buster
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Banks don't print money, the mint does and then lends it to the banks with interest charged (like a loan).
The mint has to limit the loans as more money printed the less its worth.
When lots of money is printed, more people take out loans from the bank because more money is around to borrow.
Hence house prices increase as more people can take out bigger loans as more cash is printed.
So printing more cash will make people poor not rich.
Read up on the 'Northern Rock bank' situation.
Kevin s is right, but no longer does the bank note state its worth that amount in gold. This was changed many years ago, so you can no longer go into the bank and get the equivalent in gold. I think this was changed about 50 years ago or more.
Its supply and demand. low supply high value, or high supply low value.
Think of it like this, if you were a multi millionaire would you get out of bed for a job paying minimum wages?
No because minimum wages would be worth almost nothing to you.
So if everybody was a multi millionaire no one would work, and wages would have to increase, and everything would cost more because of increased labor wages.
A loaf of bread would end up costing £50. and so on.
hence the money is worth less. |
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Jeremy B
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because then the value of the dollar would plummet and we would all be poor. if everyone has a lot of money, then it's worthless. |
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pretzel2222
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This is why it is important to listen in class. |
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DAVE P
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The more you print the less it's worth. |
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Nathan
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Because real assets are the only thing that makes a country/society wealthy. Money is there to only facilitate the exchange of them.
If we printed lots of money, prices would go up proportionally and then we'd have to start working again to pay for everything. |
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The Prince
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There has to be something that gives money its value. There's a whole lot of economics behind the value of money, but if it was just a piece of "paper" it would be worthless. That being said, the more paper money there is floating around, the less each piece is worth. If banks did what you said, everyone would be poorer, not richer.
It's very similar to what happened in the south after the American Civil War. They financed much of the war by printing money, but without anything to back it, so by the end of the war the Confederacy's money was nearly worthless. |
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sleighton78
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some banks in some countries print money...
Basically stuff is only worth a lot of it is rare...
Like gold or diamonds are very expensive because they are hard to find, or take a lot of work to make
Something like bread or corn is cheap because there is a lot of it and it is quite easy to make.
Same with money... the more you print the less it is worth. |
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heybulldog
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Everyone would quit working so that they would be poor so they could get free money. |
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C
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Most people have mentioned the reasons I would say, and there would be no point in repeating it, so all i am going to say, is that if we all had money, and enough money to survive until we die, we would just be wasting our lives. No one owuld work, so we wouldnt have anything to do. No one would want to make clothes anymore, so no one would be able to be shop assitants, so no one would be able to buy any clothes, because there wouldnt be any there. You wouldnt be able to buy food, because no one would be making it, packaging it, selling it. Our whole world would collapse |
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Matt B
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Firstly its not the banks that print money.
Secondly if more and more money is printed then the value of the currency would go down which would damage the economy. |
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allen555
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Because that causes hyper-inflation. |
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wkc
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That will cause hyper inflation. It means too much money chasing too few goods. You will soon find that 1000 won't buy you say a cup of coffee. Not only just hyper inflation, the whole country will then turned upside down.
The value of the money on hand comes from the work/service you have done. If people got their money for free, then the money is of no value. Then people will rush for gold instead. Conclusion is work hard and provide more value to others. |
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kevin s
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if you look on any bank note it says it is only a promise to pay the bearer on demand.banks need gold to print money and so they can not make notes at will |
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XoxoxoxoX
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hum..it all about world economic, and NO, banks don't print money. The fed does. |
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Spock (rhp)
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under socialism, everyone is poor together. [except the bosses, of course].
so, if you want the opportunity to be more than poor, you have to work and you get paid based on what your work is worth, not on your pipe dreams. |
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jamez2000
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You need to read a book on Economics to understand that one.
In World War 2 the germans planned to flood England with fake money in order to de-stabilise the economy. |
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Dynamic Duo
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because the idea is to dish it out to themselves. They don't care about you |
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just me
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you know what else i think? that somehow heat in the winter and cool air in the summer should just come traditionally in your house and NOT be paid for.it's just a necessity of life and to many people die for not being able to have it.elderly die from heat and cold. |
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Princess B2B 29/11/08
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i asked my bf that and he said cos then noone would be poor and do the crappy jobs like be a cleaner etc cos they wouldnt have to and money would have no worth cos there would be loads of it. |
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