Do you think US government should print more money?

@scheng1 (24650)
Singapore
June 5, 2011 6:11am CST
US government had printed lots of money in a bid to devalue the currency, hoping that this act can save the economy. It seemed to work just for a short while. Now that the US job data showed that many people are still out of jobs, and the unemployment rate is still very high, there is widespread fear that US government will print more money. What is your view on this? Do you think that US government should print more money?
2 people like this
12 responses
@1hopefulman (45123)
• Canada
9 Jun 11
If we just print more money with nothing behind it, how long will it solve the problem? It will just hit harder later. What if I had debt and just printed more money to pay it. How sensible is that?
1 person likes this
@1hopefulman (45123)
• Canada
9 Jun 11
Greece's economic woes could easily be solved by just giving them a printing machine to print more money so that they can quickly pay their debts. Why didn't the Greeks think of that?
1 person likes this
@scheng1 (24650)
• Singapore
9 Jun 11
Hi 1hopefulman, I thought Greece is part of the countries using Euro. Impossible to print more without the permission of the European union. Actually the debt situation of Greece is not as bad as US. The absolute amount is nothing to compare. I think US has so much debt that other countries are fearful of it defaulting on the debt. Greece still have some gold reserve. That is why the European union wants it to sell away the assets.
1 person likes this
@scheng1 (24650)
• Singapore
9 Jun 11
Hi 1hopefulman, if only those people in the government focus on solving the economic problems instead of using stupid tricks. Printing more and more money only make the poor people even poorer. I bet the imported goods increase in price simply due to the foreign exchange rate. Since the US dollar declines so much against major currencies, there is no way the imported goods can sell at the same price. I pity those poor people who do not get much salary increment, yet has to fork out more money for the goods and services.
1 person likes this
• United States
5 Jun 11
Only if they give it just to the poor. We have enough money, it's that the rich won't give it up. We need to create a more variable job market geared towards people.
1 person likes this
@scheng1 (24650)
• Singapore
8 Jun 11
Hi Zaffirewolf, printing more money hurts the poor people more. Since US is a great importer of goods, the poor people will have to pay more for shoes and bags, and other things. If the US dollar declines 20% against the other currencies, it follows that the goods imported from those countries will be 20% more expensive. Nothing changes except the foreign exchange rate. The sad fact is that most of us do not enjoy 20% salary increment. That means the poor people would have less purchasing power. The rich are not affected so much, since they have assets in different investment vehicles, and they can buy gold and silver to hedge against the declining value of the currency. The rich poor gap will be wider, not narrower.
@yoyo1198 (3641)
• United States
5 Jun 11
I do not understand this idea of just printing more money. What is there to back up the value of money printed? We used to have gold as the standard and every dollar had to have an equivalent amount of gold in storage to back it up. What do we have now? The promise from China that they will cover the value? Someone needs to help me understand this please.
@yoyo1198 (3641)
• United States
6 Jun 11
Still doesn't make sense. So, we've just got a lot of paper floating around of an indeterminate value? Whose big idea was this?
@scheng1 (24650)
• Singapore
8 Jun 11
Hi Yoyo, I also do not know whose bright idea is that! It is plain stupid to keep on printing money, and let the people suffer. Most people enjoy just a few percentage increase in salary. Over here in my country, it is about three to five per cent. I doubt those workers in US are enjoying higher percentage in term of salary adjustment. But the USD has declined more than 20% against many currencies in just a year's time. That means the workers will have to pay more than 20% for the hike in imported goods.
@jazel_juan (15747)
• Philippines
6 Jun 11
I was also thinking of this before..maybe if my country will print more money maybe things will be better..But as i was searching for answers, i realized that a government cannot just print more money bills and other tender..because everything relies on the gold reserves. Like if my country on has this specific amount of gold reserves that is like its parameter in printing money unless it increases its gold reserves
@scheng1 (24650)
• Singapore
9 Jun 11
Hi Jazel_juan, not many countries use gold reserve to support its currency. Most countries have a strong economic base, and the booming economy is good enough to support the value of its currency. US has eight times more gold than China, yet everyone knows how bad the economic situation in US is, and how well China is doing. If given a choice, most people will invest in China renminbi rather than US dollar. The fact that US wants to print more and more money shows how stupid the government is in managing the finance.
@ANIME123 (2466)
• United States
5 Jun 11
No that isn't a good idea to print more money because than the moneys worth would go down like a dollar bill would probably go down in it's value. It's what happens with these things and I wish we weren't in debt, but printing money is not the way to go solving that. It sounds easy when one says lets just print more money, but in reality things become worst.
@scheng1 (24650)
• Singapore
8 Jun 11
Hi Anime, the fact is that US dollar declines so much. I think you will find that imported goods, even from China, cost more this year than last year. The salary in China is rising at an average rate of 20% to 30%, and on top of that, the currency is stronger than USD. I think the imported goods will cost at least 20% more than last year. If US keeps printing money, then the cost of imported goods will definitely go up. I pity the poor people. They are the ones who have to suffer most when USD declines.
@kukueye (1759)
• Malaysia
6 Jun 11
Money printed according to reserve. - Green money.
I think a country can print money according to its gold reserve and not print as the country like, too much money printed means lot of money is floating and traded outside the country and some being exchange into other currency , once changed it losses it value as value being transffered into out currencies. domestically usually money is enough, however, inflation alwasys made money more expensive.
@scheng1 (24650)
• Singapore
9 Jun 11
Hi Kukueye, the problem is that not many countries use gold reserve to support the currency anymore. Even though US has more gold than China, everyone can see that China is doing better economically than US. The economic situation in a country can provide a good support for the currency. If US enjoys a booming economy now, printing more money probably will not devalue the currency so much. Just too bad it has so much debt, and so many unemployed people, and yet it wants to print more and more money.
@dragon54u (31636)
• United States
5 Jun 11
NO!! They keep printing money in an attempt to keep the population content, to keep the misery at a minimum but the misery is spreading. They print money to keep their jobs and get re-elected. They are ruining the economy. If I ran my household like the Government runs the economy I would be in jail for fraud and other charges and I would be bankrupt. The US should let things happen and suck it up, ride it out and do the best we can. Then the bad economy will finally recover. Instead, they stave off the collapse of the housing market, Wall Street investment firms, car companies....they are just delaying the inevitable and when the final collapse comes it will be worse than if they had not intervened. The world is laughing at us right now and I don't blame them.
@scheng1 (24650)
• Singapore
6 Jun 11
Hi Dragon54u, if the US government learns to cut down on unnecessary expenses, that is a great help to the economy. If the President really wants to help, and is willing to forego his salary, he will definitely get elected. Since some outstanding CEOs could accept a pay cut, and earned just a dollar for whole year of work, I do not see why the President cannot do the same thing. After all, he does not need to pay for the electricity and other bills incurred in the White House. He does not even need to pay for his trips oversea, his meals everyday, and other transportation cost.
@anklesmash (1412)
5 Jun 11
You have to be careful in printing more money.It didn't do weimar Germany any favours there are lots of images of people pushing wheel barrows full of money just to buy bread and peoples savings became worthless.However i don't think it is very likely as i think the us are more astute than that and it may help increase us exports as american products will cost less abroad.
@bird123 (10632)
• United States
5 Jun 11
They will continue in order to support the economy until it gets going again. If they let the economy slip into recession, lots of people worldwide are going to get hurt very badly. It would also help a great deal if they could get the speculators out of the oil market. That is the biggest drag on the economy. Without speculators, prices would drop in half. The economy would start up again.
@scheng1 (24650)
• Singapore
8 Jun 11
Hi Bird, before targeting the speculators in the market, best to get those dummies out from government first. If the government is really good, those speculators will not speculate on commodities and oil. The price of oil, grain, coffee and other commodities shoot up because of them, and that is due to the result of government not able to control its debt and economic problems.
@megamatt (14292)
• United States
5 Jun 11
This is really one of the things that is going to screw us over even more. I mean, it already has caused a lot of trouble many times in the past. Therefore, there are a lot of times where printing more money might seem like a good idea. However, it is the furthest thing from a good idea ever. In fact, it is one of the worst decisions that someone trying to fix an economy could ever be made. Therefore, you just end up with a lot of worthless paper. In the end, I have no idea what we should do to fix the economy. However printing more money is far from the right answer. In fact it is the wrong answer, one of the worst answers. It is really something that is going to just end up killing the economy far worse than it is. And it really is pretty bad to say the very least. Therefore, there might be an answer to fixing the economy. However, I don't think that this is the answer. In fact this is really the worst answer all together.
@scheng1 (24650)
• Singapore
6 Jun 11
Hi Megamatt, I agree with your analysis and comments. I think printing more money is also not fair to those people who were savers in the past. Imagine their saving of $10,000 becomes less and less valuable, since the currency declines so much. Printing more money is going to jack up the inflation rate too. If this goes on, residents in the US are going to find price doubling every year. The sad fact is that salary does not increase at the same rate.
@petersum (4522)
• United States
5 Jun 11
Isn't that what got us into this mess? The US method of spending money that you haven't got, whether it is at personal, family or government level, has got to stop. America is ruining the economies of the entire world. Just admit that you're broke!
@scheng1 (24650)
• Singapore
6 Jun 11
Hi Petersum, if we are broke, we cannot just print more money for personal use, yet the US government is doing that. It is amazing that US has so many financial experts, yet none of them exist in the government. I think it is pulling the world into a great mess. Hopefully it can stop printing more money, and learn to manage the finance better.
• United States
5 Jun 11
No, they should not do that at all. Germany tried doing that awhile back alls it did was made an influx in money, made there problems even worse. 1.00 would be equal too 1,000. It's like if you had a really rare coin, the only one in the world. Then somewhere they found a warehouse full of these coins that time had forgotten about. your coins value would plummet since everyone would have one since there is so many. Same thing applies with the dollar the more we have the less valuable it is.
@scheng1 (24650)
• Singapore
8 Jun 11
Hi Jakeyodaddy, I remember the story about that woman who used a wheelbarrow to wheel all the money to buy bread. In the end, the wheelbarrow was stolen, but the money remained. I think that is a story to show how bad the situation in Germany really was. If US continues like this, it will face similar problem. Those who are smarter will migrate elsewhere, and convert their cash into other currencies. Those who cannot migrate elsewhere will have to keep gold and silver to hedge against the loss in currency.