WHY CAN'T THE GOVERNMENT PRINT MORE MONEY ?

If you ever thought this way ,you are not alone. Almost everyone of us will be having the same question since our  childhood .Come let's find the answer together.                                            

                   Now, imagine for a while that there are only 10 apples in our country and our government printed only Rs.100. Now, calculate the cost of each apple .Yes, that's Rs.10. Now, government started printing more money .Now, the total amount of money we have is Rs.1000.What would be the cost of each apple now .It simply rises to Rs.100 each. This is what happens when government prints more money .Just think what's the use of extra money when we don't have extra apples to eat .

 

           Remember that money is just a medium of exchange. The total value of money printed will always be equal to the total value of wealth our country own. Now, what you need to do is , just replace apples with the wealth .

                                             

                                                  

What happens if government prints more money and give that to poor people ?

Yes , the poor people will become rich. But you know what ? They'll still be starving .Poor people will become billionaires. We can call them "STARVING BILLIONAIRES" 

                                                    

This thing already happened in countries like Zimbabwe and Venezuela 

Imagine yourself carrying a briefcase filled with billions of dollars  .You are called a billionaire now. But you can just buy a cup of coffee with that money in those countries . Money will loose it's value when you just print it more and more .

                                              

So, when should we print money ?

That's a simple question to answer .We need to print more money when we have more apples production. I mean when we have continuous wealth production. So that a balance can be maintained between wealth and money.

                   Thanks for reading ,hope you found  an answer for your question. If you have any similar questions please ask me through comment section . Share this article with your friends and don't forget to follow my blog. Lot more interesting content  is yet to come.