If the government simply printed more money, like fuck tons, and then quietly and I mean quietly and secretly distributed the new money to homeless people or just left bags here and there of say between 100-500$$ would there be inflation? Is there only inflation if people knew the money was printed?
Inflation
Nathan Jenkins
Isaiah Scott
I am also curious about this. Businesses would do better because people would be spending more money
Nicholas Nguyen
The value is based on notions of scarcity however in volumes that matter this wouldn't work.
Most money isnt cash. It's in a computer. They arent literaly minting heaps of coins and cash. It's push a button and a trillion dollars now exists.
Josiah Rogers
Exactly. The money would just circulate like normal. Everyone would feel suddenly confident to buy shit. The sudden influx would be less than initial release because people would also save some of it too.
Jaxson Anderson
>if we quietly inflate the supply of currency, does it still inflate the currency
Yes user, inflation still causes inflation. Of course it does not happen instantly, but it happens.
Jeremiah Williams
But why though? What causes that? Who would know?
John Torres
I`d like to know that too.
What difference would it make, it`s just more money. More money is good, right.
The millionaires have us fooled.
Evan Foster
I doubt there is even a trillion dollars in NZ.
How do you guys even survive, you have nothing but sheep and maybe tourism. How the fuck does NZ even exist with so little resources and low population. How the fuck does your currency even have value on the international markets.
Adam Miller
When more money is printed and distributed, it leads to a situation where roughly the same amount of goods (since production is not & can not increased at the same rate) are being chased by more currency which "automatically" causes it to happen over time. "Price inflation" is not instant or centrally controlled , it is a product of the sheer reality that more money is out there (inflation).
It can be hard to conceptualize the underlying principle when you're still zoomed out to the scale of the entire economy, but try to imagine a small group of people and/or a small group of goods and apply the principle then. The economy is a big web wherein we are all connected, so the injection of "more currency" and the lack of more output will eventually force prices upward to reach equilibrium. Sure in your example some homeless people might get extra stuff in the short term if they spend it quickly enough, but just imagine if every person got a free check today and all went to buy a Ferrari. There are not enough Ferraris for everyone, so the price is going to rise because scarcity exists.
Here's a 1-minute video, maybe this will help:
youtube.com
Wyatt Stewart
>just imagine if every person got a free check today and all went to buy a Ferrari. There are not enough Ferraris for everyone, so the price is going to rise because scarcity exists.
So I'll buy a Maserati instead or wait until a Ferrari is available. What fucking difference does it make in a world of many choices. Today's world economy isn't like 1930s.
Cooper Ortiz
And there are millions of people just like you who will do the exact same thing and cause the price of ALL luxury cars to rise. You fail to understand the underlying principle mate, inflation of currency always leads to an inflation of price because scarcity is a thing, "secrecy" has nothing to do with it.
Alexander Cruz
No, the volume is too low. The government usually prints at least hundreds of millions.
Henry Cruz
>inflation of currency always leads to an inflation of price because scarcity is a thing
The extra buyers with the extra bucks will encourage Ferrari to hire more workers to build more Ferraris. More money, more jobs, no scarcity, no inflation of price.
Bentley Richardson
Inflation doesn't happen because people know there is more money. Inflation happens because people spend more money.
Adrian Collins
inflation is a meme irl and on the internet
Carson Ortiz
Hire more workers to build more Ferraris? Today's factories aren't like the 1930s, it's not like you're doubling up people on an assembly line. They would need to buy automated equipment, as would every other car manufactuer, jacking up the costs of factory machines
Easton Nelson
Ferrari literally won't sell you certain models if they don't like your face, no matter how much money you bring to the table. They want to be an exclusive brand, not the new Fiat.
Joshua Harris
>hire more workers
And how are they going to pay those workers? Everybody just got a free check for hundreds of thousands (enough to buy a ferrari) why the fuck is anybody going to work some mediocre blue collar manufacturing job making "meh" wages?
I know I didn't do the absolute best job of explaining this, but I struggle to understand how you're just not getting this. Did you ever take basic economics in school? Do you even understand the underlying concept of inflation here? Is this just a new level of aussie trolling?
If this were ACTUALLY how it worked, then why hasn't any country done this already? It would solve 99% of their problems to eliminate poverty.
If you inflate the currency, prices will be inflated, it's that simple. Cash is paper, currency is not automatically valuable.
Julian Harris
>What causes that?
Natural prices increases.
Imagine what might happen to motel rates overnight of this happened.
Ryan Morris
You don't fully understand a concept if you're unable to explain it in simple terms to people who don't know anything about it. Why not just simplify everything you said into "if people have more money to spend, the price of goods will rise due to not enough supply to keep up with a sudden rise in demand". Now you can give examples like say every homeless guy wants to buy a laptop, suddenly the demand for laptops increases while the supply is maintained. The reason this example is completely different than your Ferrari one is that noone is going to buy a shitty cheap Ferrari while people might want to get a shitty cheap laptop as long as it's enough to do what they want. The whole point of shitty laptops is that they're supposed to be cheap so if there was a rise in demand surely the supply would be able to react quickly since they are not building luxury cars. What if you printed a million in new money in secrecy and all of it went to hoarders? There is no new spending, no new demand, so inflation wouldn't happen. It seems like it's the logic behind giving liquidity to banks (assuming they won't blow it on more loans)
Bentley Rivera
>You don't fully understand a concept if you're unable to explain it in simple terms to people who don't know anything about it.
No, that's a retarded meme, I just suck at explaining things.
Adam Fisher
>Ferrari literally won't sell you certain models if they don't like your face
Source?
Adrian Campbell
Hunter Reyes
Great, even more jobs, it`s a win win for everybody. These millionaires and billionaires have us all hoodwinked, they don't want to share with the rest of us.
Jayden Morales
Is there still inflation if you create money only to start new businesses ? There's still more money on one hand, but more goods on the other.
Tyler Lopez
Then I will buy from the second hand market and have it fully refurbished like a new car with the extra bucks I have..
Oliver Gonzalez
You will have to pay double or triple the price. Those cars go up in price like crazy
John Robinson
>Everybody just got a free check for hundreds of thousands (enough to buy a ferrari) why the fuck is anybody going to work some mediocre blue collar manufacturing job making "meh" wages?
Because you can't survive by Ferrari alone.
If I don't have other skills I'll need that job to pay my mortgage and put food on the table.
Teehee, yes I`m trolling.
Anthony Rivera
oh come now dont be mean.
we need them for the canzuk world superpower
Jayden Ward
>Everybody just got a free check for hundreds of thousands
Who said hundreds of thousands? Op specifically said small quantities like 100-500$.
>If this were ACTUALLY how it worked, then why hasn't any country done this already? It would solve 99% of their problems to eliminate poverty.
Why would the elites want to eliminate poverty?
David Reyes
>Is there still inflation if you create money
Creating money *literally* is inflation [of the money supply]. I think you mean to ask whether there will still be rising prices (or "price inflation") and the answer is yes, but only because your second sentence includes an error.
>There's still more money on one hand,
But the same total value of your economy exists at the time the additional currency is issued, which makes all of the currency worth less.
>More goods
There won't be though, this is the error. The production of more goods requires more than just additional paper. You need raw goods, workers, etc which are still subject to the effects that I stated earlier (more currency chasing less [raw goods, workers, etc] = rising in [price, wages])
Again, if this were possible then every country would do it constantly. Ask yourself why any country wouldn't want more goods "for free"?
Imagine 4 people on an island who each produce a single different good all day and trade with each other using seashells as currency. Now imagine a bunch of new seashells were dumped into this island economy, would everyone suddenly have more stuff? Of course not, each person would begin demanding more seashells for their output which is unchanged. Even if the seashells were "purposefully" dumped in order to "start new business" there still a finite amount of work that can be done by the existing workers and scarcity still exists.