If you print more money then the more of it that is out in circulating would mean that it is worth less because there is more of it. This is essentially the way the government tries to control the value of the dollar. on side note the government actually continuously prints money and takes older money out of circulation and shreds it and destroys it. Watch the movie "mad money" it gives a pretty good idea how it works.
It would be easy to print more money, but doing that would devalue the dollar and cause inflation to skyrocket. When the supply of money increases, the costs of goods and services tend to increase even though the amount of goods and services purchased for higher prices remains the same. For example, a 16 oz loaf of bread may cost one dollar. When the supply of money increases that same loaf of bread may now cost $1.10, but it's still only 16 oz. That same dollar now buys less (devaluation) while the goods cost more (inflation). That's why we don't just print more money.
Because if you print more money the value of each dollar will go down and not be worth as much. If there is one piece of gold to start with on the entire planet, and someone "makes" more gold, that first piece of gold is less valuable now because there is more.
Actually this has happened in history before but by printing more money can't solve this. More dollars equals less value of the dollar.
Lets say you have 100 (1 dollar bills) then the dollar bill is rare and has a valueIf it is 200 of these bills then the value isn't as rare because there are more of it. This has happened before in another country, food and other prices went bouncy because of the rarity of money.
The government want people to continue the cycle of money. Money needs to be spent, saved, spent again and the cycle continues. They reuse the same money. If the cycle is broken less are buying which means less are selling.
If America is in Debt, y wont they print more money?__Coz they have to match the money with gold in order to be valuable.__IF they wanted to print more money without matching it with gold, That cause Inflation which lowers the value of the money, Inflation means the same thing costs more money to buy it.ex: If you had a cake,& you want to give out tickets for a piece, and gave 100 tickets, everybody would 've a silver,BUT, If you gave only 2 tickets, The two ppl would get a bigger pieceso if those tickets were money & you print too much money it wouldn't be worth that much.
You know, I do NOT know... But that's a good question... Remember that we ARE trying to save the earth, so us killing more trees and using ink to print probably isn't the best to do nowadays!
