your posts did not answer my question I believe.
Printing money dilutes it’s value. More money chasing the same quantity of goods and service drive up their prices.
CarmichaelPatriot
Well, are me and you getting this money? Who is getting this money? Who is able to affect the quantity and services just because the govt prints money?
Uh, too much money chasing too few goods?
buckalfa
Whose money? Are you getting this money? Are you causing the scarcity of goods through your spending or are you getting paid wages? Are you getting the government money? Who is getting the government money that affects supply and demand?
WORK PRODUCT
When you take money from someone and give it to someone else to spend (which is exactly what government spending is) there is no WORK PRODUCT the person receives for his money.
So the second person get to spend that money (he didn’t earn) on the same amount of existing goods. So, more money chasing fewer products = price increase.
Anything the government does to disturb supply and demand breaks everything.
Mr. K
Who is receiving that money? Welfare? Has welfare payments gone up so much in the last 6 months to cause this inflation? Who is receiving the money from people who are having it taken from? Who determiones who gets the money that is printed? Arent programs like welfare and govt payouts for our population already in place and not new?
It’s easy, for this case. If you have a static supply of goods, but print a bunch of extra money and hand it out to people to buy those goods, they’ll bid up the prices...hence inflation.
bobl-
Who is receiving this money? Where can I get this money they are printing so I can buy these goods that will affect the economy?
Government gets the money to spend either from raising taxes (thus taking money that would otherwise be going to the private sector) or by issuing debt. Where does it get the money to issue new debts? Oh, well you see the Treasury just creates it out of thin air. Thus there is YET MORE money chasing the same amount of goods in the economy. The result is inflation.
FLT-bird
Why does the creation of new debt or issuing of bonds for investment cause prices to rise? While my bank account might go in the red, how did that cause gas to rise?
How did the govt issuing bonds cause drilling to stop?
Govt policy seems to affect more price rise especially in the oil and gas profession, yet this just is an incomplete answer.
How does the simple printing of money cause inflation? Shutting down oil wells is not printing money...
YOU don't get any of it, you're not in the elite.
But it's out there, given to many government agencies, who pay their employees, who then buy goods.
What part of that are you unsure about?