I searched this up and there were a few posts about it but none solved it for me.
I genuinely don’t understand why the world can’t just print more money. Every time someone explains it I think of holes later on. Why can’t countries simply say okay for a period no one is allowed to inflate prices, wages stay the same cost of production stays the same, but the government prints money to use as an allowance for everyone. Like for me money is just a human made concept so I don’t get why we can’t change the rules and move the goalposts so that it actually works in people’s favour instead of causing mass economic disparity in society.
Why can’t we just print more money?
byu/SwanTraditional6912 inAskEconomics
Posted by SwanTraditional6912
1 Comment
1. you give people money, but the economy is running at around full capacity, so no new stuff is produced
2. people have more money, so they try to spend their money. this pushes up the price of stuff
3. you say, “let’s ban increasing the price of stuff”. now prices don’t increase
4. however, since you don’t have more stuff, you get shortages; some people want to spend their money, but there’s nothing to spend it on