%26quot;It will cause inflation%26quot;. Yes, and who will that hurt? People with money. Besides, it doesn%26#039;t have to cause inflation. Printing money does increase the money supply. But most money does not exist as printed bills. People use credit cards to buy things. Credit cards increase the money supply. Who controls how much credit card debt can be incurred? The banks and credit unions do. The government can limit how much credit can be extended, to control the money supply and inflation.
What we%26#039;re doing now is printing t-bills, that our unborn children will have to pay off. What%26#039;s the difference in printing money and printing t-bills?
The losers will be those with lots of money, they don%26#039;t want inflation. The winners will be those that owe more money than they have, they%26#039;ll pay back their debts with money that is not worth as much as when they borrowed it. The future generations will be winners, because they won%26#039;t be born with a debt to repay (the t-bills).
Why do we need taxes? When the government needs money, why can%26#039;t they just print it?
In fact, many economists would support your view to some extent. For example, starting with Ricardo, economists started believing that it shouldn%26#039;t matter whether the government borrows money or prints it. If it borrows the money, it will have to print it in the future when it pays it back. If people are rational, then they will understand that borrowing it now and paying it back later is just as inflationary as printing money now.
However, there are other reasons why this is not exactly right. People might not be totally rational. After all, we see people running up their credit card debt without seeming to understand that they will have to eventually pay it back. So, it is quite possible that people do not realize that debt is really the same as paying now, except for the interest costs.
Why do we need taxes? When the government needs money, why can%26#039;t they just print it?
Inflation is a tax, someone said %26quot;the most sinister tax of all%26quot;.
Have you studied the effects of hyper-inflation yet on the macroeconomy?
[Meanwhile, middle-class people who depended on any sort of fixed income found themselves destitute. They sold furniture, clothing, jewelry and works of art to buy food. Little shops became crowded with such merchandise. Hospitals, literary and art societies, charitable and religious institutions closed down as their funds disappeared.]
What you seem to be wanting to do is reward the borrowers for their irresponsible borrowing, yet punish the savers for their responsible financial behavior. Being a saver myself with no credit card debt who already struggles to afford the inflation we already have, I%26#039;ll be fighting your proposal.
Why do we need taxes? When the government needs money, why can%26#039;t they just print it?
It would hurt the poor. Yes you would have more money. So? If you have 1$ and it buys a soda good. The gov. has printed that money so 1$=1$. If they were to print more then the soda would rise to maybe 4$. And you have 4$ because there%26#039;s more money. It%26#039;s still even and all you have done is raised the prices if everything. And if your salary doesn%26#039;t increase then it hurts those you didn%26#039;t have that extra money to begin with. The amount doesn%26#039;t matter. It%26#039;s the value of it.
Why do we need taxes? When the government needs money, why can%26#039;t they just print it?
I agree with you. It is no longer real money . Must almost be recalled something new issued.
Maybe North American Trade Union will do that ? Merge Canada, US and Mexico as one land ? New currency ?
Why do we need taxes? When the government needs money, why can%26#039;t they just print it?
It won%26#039;t work and you%26#039;ll find out why it won%26#039;t work really soon. Eventually the world doesn%26#039;t want our crappy dollars because they are more worthless than the paper they are printed on. It causes an economic deathspiral.
This is already happening, and the %26quot;printing%26quot; of money has been going on for quite a while now, like you said with credit card debt and people refinancing their houses so they can take the extra money and spend it on more crap they don%26#039;t need like big screen tv%26#039;s and new cars.
The problem with bailing out the lower class is that they don%26#039;t just want to be bailed out, they want big rims and want to eat at the fanciest of restaurants and have all the fine jewelry the rich people have. Oh well, that%26#039;s what you call irresponsible borrowing, and the entire country is going to pay for it really soon.
What happened was the big businesses of the US lended out tons of money to people with less than great credit and now all those people are losing their jobs and falling behind on their payments. As a result you have big banks like Citigroup slowly becoming insolvent and other big banks like the ECB%26#039;s lending us hundreds of billions of dollars to bail our businesses out.
Basically %26quot;printing%26quot; money out of thin air via credit to keep our economy floating for a little while longer. I don%26#039;t think these guys really expect to get their fake money back, they%26#039;re all just afraid of what happens after the fact that our economy crumbles from underneath us. The world will definitely suck a lot more after that, and it%26#039;s only just around the corner.
Check out this guys site, he has a series of really good articles titled %26quot;The Coming Economic Depression%26quot; that he%26#039;s been running since 2002, which he later changed the name to The Spiritual, Economic, and Political Review.
http://www.markswatson.com
Just do a Google search for %26quot;coming economic depression%26quot; to find the earlier articles. They%26#039;re quite lengthy, so they%26#039;ll probably take you a while to read but they are highly informative. They let you know just how close it is.
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