I think that if the goverment were to print the money and start giving it to companies. Wouldn’t that increase the demand for workers and decrease unemployment and increase the GDP. I know its fake money but do you think that it could solve the problem. I don’t really know much about this though so I won’t say more.
I am thinking that the main reason that companies are decreasing workforce is because of decreased revenue.
that’s why I said I won’t say more.
Yeah, but wouldn’t the extra money encourage the factories and companies to produce more. Instead of them producing the same.
The fed and world central banks have been increasing the money supply to make up for the money people and banks are not loaning because of loss of confidence in in the financial system. However if the put to much money into the system it will create high inflation which is also bad for the economy.
Note. Government do not "print money", they add to the available credit by buying bonds from banks and private lenders in exchange for money they create out of thin air.They call it adding liquidity.
I think they actually tried that in Germany many years ago, and as a result the price of a loaf of bread somehow rose to $1000+
hmm can you inflation. ha the money wont be worth the paper its printed on.
The printing of money without anything to back it does nothing but decrease the value of the money already out there. When money is worth less then you need more to buy things, that’s called inflation. Any money invested in companies to create jobs takes a long time to be effective but the effects of inflation happen immediately. hat is all we need right now is for the money that everyone does have to become less valuable.
They tried that in Germany ( in the 1930’s) and it didn’t work at all. It helped give rise to the National Socialists.
are you kidding it would do a great deal of damage to the economy thats a terrible idea
Printing more money will result in an increase in the price level as the aggregate demand curve shifts to the right. More money in circulation chasing the same amount of goods and services will devalue the currency, thereby causing people to have to spend more to buy those goods and services (hence an increase in the price level). So it is not a good idea to print money to solve this crisis.