting.  The system was imported to the Americas and have been the guiding factor in the politics and  economics of this country. The bank owners device a system where they control the creation of money. if the government wanted new money they had to exchange it with a debt instrument and pay interest, if the public wanted new money they have to get a loan and pay interest to the bank. if neither decide to borrow the money supply will shrink exponentially to a mere 3% or to the base money supply, causing an economic collapse. No jobs, no one could pay their bills, no commerce. The basic system is set up this way and guarded in secrecy because the banks control the media and the schools. All the popular information out there safeguards this great secret of how the banks have a monopoly on the creation of money. Not every single bank is into this conspiracy but certain insider banks. This is the main purpose of the Federal Reserve Bank, to help certain insider bank to have a monopoly on the use of money. The Federal Reserve is not set up to profit but rather to help a few insider banks benefit. They are the ones profiting and the ones calling the shots. They insider banks could do it without the Federal Reserve but the Federal Reserve is rather convenient to them. The Federal Reserve is a tool that these insider banks use to bring about governmental authority to their actions. 

    I should add that now the system is global and they are using the American military to spread it.  These bankers want to give value to the paper currency by pegging it to goods and natural resources.  Any country that wants monetary independence, are destroyed by speculators, or by NATO.  Russia apparently have long fallen to these bankers.

  6. So why not increase the payout? Since there is more money, why not increase the minimum wage so that people can pay for the inflated goods.

  7. The money being printed is being held by the banks to prevent inflation from happening. Prices don't increase because of the money that has been printed. Prices are set based on what people are willing to pay for a certain item.

  8. The supposed barter economy described in this video is a fabrication, a founding myth completely unsupported by historical evidence. This YouTube channel is Answers in Genesis for libertarians.

  9. But why do we let private banks create as much money out of noting as they like? Which causes massive inflation, especially in housing? Then the nation gets enslaved to the bankers, aka, the 1%, aka, the ruling class who own the banks. Why don't we create our money supply ourselves, and at almost cost free, through a public body instead, or at local regional public banks. It 's easy to keep inflation down by only making enough to cover the country's transactions and no more. Don't listen to bankers who try tell you that public created money causes inflation, because they are bound to tell you that, aren't they, as they have an ulterior motive (they want you give them loads of your hard earned money – for nothing? Google for the free book, Billions For The Bankers, Debts For The Rest Of Us, by Sheldon Emry, an evangelical Christian. A really nice guy. From the back cover of his book:

    Billions For the Bankers And Debts For The People:

    What if?

    .What if you were no longer required to pay income tax on your salary, profit on the sale of your private residence or inheritance tax.

    .What if all Americans' living standards could be increased 25-30% without any increase in man hours worked or increased taxes.
    What if Medicare and Social Security were completely funded with no increase in taxes.

    .What if the possibility of going to war could be reduced by 80-90%.

    .What if unemployment dropped to near zero.

    From inside the book:

    War and religion can be used to conquer a nation but it doesn't last.

    The third method can be called economic conquest. It takes place where nations are placed under 'tribute' without the use of visible force or coercion, so that the victims do not realise do not realise that they have been conquered….

  10. We had a discussion about our massive national debt in class one day.
    My friend asked "why don't we just reset the debt clock?"
    my head wanted to explode from the stupidity

  11. "Before the invention of money, people exchanged things they produced for things other people produced."

    No, they didn't. The economists' "money from barter" theory is a fairy tale with no supporting evidence and in fact the vast bulk of evidence suggests money was invented through different processes.

  12. I checked this online video since I was searching lot of Online earning method Than I find PanXcash. Money does not issue to myself I am having a huge paycheck of Money. PanXcash is excellent method to earn online. I must advise you PanXcash.

  13. You mean "Why not print more currency?" The US dollar does not fulfill all the requirements to be classified as money. Even then printing more currency is what the US government does and will always do.

  14. Another thing to consider is that if there is too much money out there without us knowing it, goods get sold too often and we run out of resources needed to produce those goods pretty soon.

  15. Prof Antony Davies is an idiot and evil and hateful and loves poverty. He is a professor of fraud and idiocy.

    If you want the truth. See the Keiser Report. Find the truth. Dr R.Wolff.

  16. but still there is a great problem with money that is, it is inherently of no value and it works with mathematical accuracy or constrain.

  17. Actually he is not completely right. Money was invented so that the government could tax the people and direct the use of money.

  18. Money was invented to store surplus value, after it was extracted from the human body. The human body itself was a vessel and labor the mechanism for setting the market free by giving those without capital, a  choice between labor and starvation. Under a free market regime, obviously all prosper and everyone is free. Democracy disrupts the natural order of things by which planning and production is organized for the benefit of the ownership. The free market is the will of nature that insures the inferior races perish in servitude and the free market dominate the earth. Capitalist utopians grasp the fundamental truth that there is no room for politics or public deliberation concerning distribution or production because there can be no legitimate place for the public interest or conflict in a materialist utopia.

  19. Da ….. Cavemen never went to College and money never deteriorates but inflation takes all the value out of what you have saved ! oops

  20. Maybe this doesn't get into depth with economics, but it is basic and will answer the question, "Why not just print more money?" when my Junior High kiddos ask.

  21. 1 peso coin in Philippines is an equivalent of 2pennies in the United States…but the shape and thickness of a 1peso coin is the same as a quarter in United States…thats why when i have a vacation in the Philippines I make sure i bring home a lot of 1peso coins.

  22. Since the U.S government printed way more money than it really has. Since the U.S Debt is higher than the World economy.

    Shouldn't the question be: Why don't we stop printing money that is bonded to an absurd Debt?

  23. The Fed purchases bonds rather than simply print money and give it out because it can then sell those bonds to contain inflation.

  24. Money does not solve retention of value long term as long as we have inflation..that might be changing now that we are heading towards deflation….

  25. But money is all in our heads. We can change the value of something at any time we like…its called yard sales (etc). Its all an invention to keep us inline and not see our true selves. Inflation is also a man made concept. So can't we get rid of inflation?

    Instead of someone commenting that im a moron for saying this can you give me a logical reason as to why I am wrong

  26. A good video, but he's describing Fiat currency, not money. True money is created through work and has intrinsic value, such as a gold coin. Someone must mine it (the work) and the gold is the intrinsic value. So money is NOT an IOU but an exchange of value, that's why people will exchange gold for beer. Fiat currency on the other hand is an IOU. It has no value, other than what the government says. Also you can not save value in fiat currency, see Zimbabwe for why you shouldn't. But a 2000 year old Roman gold coin still has value today.

  27. it doesnt explain why the US is printing money from the GFC onwards …. and its why the Fed has trouble lifting interest rates (which it should of lifted – it was only pressure from corporations) … deficit spending means that the banking reserve system ends up with excess cash … excess cash puts downward pressure on interest rates … the feds job is to control interest rates.
    I dont agree with this guy at all.

  28. This video is about CURRENCY not money. Money has to fulfill 4 criteria..1) Something at least 2 people agree that it is. 2) A medium of exchange. 3) Easily and evenly devisable. 4) A storage of wealth. Our paper, fiat currency system fulfills all but the last… it is NOT a storage of wealth…. Inflation is a loss of the purchasing power of the currency and we see that in the rising costs of goods and services. Watch this .. https://www.youtube.com/watch?v=jqvKjsIxT_8

  29. Unless the more money printed was handed out freely, the inflation from that never jived for me. Using it to pay off debts and services could spike the economy, but not that of Zimbabwe levels. There's an undertone there that's not transparent.

  30. Ok, i understand all of the economics behind the money supply; inflation and so fourth; however, i was asked a question which perplexed me a little bit considering most of what i learned about money supply in taught over large scale money printing (in the billions) Surely, by printing £20 million and giving it to hospitals paying for staff to remove any need to cut jobs surely would not cause inflation in an economy worth $3 Trillion? Anybody mind explaining why this may be wrong?

  31. Fact – in past hyper-inflations, people who had cash lost-out, but people who had purchased things before the hyper-inflation actually came out ahead.


  33. I still dont understand. This is to answer what if govnt print more money and give it to people (distribute it in many other ways) so all people are aware. But What if you as individual working in a money printing factory. Then u print money for yourself like $10000 but no one knows what u did, i mean its only u who is aware of that. Do that money u print will have a value?

  34. Printing money backed by NOTHING causes inflation. ("Money" backed with nothing is actually called 'fiat currency", btw) On the other hand, printing money backed with GOODS AND SERVICES would not cause inflation, because there would always be an equal amount of goods and services to match the amount of printed money. An example of money backed with a good or service is typically called a "gift certificate" or "promissory note", and you have the power and ability to print and issue both.

  35. No! The caveman pays for college with the chickens as he goes. He still works his chicken farm in his time out of college just as students work part time jobs to pay for college. Why does he have to "save up" chickens? College professors still eat chickens. That is why the chicken crossed the road ie to take the caveman to the professor.
    I dispute the claim that printing more money doesn't make more goods and services appear. In fact with the confidence of more money availability people will be driven to develop ways of producing more goods and services.
    Prices increase because of greed which is the real cause of inflation from what i can understand.

  36. Handing out money without doing work to add to the GDP would create hyper-inflation. We saw this in the early days of fiat currency in Europe and Zimbabwe.

    However, this narrator is forgetting that inflation is measured off of the PRICE index, not the dilution ratio of money. Theoretically, as long as the printed money is not just freely handed out to the public then the money would not cause inflation.

    The perfect test for this theory is obviously quantitative easing. We created trillions of dollars extra but it was not given to consumers. It was given to get rid of bad assets hindering the economy. Hence, inflation was not an issue. Inflation is ALWAYS tied to supply and demand and if consumers do not have more money to create more demand then prices will not go up and neither will inflation.

  37. Money did not solve entirely the coincidence of wants.  There are people who want stuff but don't have the money the other party wants and vice versa.

  38. everyone has unlimited money. people do what they love. world is happy place… fund all science… end all disease… fund all defense system technology… we are forever safe and protected…. ignorance will not move humans forward…. you all know this….

  39. I am 63 and don''t get any pension. Earlier I get 48000 quarterly as interest on my fixed deposits, now getting only 38200 quarterly on the same amount, though cost of medical and other expenses rising every month. What is the future of people like me who saved money for their old age ?

  40. personal opinion hope no one mind it, the whole point from the video is printing more money wont simple help people to get richer cuz products price will raise considerably too but if the government just print them and hand to the poors i think it can work out. also why the goods price will raise? the price of something are we human name it. so if the world bank money printer or some money printer organization make more money while the government take care of goods price. i think it will work out. that's all. i found out that few words up there are not spelled right but hope u guys get what i mean

  41. Money as a barter intermediary commodity is NOT how money came about or works. Why do people insist on repeating this old fairy tail when we know how it really came about and works today. Then again this entire channel is full of videos made with the economic understanding of a toothpick. Bad video, bad channel.

  42. In the end its to control and create sectors of class and social order. The only way this created money system would not be sadistic is if you could only store a certain amount of money for a certain period of time and had to spend it to keep it flowing throughout the community and businesses so the economy could be fair and if prices for goods and services were set across the board. This way you couldn't sit in a corner and store trillions. This creates that classism, boosted economic platform for some and poverty for others. Its all a created system, an interesting idea at conception but its taken a complete nose dive at this point.

  43. I have a question.

    What if you print a grant of 100mil. With said money, use it to create more jobs. Would that still create inflation?

    For example: Let's say a construction job is 20$ an hour. Using that grant gives an additional x amount of new construction jobs that still pay the same wage.

    As an additional question. Should labor be seen as the representation of money, in the seen light that gold was.

    It seems that counties that printed more money were already in a bind as it was, and would've ended in that mess one way or another.

    Thanks to anyone who takes the time to answer my question. If you want me to elaborate more feel free to ask away.

    Thanks again.

  44. Generally well done, but there is no good evidence for a barter society. It is far more likely that societies used debt based systems prior to the invention of money and that money was just a natural outgrowth of societies increasing in size and a need to keep better track of who owed and who was owed.

  45. Our governments print money all the time without causing inflation. Other countries print too much and it causes inflation. If governments stopped printing all together we would go through a deflation worse than the 1930s

  46. When I was a child, I really didn't understand, why the government doesn't print more money. I mean, for me it was illegal, but the government can do that, right?

  47. This is why I hate our money system. Our Money system had no value to someone who is Disabled & on a Low Fixed Income. Some people can work but some Can't. We need a Pay It Forward System. In order to be allowed to Print Money we need to have a Balance of SAVINGS. The more you SAVE the More you EARN. If we got rid of Sub-Minim-Wage for People With Disabilities (PWD) & Minim Wage & Based how much you could earn at a Job if your working depending on how much you SAVED. This system works in Thirds. The First third is called the:
    (BMI) Basic Minim Income. This is based off of what your Basic needs are & those things that are considered as Rights to stay alive. This is the Needs Section.
    The Second Third is called the:
    (PSA) Permanent Savings Account. This is the part of a persons Income & what helps determine how much someones BMI is set at and whether they will receive a certain dollar amount. The more a person SAVES the More you bring in depending on how much you work if you work or if you are Disabled & can work Limited or not at all. No matter who you are as long as your a US Citizen & you live & work or are Allowed to be & work in the US this will apply to you.
    The Third, Third is called the:
    (FSA) Free Spending Allowance. This is for things that you Want but don't need on a regular basis. This amount is so when you go out to Dinner & a Movie etc & spend Money, your putting Value back into the Community. This is a Paycheck to a person who is Working. Without this Third the community would stop operating & the Economy would CRASH. This will allow people who are working to do the same as someone who is not able to work at all but make it affordable across the board for All. The good the good thing with this system is everyone can Save money & this will the US to be allowed to Print more money that can go back into the Economy. Just like Income to Credit Ratio. If someone barely spends any of their FSA & they do nothing but save this is not good. If a person barely Saves but spends so much this is not good.
    If you are a PWD & you have been saving money each month & you maybe one month you didn't go out and you have an extra couple of hundred dollars left over and you put it in your PSA no later than the 25th of each month then it will be counted as money saved during the current month. Four times a year you will get a little raise & once a year is when everyone's review is up to let you know if your getting more money & if you save then all Three Thirds will go up. This means that if a person starts out with a BMI of Ont Thousand dollars then the minim income you will receive is the Three Thousand. The next year you may get a BMI of One Thousand Five Hundred Dollars this means that you will get the same for the other Two Thirds of your Income. You have more to spend & Save which puts more value to the money & money no longer will be printed out of thin air. The PSA is designed to create Value the same way you would of done it when the US use to use the Gold System.
    This system is designed so if a person was to lose their job & it wasn't their fault the Government would help Subsidize the persons Income so they will not have to start dropping services which will hurt the Economy & chances for people to Save & Spend their money which will act as a Domino Effect. This is a much fairer system because it won't keep the very Few Rich, Richer & the Many Poor, Poorer. This will get rid of Poverty as we know it. This as well will mean people are not working because they Have to but they are really working because they WANT TO! I as well believe that it is Important to change the Work Day for a single person. This would mean that for a person with out a Disability would have a MAX work Day & Week of From.
    F 8HPD, 5DPW – T 6HPD, 4DPW. If you have a Disability your MAX Work Day & Week is follows,
    F 8HPD, 5DPW – T 3HPD, 2DPW. This will allow more time to live your life & people will not be as stressed out. This as well will allow you to spend time with your Family & Friends plus it will allow more people who do not have a job to get a job.
    I believe that we Need & MUST make a major CHANGE! If we don't we are going to hurt all of ourselves & this country. I truly believe that Money Is A Form Of SLAVERY!
    What Party would these Values Follow?
    REP, DEM, Green, LIB, CON, Fill In The BLANK __________.

  48. Ok but we need to print more money. Why do we get new editions of existing bills, and why isn't that causing massive inflation every time a new design comes out


  50. He is good at brainwashing masses. get outa of the dark ages, the banks do print more money, you and the government dont because you are all their slaves.

  51. You forgot to mention that money used to be backed by gold, now it's just fiat currency. So now we trade goods and services for worthless paper. Now we trade our life energy for worthless bits of paper and the government gets to tax us.

    Seems like madness ….

  52. Not only this was helpful but also it was fun to watch, I think that 1 example helps people understand more than explaining with thousands words without example. Thank you, Wish you the best

  53. Its not only the printing of the money that counts, the intelligent and socialy acceptable spending. Putting money in people hands, not in company/banks that sends it to Panama. People spends it so the economy gets a boost and the positive cycle starts. No unemployed. Unemployed that the private sector does not want work for the government for a while at least. Then get rehired by the private sector as they are back in the game, active, with experience. To much money, some inflation? The Gov taxes more to drain a bit. Bit of a downturn, recession? The Gov hire and lowers taxes. Thx

  54. I agree, mostly. As inflation increases, the relative cost of your fixed mortgage goes down, and that’s a pretty large chunk of most people’s monthly expenses,

  55. "Cavemen aren't able to save for college because chickens don't last long enough"

  56. Bullshit! The Canadian government used to print money in the 1970's if needed. For example they would have new money printed for such things as social programs. It didn't change a thing. It is ROTHSCHILD who manufactures all financial crisis. He has his tentacles every where. Rothschild is the worst SINNER on the (flat) earth. The Lord GOD rebuke Rothschild, Amen! Remember the Bible says, The Love of money is the root of all Evil. He loves money the most, therefore he is Evil.

  57. My sister said this once in an argument about the economy, I just oh boyed my way out of the argument and ended it right there

  58. this explain why you can't print money to everyone. but what if i just printed 1 million alone and kept it for myself. I would be a millionaire just like that and the world doesn't know.-

  59. If a government prints more money and gives it to poor then demand goes up while rich people became less rich due to inflation and will be forced to invest they money in order to save them. Obviously printing money is great! But not too much.

  60. printing money is a tax on savings, actually its stealing because your savings have less buying power, the government should only print money once and never again, unless in the far far far future if the majority of money has been destroyed then i'm not opposed to reprinting money, but they shouldn't just print money.

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