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Creating a such amount of money will just create inflation. You'll end up with exactly as much purchasing power, is not less.
by raphaelj 7y ago
Creating a such amount of money will just create inflation. You'll end up with exactly as much purchasing power, is not less.
- PeterStuer 7y agoThe whole point is that 'money' has no intrinsic value. It is merely a proxy we use for prioritization. The current system prioritizes adding a 67'th Ferrari to the collection of Mr. Big, over clothing/feeding/healthcare for people that do lack the basics. Inflation is not caused by the creation of money itself. If it were, the USD would be resembling the Zimbabwean dollar after all the 'Quantitative Easing'. For inflation to occur you have to put the fresh currency into the hands of those that are actually going to spend it on unmet needs for which there is an inelastic offering, meaning you can not or choose not just produce more to meet the demand. Giving free new money to Mss. Rich will not suddenly inflate the bread price, as her demand for breads was met long ago. It might drive up the stockmarket as she is dumping cash on speculation or buying shares back in her own companies, or drive up prices of real-estate for speculation etc.