Why doesn't the government print more money to solves all the problem?

If India has a machine to print its own money, why can't the government make it rich by printing crores of rupees?

If a country is drowning in debt, why doesn't that country print a lot of money and pay its debt?

Why doesn't the government print out a lot of money and divide it into a homeless person?

What does the Government does not print money and solves all the problem?

Why does not the government make everyone rich after printing money?

why can’t the government print more money?

Why can’t we just print money to pay off debt?

Why can't the government print an unlimited number of currency?

What are the restrictions and how does the currency system actually work?

Why doesn't a poor country print more money for itself ?

Why doesn't the government print more money to solve a financial crisis?

It is a very interesting questions, you will feel very funny questions

But if you search for this thing in Google, then there is no shortage of people asking at all,as you can see the result number here  95 million+  results.

That are shot answer is because printing money just makes money less valuable also know us inflation (This is definition of inflation)

In this post, you will be  taking interesting knowledge about Money.

So get ready.....

The Money Enigma

When we think of money, then we make a round fragment cotton  made of metal and 
magical plastic from which we can buy anything, we imagine that.

But when money was not there before, how did people work. Then if someone wanted some thing then how could you find that.

you would be surprised to know that about 4000 years ago, no money existed.When there was no money, then there was no such thing, giving which you can buy anything, then human used Barter System.

Barter System

means a system in which the things exchange was done.

Let me explain by example

A and B are two people. Man A has an axe and man B has rice and man A needs rice because he is also hungry and man B needs an axe because  he has some work with them.

Both of them used to exchange among themselves, it was called the Barter System.

Where both are considered to have the same value as axe rice. Only then has he been able to exchange.

But here is the problem and limitations, it works only when both the parties have such thing with each other that they want.

if man A wants rice but man B does not want an axe then can not be possible exchange
and this thing man A dies of situation or another possible case is that man A feels so hungry that you knows man B accidentally do something with his axe and runs away stealing rice.

There is a non violent solution to this problem that there is such a thing that everyone wants and it is born here MONEY. One such thing of money that everyone wants.

You will be surprised to know that earlier cows were also included in this category. Such a thing that everyone wants. Yes, cows used to consider as a money and cows sheep camel or other animal used .

Mean that they were used as money when there was no money but the cow could not travel by keeping it in the pocket then it was born coins and notes.One such thing of money that everyone wants and it’s potable.

What exactly is money? What is value of money? What is power of money?

Answer ==> Money does not have any value in actuality.

Let me explain

Suppose  you are in an island where there is no other person but only you, then if you are given crores of rupees (India Currency).there is no value on it, there will be money to use less. I am right.

There is value in money because we believe is that it has value, just because we believe that a piece of paper has value, so it see valuable.

Because all the people of the world believe in money is valuable. It becomes universally valuable.

Hence we can buy whatever, we want from money, not just a human being, but everyone together considers money to be valuable.

That’s reason it’s valuable. Therefore that such a thing is made by which we can buy  resources, we can buy some actual thing, which is something that everyone needs, so that becomes a Medium of Exchange.

Then the big questions comes.

What does the Government does not print money and solves all the problem?

Why doesn't the government print out a lot of money and divide it into a homeless person?

Why does not the government make everyone rich after printing money?

why can’t the government print more money?

Why can’t we just print money to pay off debt?

Why can't the government print an unlimited number of currency?

What are the restrictions and how does the currency system actually work?

Why doesn't a poor country print more money for itself ?

Why doesn't the government print more money to solve a financial crisis?

If India has a machine to print its own money, why can't the government make it rich by printing crores of rupees?

Let me explain by example

supposes

If the government print rupees and make everyone a millionaire, then everyone becomes a millionaire. If everyone has 10-10 crores money.

In India's 1.35 crore people, everyone has reached 10 -10 crores.

So now the question is, who is rich?, everyone has 10 -10 crores, then Now who is rich?, if we compare everyone.

This time who has got rich now they have above 1000 crores rupees.

Means the quantity of money has increased but decreased value of 10 crores because everyone has 10-10 crores. 

Thus means quantity increased but value not increased.

One more example

Suppose that 30 Lamborghini cars for sale in India and 10 crore came to everyone, the price of a Lamborghini car will actually go up to a thousand crores.

Because the Lamborghini limited quantity but demand is very high because everybody became rich.

10 crore rupees have been passed on to everyone, so now who has a thousand crores who is rich and due to everyone having 10 crores.

The price of Lamborghini has increased to thousand crores. Then only those buy who have thousand crores of rupees.

Meaning the situation was earlier, only rich people will buy Lamborghini.

While the situation is still there, no change is what happened due to the formation of the contention, that only the quantity of money will increase by making everyone rich and value of money will decrease. 

The price of things will increase because the resources that are present in the earth will not increase slightly by printing the money.

The resources that are being received from the earth will only get the same, only the number of money will increase.

So due to the increase in money the same according to this, the price of things will increase, and situation will be equal. No change. 

The value of 10 crores will be equal to 10,000. It does not make any sense to print and distribute everything, the more the double notes are printed, the more the inflation will increase, and the matter will be equal.

Now

Why doesn't a poor country print more money for itself ?

Why doesn't the government print more money to solve a financial crisis?

 Answer ==> More money/currency print is bad idea .

let me explain with a real life example

I am not only being said that printing money or currency print is a bad idea but in real life there have been many such examples which show that printing money is a not bad idea but very bad idea

Everything is normal in Zimbabwe right now and it is 361 ZWD = 1USD

Now go back in time from time to time in 2008 Zimbabwe government there bad decision taken bad  not too much bad very bad.

The government there started printing a lot of money and the printing machine was working day and night.

See this table

The inflation rate of the normal deployment country is 2% per year and the inflation rate of the other countries is 5 to 6 percent per year.

But the government of Zimbabwe did a money-printing scandal when the inflation rate there was 89.7 not 89.7 million not 89.7 billion not 89.7 trillion not even 89.7 quadrillion note even but 89.7% sextillion .

Means 89,700,000,000,000,000,000,000,000%  increased so much zeroes% increased so much which I Just told that this means that the quantity of money is big but it has no value and the percentage of things has increased because the notes had increased, this situation had become so bad.

And look this photo

This kid was going to buy a bread and had to pay millions of Zimbabwe dollars to buy  bread, due to this much money, the price of bread was doubled every 24 hours, after this money painted scandal.

The situation was so out of control was made so people were not able to carry this much cash.

So the government print out a note of one hundred trillion Zimbabwe dollars.

Suppose if a note of one hundred trillion rupees note print out in India how are you feel ? That’s same thing that happened in actual print money in Zimbabwe.

The value of things will also increase, only then in a way the matter will become equal if  government printing more and more money. 

If you give crores, then bread of ₹ 10 will be received in ₹1000000, then if you see then what is the benefit of that 10 crores ? what is the benefit of that note when the price of things will also increase ?

If the quantity of money is large, then according to it, the value of things will increase as well.

It is second most verse case and the case that comes on number one.

Number one comes from a country named Hungary and it happened in 1946 and it is about printing money in fact.

See this chart

In it, see that the Zimbabwe monthly inflation high was 79,600,000,000% means that after 24 hours of printing money, the price of things was doubling.

But 1946 in Hungary this percentage was very high, 41,900,000,000,000,000%, and this means that There, the price of things was doubling every 15 hours.

According to the natural inflation of a healthy country, according to what happens in a country, after every 23 to 24 years, the price of things is doubled. 

For example Royal Enfield do you still pay for it if ₹ 200000 after 23 years to today it will get four crores due to inflation .It is happens in a health country.

But in Hungary in 1946, this thing was happening every 15 hours.

Hungary currency was Pengo. But due to this inflation , the denomination of the note is 100 pengo, 200 pengo  it would be big change .

 This Pengo Note out

This note means 100 Million Billion Pengo.

Here you note a fact that this highest denomination bank note ever printed in this world and in history. This record also goes to Hungary .

 In 1946, Things was got so bad that if you take every note in Hungarian country and put all the notes together when its total value was equal to one paise. if you compare it in Indian rupees.

Means Take all the notes in Hungarian in one place then its equal to one Indian rupees.

That is reason ,The government is not print more money to solve a financial crisis. or
A poor country are not print more money for itself

<=== Because ===>

The resources of the country are not increased by more money printing.

So  government can,t be solved any problem related unemployment, debt, poverty and money related  by printing money.

Rather every country in actual can do it by growth in everything. whether it be in terms of grow to be in terms of education or different sectors.

There is also a very famous code

' If money grew on trees , it would be as valuable as leaves'

Wise use of money

In Google you will search riches to rags, then you will find a lot of stories.

I am talking about riches to rags. from the millionaire to zero and not the rag to the millionaire, which we heard a lot. 

Those who come on the road even from millionaires because they do not know how to use the wise of money and we get to know that we should also use the money wisely.

No matter how much money you have, if you will not use wisely then your growth will stop and it is not a good thing.