The United States is in debt. What would happen if we just produced all we need from the mint?
by 
badmudda
ANSWERS: 9
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This would produce a great deal of inflation. If you increase the amount of money available without increasing the amount of wealth that the money represents, then each unit of money is worth a smaller proportion of the wealth, so it takes more money to purchase something. Imagine you buy into a poker game for $10. Then, partway through the game, you don't change the buy-ins, but everybody gets twice as many chips. Do you now have claim to $20 of the buy-ins? No, it just takes twice as may chips to get $10 back.
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It has been tried many times by many countries and it just leads to rampant inflation.
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Sure the United States is in debt. But if you read a dollar bill, it is the property of the US Treasury Department. Therefore, since the US owns all of it's money, regardless who has it in their posession, even Bill Gate's money isn't his, and can be taken away to pay this so called debt.
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I'll say it again. Rampant inflation.
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I love the question. I've often wondered that myself. Probably something having to do with inflation, harm to our economy, and the value of our money. I'm sure some of our AB Economists will check in on this one. (Money's printed at The Bureau of Printing and Engraving in DC, that much I do know.)
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Because wealth is not printed on paper. The wealth of the US is limited by the totality of its good and services, not the amount of money in circultion. Printing excess money whilst keeping the amount of actual good the same would merely lead to a devaluing of the currency (inflation). It is true that the government would get slightly richer whilst everyone else (that is to say, everyone holding dollars) in the nation would get slightly poorer, but the total amount of material wealth in the US would remain constant.
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Countries have tried this just after WWI ended. It caused a huge economic depression where a postage stamp cost more than a house did 10 years earlier
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have you ever tried be-friending yourself?
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What's tha hap brudda! I tell you what, if that would happen the money wouldn't be worth a pile of coconut.
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