April 4, 2012

Why Not Print More Money?

Antony Davies

Senior Affiliated Scholar

In this Learn Liberty video, Antony Davies explains why the government printing money won't solve the country's economic problems. If the government can print money, why doesn't it just print money and hand it out? Economics Prof. Antony Davies explains that understanding why money was invented can explain why it is not useful for the government to print money to give away. Increasing the amount of money available for goods and services will only increase prices: this is inflation. If everyone has twice as much money but everything costs twice as much as before, are people better off? Having government print money will not increase wealth.