Why does amount of [currency] increase? Loans, government decide to print them, and… if you ask me why does government print more money? Honestly I don’t know why governments print more money, like… I’m still confused on why we can’t just have the same amount of money forever (I mean: other than re-printing bills to replace damaged ones)
Voters want free stuff now! So if a government doesn’t spend more than their income, other politicians that do so will get voted in, and the next government will overspend. Therefore governments tend to be in debt perpetually.
It’s easier to print the money to get out of the consequences of that debt, than to govern well, create value and get out of debt that way.
It works up untill people think it won’t work. A self-fulfilling proficy. (1)
Amount of stuff to buy = Doesn’t change
Amount of [currency] = Increase
Voila, inflation
Why does amount of [currency] increase? Loans, government decide to print them, and… if you ask me why does government print more money? Honestly I don’t know why governments print more money, like… I’m still confused on why we can’t just have the same amount of money forever (I mean: other than re-printing bills to replace damaged ones)
Voters want free stuff now! So if a government doesn’t spend more than their income, other politicians that do so will get voted in, and the next government will overspend. Therefore governments tend to be in debt perpetually.
It’s easier to print the money to get out of the consequences of that debt, than to govern well, create value and get out of debt that way.
It works up untill people think it won’t work. A self-fulfilling proficy. (1)