Where does money come from?

2016-05-21 3:45 am
I mean, why cant the government just print off million dollars of money to get the country out of dept. Or give everyone 1 million dollars into their bank accounts. id get it tbh.

回答 (11)

2016-05-21 1:44 pm
✔ 最佳答案
Money is not a thing. It only represents the value of other things.

Say I grow potatoes and you grow cabbages. We want some of each other's crop. Great - we can do a swap and agree a price, say 2 potatoes for one cabbage. But what if I need a sweater and the knitter who made it only wants cabbages? We could do a three-way swap. But you can see this is going to get EXTREMELY complicated once you start thinking about all the hundreds of different things there are to buy.

So money was invented. If everything was priced in dollars, then I can swap my potatoes for dollars, and use those dollars to swap for anything else I want. It cuts through the problem of finding the right people to do a swap with. Of course that's what we actually do.

If the government then goes and prints millions more dollars, I'm thinking "there are more dollars around, I can charge more for each of my potatoes". You're thinking the same about your cabbages. And that's what happens in real life too - with more dollars around but only the same amount of stuff to buy with them, prices go up until supply and demand balance again, with everything at a new higher price.

So printing more money never solves anything. Governments that have actually done this only cause inflation. There are many examples in history, Germany in 1923, Zimbabwe in recent years to name just two.

Let's take Zimbabwe. President Mugabe kicked white people off their farms and gave them to blacks. They didn't know how to farm so efficiently. There was less food in the stores and the price went up to balance the money available to buy it, because people are prepared to pay more for something scarce. The government printed more money so people could afford more food, and all that happened was prices shot up again. The government printed even more to compensate for rising prices, and prices shot up even more. The result was everyone was a trillionaire but THERE'S STILL NO FOOD! The Zimbabwean dollar is now totally worthless.

And THAT'S why sensible governments don't do it.
2016-05-21 3:51 am
If everyone made $1M an hour, than being a millionaire wouldn't mean a thing. Countries that randomly print money throw their countries into hyperinflation. Zimbabwe had 100 trillion bank notes before they just gave up and adopted the South African currency instead.
2017-02-28 1:35 pm
1
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2017-02-23 6:07 pm
to balance ecomony man... even now if the money value is high the bank shall stop producing money ...
2016-08-09 2:43 pm
time for you to learn a thing or two about hyperinflation! unless you really want to carry around 10 trillion dollars to buy one loaf of bread.........
2016-05-23 3:14 pm
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2016-05-23 8:51 am
Work
2016-05-22 2:34 pm
You are sick.
2016-05-22 3:53 am
To balance ecomony man. Even now if the money value is high the bank will stop producing money .
2016-05-21 5:59 pm
"why cant the government just print off million dollars of money to get the country out of dept"
It's debt, not dept.
Governments have tried it. It's called quantitative easing. If you don't know the difference between debt and dept it's hardly worth me explaining in more detail.
2016-05-21 5:27 pm
Our lovely government works on debt and faith it will pay it's obligations. As an example, the government will issue bonds and then pay the bond holder interest. So if a foreign government like Japan buys a billion dollars of US bonds, the US government gets the billion dollars to spend on giving airplanes to Israel while the tax payers (you) get to pay the interest to Japan. So, there is no "real" money, just the imagined value of inflated currency since everything is based on debt. As a result, everything our government does is placed on the backs of future unborn tax payers.
2016-05-21 5:10 pm
Read up on Venezuela and what is happening there. They are currently printing money and handing it out free to people in need.
2016-05-21 5:07 pm
Basic economics. Very soon there would be nothing to buy with it. Who'd work to produce things?
2016-05-21 5:46 am
https://en.wikipedia.org/wiki/Hyperinflation#Hyperinflationary_episodes

Time for you to learn a thing or two about hyperinflation! Unless you really WANT to carry around 10 trillion dollars to buy one loaf of bread...
2016-05-21 5:43 am
There are endless articles analyzing what money is or should be. In ancient times cattle were the preferred money for travelers because cattle can walk. When they got where they were going they would sell the cattle for metal, preferably gold for large amounts, silver for carrying around, and coins of copper, bronze, or iron for spending. Then you have these big stones that islanders use for money. That's because you need big stones to make a foundation for a house. Some of them are too big to move easily, so until they are needed they are left where they are and everybody REMEMBERS who owns them. If a boat sinks with a stone in it, it's still money, just in an odd place.

They say paper money began with goldsmiths. People would deposit gold and then write orders to deliver the gold to another person. The smiths noticed right away that they only needed about a tenth of the deposits in the form of actual gold, so the less honest of them loaned the rest for usury. That is why the ancients always hated usury: it is inherently dishonest. Usury banking is now called margin banking to make it seem more legitimate.

Noah Webster, the dictionary guy, reasoned that it was ok for a man to own part of a business and to receive a portion of the profits, so it must be equally ok to deposit money with a steward who had a talent for investing in successful businesses. The depositor would not actually own a business, but he would have an interest in his steward's dealings and was entitled to be paid for his interest. Prior to that there was no such thing as retirement. People saved what they could of their earnings, or they hoped their children could support them, or they worked until they dropped. The savings bank was an obvious winner, and millions of people deposited their savings to get the benefit of compound interest, thereby providing huge amounts of investment money for new industries such as the recently reinvented steam engine. The margin bankers engineered the "roaring twenties" to upset the money so they could then restore it in the 30s, close all the savings banks to eliminate the competition, and blame the whole thing on Hoover.
2016-05-21 3:58 am
Income comes from labor and resources. In the way olden days, people did not need "money" because every thing was done on a barter basis. {But their was credit -- when someone got fresh spring vegetables in return for apples in the fall, etc). As society grew, and barter become too complex, groups decided on a medium of exchange (money) to value goods and services.

The U S government has printed billions and billions of dollars (+ other debt = $17 Trillion)- in the form or income tax credits* that make the Dept of Revenue pay out more than it takes in [sent to people electronically or by paper check]. When Obama granted $8,000 credits to buy a house, house prices went up by $8,000.

*There is a big difference in getting back what you overpaid, and credits (EIC, $1,000 extra child, college tuition kickbacks, etc).
2016-05-21 3:51 am
Money has NO value other than that our society gives it.
The Germans printed Deutschmarks by the BILLION and carried them in wheelbarrows to pay for a loaf of bread after WW1.
You are not asking the key questions:
WHO holds the debt and WHY.
2016-05-21 3:49 am
The more money you print though, the less it is worth. The Germans tried to pay off WWI war debts by printing more deuch marks, but they ended up having to buy loaves of bread with bands and bands of 100 mark bills
2016-05-21 3:47 am
You know diamonds are worth a lot of money because they're rare and take a lot of work to mine, right?
Similar deal with money, if there was a lot of it and you didn't have to earn it then it'd have no worth.


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