Nearly 60 and I still don't "get" inflation. Can anyone explain? Thank you.

you are viewing a single comment's thread
view the rest of the comments
[–] -1 points 1 year ago* (last edited 1 year ago)

why does government print more money?

Voters want free stuff now! So if a government doesn't spend more than their income, other politicians that do so will get voted in, and the next government will overspend. Therefore governments tend to be in debt perpetually.

It's easier to print the money to get out of the consequences of that debt, than to govern well, create value and get out of debt that way.

It works up untill people think it won't work. A self-fulfilling proficy. (1)

  • source
  • parent