Did you know "paper money only has its value because all the humans believe that it has some value".

Hey everyone, Welcome once again to my curious article series. Have you ever wondered why cant we just print money and buy things? Well i will try to keep it as simple as possible.

SO, Why Just cant we print Money?

Everyone once had a thought of printing money at home and pay all their debts , wouldn't it make life a lot more easier? Well the truth is if the government gave us rights to print more money , the prices will rise and soon the situation will be exactly the same before printing.

But Why?

So imagine that everyone is printing money. Your mom, dad, neighbors everyone is printing money. Sounds pretty much like heaven right?. If people start printing money then most of them would start spending it to buy things , expensive things and save a little. but why save money if you can print it.

Of-course the first thing you would do is go to the Walmart and grab the expensive i-phone. But guess what, you are not the only one in the queue. 1000s of people will be in the queue to buy an i-phone right after printing the money. This causes PROBLEMS. Why do they have to keep the price the same if they don't have enough i-phone for millions of new buyers. So Walmart will raise the price and this will cause a massive inflation. This means the purchasing value of the money is decreased. Our money will worth less.

Before printing money the price of the i-phone was $1000 but after printing huge money the raised price of the i-phone would be $3000. So the situation would remain the same.

When a demand grows , the production should be also increased , for the production of more i-phones, more materials are needed , more time, more area, more workers and the list goes on. And this would increase the price of any product in the market. So printing money doesn't simply would do anything , the more money you print , the worthless it will becomes. Which makes us in the exact same situation before printing.

Thats it guys, i kept it short and simple , but it is bit more complicated than that.

Source used : Economist Thrusday.

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