How can printing more money make it worth less?
Like, you know how the U.S. is in debt? When I first heard that, the first thing I thought was "Print more money" and I didn't think of it again until someone brought it up a couple days ago in my AP Human Geography class. I don't understand how printing more money can make it worth less. Like how Germany (I think it was that country) printed more money to pay off a debt; how China printed a lot of money, making it worth less; and how the pound is worth more than U.S. dollars. I really don't get it ._.
Other - Politics & Government - 4 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Money's value is detirmined through how much of it there is. The more there is, the less its worth. Another thing about our American dollar is that there is no backing it, while most other countries have some backing to it. so when they print moreit means they genuinly have more money, while we have nothing to back it except for the amount of it and the power of our government.
2 :
At one time our money was backed by gold - one paper dollar for one oz of gold now if you printed two or more dollars backed by the same amount of gold that's called inflating the dollars and of course each dollars is worth less. Today our dollars are not backed by any metal but non the less a few short years back gold was selling for 2 to 3 hundred dollars an oz. today it's been batting near 2000 dollars an oz - it's because of inflation and huge printing of dollars.
3 :
You need to take Econ 101.
4 :
the more that is printed the less it is worth. Printing more money that can't be backed causes the value of the dollar to go down which causes inflation.
