"Doug Miller" wrote in message
t...
In article , "Adam Corolla"
wrote:
[snip]
Money is probably the most desired thing there is, because it can be
exchanged for just about anything. So, the varying factor in its value
will
be how easy it is to get.

If all the tree leaves and blades of grass became various denominations of
money, then money would be worthless. Not because there's more OF it, but
because it's easy to get.

What you're missing is that it's easy to get because there's more of it.

If the government printed five hundred trillion
dollars tomorrow and sealed it all away so no one could get to it, the
value
of money wouldn't change even there's a hell of a lot more of it because
it's no easier to obtain. Do you agree?

Obvious -- but so what? They don't do that. They print it, and then
release it
into circulation.

Now, do you see where I'm going with this? When the government prints
additional money, how does that extra money make it easier to obtain a
given
amount of it? Let's say the government opened the vault with the 500
trillion in it and did with it whatever they do with all the extra money
they print (which is what? I don't know.)

What do they do with it? They give a hell of a lot of it away.

How does that extra money make
money easier to obtain? Do all companies suddenly give raises when they
find out there's more money in the economy, so that money becomes easier
to
obtain? I think the key here is in finding out what the government does
with the extra money. I'll be grateful to anyone who can explain that to
me.

Suggest you start with a good textbook on macroeconomics from your public
library.

--
Regards,
Doug Miller (alphageek at milmac dot com)


You didn't really answer my questions. Probably my fault for my rambling,
random style in my post--I apologize, I was very drowsy then.
I'll try to state my questions as clearly as possible.

1. How does the government's printing more money make money easier to
obtain? Can you give an example, lease?

2. What do you mean by "they release it into circulation"? This is the
crucial point, because as I explained, there being more of something (like
money) doesn't make that thing less valuable--it's the ease of obtaining it
which determines its value. No one I know has access to some percentage of
the "money in circulation." People draw wages or salaries, or sell things
to people who draw wages or salaries. If the government dumped a trillion
bucks "into circulation" tomorrow for example, by what mechanism would it
cause prices to rise?

For example, let's say I raise corn. My sale price of corn is based on my
cost to raise it and my profit margin. The only way I'm going to raise my
prices is if the demand for corn goes up vs. the supply and I can make more
profit, or if my expenses rise. My expenses may include electricity, water,
fuel, equipment and various chemicals.

3. "They give a hell of a lot of it away." So, when the government prints
extra currency, they give much of it away? Do you mean in handouts such as
veterans benefits, social security, disaster relief, foreign aid and such?

4. During times of high unemployment and layoffs, money becomes more
difficult to obtain. However, these times are not usually noted for low
inflation or deflation. Why?

The questions I'm asking don't require pages and pages of complicated
answers, just a few sentences will suffice. Therefore, the answer "go read
a book" will be taken as an admission that you don't know the answers.

Also, I would like to know if you hold the belief that reducing taxes
results in stimulation of the US economy which ends up bringing more income
into the government by increased tax revenue.