Would this work? If not why? Please explain.

[Confidential Profile]

I know that printing money will cause inflation to go up but what if you print more money and you make a law that the prices of things to remain the same. So, everything would stay at the same price and everyone would receive (lets say a billion dollars/pounds etc) lots of money, and so everyone can be rich!
Would this work? Yes, no? If no, then whyy??

[Otoel Profile]

I know that printing money will cause inflation to go up but what if you print more money and you make a law that the prices of things to remain the same. So, everything would stay at the same price and everyone would receive (lets say a billion dollars/pounds etc) lots of money, and so everyone can be rich!
Would this work? Yes, no? If no, then whyy??

1. Printing money causes deflation

2. If there is more money...things cost more, think about how much things used to cost 100 years ago...

3. The elite will never EVER allow everyone to be rich... get that trough your head, they are not here to make the world a better place, they are here to control us trough the many systems that were set-up, from the monetary system to the cellphone you have.

[7hidden7agenda7 Profile]

I know that printing money will cause inflation to go up but what if you print more money and you make a law that the prices of things to remain the same. So, everything would stay at the same price and everyone would receive (lets say a billion dollars/pounds etc) lots of money, and so everyone can be rich!
Would this work? Yes, no? If no, then whyy??

No, it wouldn't work. people would go out and buy everything they could, shops would become empty and the economy would cease as people quit their jobs leaving no one to actually supply the demand.

otoels point number 1 is just plain wrong. he has no idea what inflation or deflation is.
Inflation means that each new dollar is worth less than the previous dollar, which means that prices go up because it cost more new dollars than old dollars. this is dependent on a few factors, but most notably if you increase the money supply arbetrarily (printing money) or if the supply of goods and services is reduced (goods and services become more valuable and require more money to purchase)

Deflation means each new dollar is worth MORE than the previous dollar, which means prices go DOWN, because it costs less new dollars than old dollars. again it's dependent on various factors, most notably if you DECREASE the money supply (destroying money (interest rates should do this exept the central banks don't destroy the money, they keep it as profit)) or if the supply of goods and services is increased (goods and services become LESS valuable and require less money to purchase due to competition (assuming price fixing isn't an issue))

Ideally the money supply should barely exceed the supply of goods and services. increase the money supply and the cost of everything rises in order to limit the demand, otherwise - see my first paragraph.

[Scarecro Profile]

[Confidential Profile]

I know that printing money will cause inflation to go up but what if you print more money and you make a law that the prices of things to remain the same. So, everything would stay at the same price and everyone would receive (lets say a billion dollars/pounds etc) lots of money, and so everyone can be rich!
Would this work? Yes, no? If no, then whyy??

1. Printing money causes deflation

2. If there is more money...things cost more, think about how much things used to cost 100 years ago...

3. The elite will never EVER allow everyone to be rich... get that trough your head, they are not here to make the world a better place, they are here to control us trough the many systems that were set-up, from the monetary system to the cellphone you have.

1. Printing money causes INFLATION.

2. That's exactly why I suggested that you make a law to keep things at the same price.

3. They won't stay in power forever.

So yeah, making laws that will cause the prices of products and services to not change. Also, say there is a new product in the market, the government will limit the price to stop inflation. This will probably reduce productivity as less people will want to make products as they'll become lazy and not do much however you should make education free at university and something which you must do.

[Otoel Profile]

I have a solution for ya... how about we the people start our own monetary system outside of the bank one? If we all agree to do fair trade between each other then we would not need money anymore.. the only problem with that is someone would still have to decide how much something was worth....

For example dude.. hows about I trade 10 camels and a goat for your oldest daugther?

[Confidential Profile]

I know that printing money will cause inflation to go up but what if you print more money and you make a law that the prices of things to remain the same. So, everything would stay at the same price and everyone would receive (lets say a billion dollars/pounds etc) lots of money, and so everyone can be rich!
Would this work? Yes, no? If no, then whyy??

No, it wouldn't work. people would go out and buy everything they could, shops would become empty and the economy would cease as people quit their jobs leaving no one to actually supply the demand.

otoels point number 1 is just plain wrong. he has no idea what inflation or deflation is.
Inflation means that each new dollar is worth less than the previous dollar, which means that prices go up because it cost more new dollars than old dollars. this is dependent on a few factors, but most notably if you increase the money supply arbetrarily (printing money) or if the supply of goods and services is reduced (goods and services become more valuable and require more money to purchase)

Deflation means each new dollar is worth MORE than the previous dollar, which means prices go DOWN, because it costs less new dollars than old dollars. again it's dependent on various factors, most notably if you DECREASE the money supply (destroying money (interest rates should do this exept the central banks don't destroy the money, they keep it as profit)) or if the supply of goods and services is increased (goods and services become LESS valuable and require less money to purchase due to competition (assuming price fixing isn't an issue))

Ideally the money supply should barely exceed the supply of goods and services. increase the money supply and the cost of everything rises in order to limit the demand, otherwise - see my first paragraph.

But what if you limit the amount of things that you can buy? Also, make university free and something that you must do so that the productivity levels don't drop.

[Endless16 Profile]

I know that printing money will cause inflation to go up but what if you print more money and you make a law that the prices of things to remain the same. So, everything would stay at the same price and everyone would receive (lets say a billion dollars/pounds etc) lots of money, and so everyone can be rich!
Would this work? Yes, no? If no, then whyy??

No, it wouldn't work. people would go out and buy everything they could, shops would become empty and the economy would cease as people quit their jobs leaving no one to actually supply the demand.

otoels point number 1 is just plain wrong. he has no idea what inflation or deflation is.
Inflation means that each new dollar is worth less than the previous dollar, which means that prices go up because it cost more new dollars than old dollars. this is dependent on a few factors, but most notably if you increase the money supply arbetrarily (printing money) or if the supply of goods and services is reduced (goods and services become more valuable and require more money to purchase)

Deflation means each new dollar is worth MORE than the previous dollar, which means prices go DOWN, because it costs less new dollars than old dollars. again it's dependent on various factors, most notably if you DECREASE the money supply (destroying money (interest rates should do this exept the central banks don't destroy the money, they keep it as profit)) or if the supply of goods and services is increased (goods and services become LESS valuable and require less money to purchase due to competition (assuming price fixing isn't an issue))

Ideally the money supply should barely exceed the supply of goods and services. increase the money supply and the cost of everything rises in order to limit the demand, otherwise - see my first paragraph.

It's true, if everyone had money, nobody would have incentive to work or be productive, such is the way the world has been shaped.

Deflation can be as bad as inflation, it just so happens the modern problem is inflation...

The trouble with the present system, is that it's been around for so many generations, and people devote their lives to perpetuate it.

It has held back technology probably more so than the religions did in the Dark Ages in recent times, although, the irony is, without money giving the encouragement to learn new things, there would be no modern technological development.

Keep money and people will only develop technology as far as it is profitable, do away with money and people will have no incentive to develop new technologies past what keeps them alive and happy.

[Confidential Profile]

That's why I said that you would have to make university compulsory and it would be free, any type of knowledge would be free. Also the education systems in the world could do with a good changing, improving secondary and primary education would be a start.

[7hidden7agenda7 Profile]

limit the amount of things people can buy, and prices SKYROCKET.

The IDEAL(ish) solution(ish) is to keep prices the same, by increasing and decreasing the available money supply. The money supply will allways need to increase in order to meet an increase in production, but if the production levels drop, then the money supply also need to drop to keep prices stable. However, it's only a temporary fix, demand for goods can only be met if there are enough resources to meet the demand, as soon as resources become scarce the price of that resource goes up independently of the money supply, and the price of everythign that depends on that resource goes up accordingly.