Why Can't Government Print Money To Pay Off Debt?

Why can’t governments just print more money to pay off the country’s debt OR pay for everyone’s education OR end the poverty, OR abolish taxes, OR distribute it to make everyone rich? That would be a real example of money growing on trees! right?

By the end of this video, you will think that this question is absurd, which it is, but the question has been asked so many times by so many people, and there is nothing wrong to ask!

But before you can wish for more money printed, you have to know 'what is money', 'types of money', 'what printing money actually means' and 'why happens when governments print money'. The video will investigate how inflation and hyperinflation occurs and also the right kind of inflation.

The video also discusses examples of countries like Zimbabwe printing money that resulted in devaluation of their currency and Hungary that tried to pay off debt by printing money.

Share your thoughts by writing in the comment section below. We would love to hear your opinion.

#economy #inflation #recession

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[TheLowLandGardener]

Imagine every one have a billion dollar, everybody buys their own private jet but the jet is not enough to meet the demands so they ask for bigger price. After buying the jet nobody can hire a pilot because all pilots are billionaires so you have to pay them more to hire them. In short the value of goods and services stays the same.

[cliffsofmoher]

Nice videos I was looking for this kind of videos thanks

[zahier_gaidien]

High Qualityuality content, educational, informative, accurate and straight to the point. I truly love your channel, keep on keeping on 😉.

I've got a question/request, totally non-related of course, however I'll ask anyway.

May I have a heart please??

[severinbechtold]

Was looking for a more in-depth analysis to "what are the limits of government spending". Perhaps a depiction of selected economies and a comparison of their monetary policies...

[henrygustav]

Printing more money does not necessarily mean there is more cash flow. If the Federal government printed 10000 trillion USD and put it in a bank account, then that money has no chance of causing inflation. You also ignore unemployment, people can be employed to produce more goods thus keeping price level the same.
Zimbabwe - land reforms to redistribute resulted in catastrophic supply side losses which resulted in inflation and caused the printing of money. The printing of money was not the catalyst.

[valentinnicolas]

Your video is sincerely very good ! I am french and thanks to you I learn to listen english and I improve my economic level !

[TheCommonSNse]

Something missing from the explanation of hyperinflation is the decrease in productive capacity. You won’t get hyperinflation without the combination of increased purchasing power with decreased productive capacity.

Money loses it’s value when people lose faith that the country will be able to repay their loans. That means you either need some significant decrease in your ability to pay, or you need to print an exorbitant amount of money. In pretty much every instance we have seen of hyperinflation, there is some significant decline in the productive capacity of the nation that accompanies the increased spending.

[ibrahimakhaliloudiop]

Very useful content. I learn a lot. Like a lot a lot. I am a political science graduate with a keen interest in economic matters . Now my understanding is appropriate. I will thrust for sure my torso and engage debate with fellow so called intellectuals around. Keep on, always keep on the content you are developing! We cannot thank you enough!

[nahomwg]

very informative and educational, I'm looking forward to more videos like this

[saraimontserratvazquezlope]

This video made it so clear, thank you so much:0 <3

[ClassicJukeboxBand]

The US government prints money, but it has to borrow it from the private Federal Reserve bank to do so. The US does not print money without borrowing it first. This is why paper money says "Federal Reserve Note" on the bill. The Federal Reserve owns the bill, and the US government is borrowing it. It's a promise for the US government to pay back this money it borrowed from the Federal Reserve private bank.

[agentprophet]

Wish my teachers took classes like this back in school/college

[sahilsingh-dpsv]

Extreamly informative.. thanks brother.

[Nhamo]

Thanks for doing these videos they are so informative. Thank you.

[parvezsiddique]

Keep doing the good work you deserve more views and subscribers ❤️❤️❤️

[Psztyk]

Well thanks for the Peter Pan spoiler





Great video

[satyapragyandas]

Query,
1. if the govt prints money to pay external debt how does that affect money supply in domestic markets? I mean you just pay it for external debt and not distribute to people in domestic markets.

2. The problem with printing money is that it will lead to high demand. If the govt prints more money to boost supply at the same time, won't it solve the problem?

[marcofestu]

Excellent video! One clarification dou: it's *currency and not *money (gold and silver are money, us dollar, euro, etc.. are currencies) =)

[jontyturan]

every economist just using this example that prices will go high etc.
i am not saying to distribute money in public directly or indirectly. However, they can pay their lend, build houses for very very poir people, provide water and electricity to everyone in the country. That’s all why they are not doing that. I believe there will be no inflation at all because of this. I need answer that’s it

[ericktippett]

All these convincing arguments concerning economic conditions can be quite confusing especially