When The Government Prints Money Essay

[ad_1]

Essay Written For: Danet Espinosa 

College: Miami Dade College

Name of the Instructor

Course Number

Due Date

When The Government Prints Money

Responsible governments around the world, in spite of having the right to print money, just do not do it. If it did print and handed out twice as much money as it was in the economy, that would not make life easier at all. The Tapese would not end-up affording an extra bag of corn each (Seitz 32). Instead, prices would just rise, and the residents would be in exactly the same place as they are at the moment. Cassidy (111) argues that this has been observed over and over again when the government decreed increase in wages.

The Consequences of Having More Money in Circulation

Before the invention of money, individuals exchanged their produce with the things they could not produce. This is called barter trade. It is inefficient since one has to keep on looking for a person who really wants the items they possess while at the same time having what is needed by themselves (Brown 34). In essence, there was the ‘double incidence of wants’ challenge. Another challenge is that without money, one might find it hard to save up what they produced. There would be what Seitz (32) refers to as the ‘retention of value’ problem. This is why money is important.

When people get more money into their pockets, there are those who might save and/or invest it. Nonetheless, history has shown that most of it is likely to be spent on consumables and such items as televisions and iPads. Buckley (16-7) suggests that it is surprising that most people tend to rush out to purchase the same items. What happens is that the sellers have inadequate number of items, yet the demand is too high. They decide to raise the prices, and a massive inflation results (Printz 535).

Inflation means that the money in possession of Tapese would worth a lot less. For instance, if US$100 was enough to purchase a bag of corn, it may require US$200 or more to acquire corn of the same quantity. The money becomes valueless. In the end, the goal of increasing individuals’ purchasing power is missed.

According to Brown (34), there are those who say raising prices is greed on the part of the businessman, and that they would not do it if they were in business. The question is if this is really unavoidable. Supposing a seller of corn is finding it hard to meet the demand, they will get in touch with the suppliers and push for their case. On their part, the suppliers would pressure the farmers to avail more maize. The farmers might argue that for that to happen, they need to hire more labor force, and invest more in other factors of production. That, therefore, justifies the rise in prices at the source (Printz 540).

It is not if one would or would not raise prices, it is just that the new situation in the market will have caused a hike in prices at every level. A businessman must increase the price, or simply get edged out of the market. In essence, the increase in prices by the retailer might not necessarily mean that they are making super normal profits (Buckley 20-1). The margin might remain the same, or increase just a little bit. In fact, they might not even afford to do business in an environment where they must pay their employees more and the cost of everything else doubles. This is why prices keep on rising (Seitz 32).

Conclusion

The invention of money was an important step. Money is valuable, but printing more cannot make people richer. This is because the value that money has is derived from the available goods and services. The mere act of printing more money does not make more services and goods appear. What happens is that the value of the existing goods and services get spread-out (Cassidy 112). This is what inflation means. Essentially, the average price levels are equivalent to the available number of dollars divided by the available goods and services. It is apparent that doubling the number of dollars in the economy has the effect of doubling the prices. People do not become better off since wealth comes from the goods and services which money buy (Printz 555).

Works Cited

Brown, Abram. “Printing Money: October 1, 1969.” Forbes, vol. 198, no. 3, Sept. 2016, p. 34

Buckley, Allen. “Why DC Plans Make Sense for Taxpayers and Governmental Employees.” Journal of Pension Benefits: Issues in Administration, vol. 21, no. 3, Spring 2014, pp. 16–26

Cassidy, John. “Printing Money.” New Yorker, vol. 91, no. 37, Nov. 2015, pp. 111–114

Printz, Neil. “Making money/printing painting: Warhol’s dollar bill paintings.” Criticism, vol. 56, no. 3, Summer 2014, pp. 535–557. EBSCOhost, doi:10.13110/criticism.56.3.0535

Seitz, Patrick. “Crime pays for take-two: ‘Grand theft auto’ keeps printing money.” Investors Business Daily, 25 Oct. 2017, p. 32

The post When The Government Prints Money Essay appeared first on EssayAgents.com.

[ad_2]

Source link

Quick Quote

Approximately 250 words
Total price (USD) $: 10.99

Spend Hours doing a Paper or spend less and LET OF STRESS!

Read Reviews from Clients Ordered this Assignment

James Matthew

Thank you for the help, I took my time and ordered a 14 days long essay. It came much earlier, around 7 days after I ordered it. Oh, and it was good, of course. I like the writer who did that, will definitely use again.

James Matthew

Thomas Long

The first time I ordered here and it was a success. I received my order on time and according to my instructions, the professor gave me. The two points they claim to excel in are true. Thank you!

Thomas Long

Rebecca Chang

After ordering with you I decided to recommend this place to my friends. This is my token of appreciation for your good work.

Rebecca Chang

Joyce Lee

Thanks for the excellent job. Swift and on the subject, just the way I like it. The Support team was quite nice to me, helped me with the order placing process.

Joyce Lee

Zane Sheridan

Good experience. I received a B for the paper you’ve written. Thank you so much. You’ve found a returning customer.

Zane Sheridan

Derek Holland

You guys made me rethink the whole thing. I received my paper according to my instructions and way before my deadline. I am so hopeful about this.

Derek Holland

Jonathan Stone

They are a marvel. I love their support team, they are so polite, it’s like speaking to a butler or something. Very pleasant people and good service of course.

Jonathan Stone

Grace Potter

What I received was great. I forgot to mention in the instructions field that I needed reference page and by default, there was 0 in the number of references. I was surprised to see a full-fledged reference page in my paper with relevant citations. Bravo!

Grace Potter

Confidentiality Guaranteed

We value your privacy and deserve your complete trust. Our privacy guarantee provides you with security in regard to your personal information. We won’t share these details with anyone, for any reason

U

Plagiarism Free

Our Professional Team of Writers understand and upholds Plagiarism Rules and always work towards presenting Plagiarism Free work in order to achieve High Quality Essays. Additionally, we employ Quality Control tools such as plagiarism and grammar checkers while at the same time a Quality Assurance Team to ensure your assignment is a Plagiarism Free masterpiece ready for submission.
}

On-time Delivery

It’s normal to forget an assignment that is due in a few minutes or even hours. Our Professional Team of Writers and 24 Hour Support/Response are always here to help you with an Urgent Essay while at the same time providing you with a High Quality Essay and On time Delivery. Our Team has always been subjected to more tough conditions and have always endured and delivered essays on time.

How to Place an Order

24 Hour Support/Response

At PaperHelpCenter.com, We have a 24 Hour Support/Response. Our 24 Hour Support/Response Team can be reached through Whatsapp, Facebook, Email or a Phone Call

Let’s face it, It can get quite nerve-wracking doing homework assignments especially on a tight deadline by yourself. At PaperHelpCenter.com, we have dealt with enormous types of Essay Writing Assignments within different sets of conditions and time frames and we have received more than exceptional results from our customer reviews. Our Professional Team of Writers is always ready to help and provide High-Quality Essay Writing at flexible pricing within any level of urgency. Our academic paper writers have profound experience in what professors are looking for and are able to tailor-make any paper to your requirements! Our Essay Writing employs Quality Control Tools to make sure what you get matches the price.

You can order any type of content at PaperHelpCenter.com. Do you need an essay for the social science class? No problem. Do you want a lab report for your chemistry course? We can complete it for you! How about multiple-choice questions for the marketing course? We’ll assign a marketing expert to solve them for you! From simple essays to programming assignments to entire dissertations, you can order any kind of academic paper at our website. That’s exactly why so many students from all around the world choose us as their faithful companions throughout their academic journey. We give them the self-confidence they need, so they can continue their studies without being scared that they would fail because of a simple essay