Reasons Why Countries Dont Print As Much Money As Possible To Eradicate Poverty and Pay Off Debt?
- Have you ever wondered why the State or the Indonesian government did not print the money they wanted to overcome poverty and pay the mountainous debt? Maybe we have ever wondered, if the State prints a lot of money and is distributed to people who cannot afford it, the problem of poverty can be solved easily.
Why do you have to worry about thinking about the debts that have always been controversial? Just print, pay, finish the problem. People are happy, the country is calm … but is that true? If this is true, the State will do it. But what is the reality, until now the State and the government do not also do it, instead even more tightly control the circulation of money, limit it, even to make withdrawals against the money in circulation.
What is the reason? The reason is only one, which is to maintain the value of money itself, if in Indonesia it preserves the value of the Rupiah. Logically, if the amount of something is unlimited, of course the value of something will be weak, and vice versa. And the weak value of this money will have a lot of impact on people’s lives in a country.
Now we discuss one by one, we start from why not print a lot of money to overcome poverty in Indonesia?
Previously, read also: Making money on the internet is still a taboo thing for the people of Indonesia.
Sharing Money Will Not Overcome Poverty
Overcoming poverty means making the poor become capable or affluent people by giving them money. Now try to guess what will happen if that happens? Poor people who originally worked as farmers, builders, traveling sellers, breeders, or other professions, will stop working. Why? Already have money, why does it work? If money runs out there is a country that will give it back.
The above will cause inflation, for example the cessation of small farmers simultaneously will cause scarcity of agricultural materials, meaning that it will have an impact on price increases. And the increase in agricultural prices will certainly cause other prices to increase. That’s just one profession, how much poverty in Indonesia and what is their profession, then how many will stop working? I think there will be a lot.
What is inflation? Very dangerous, if there is inflation then for what makes the poor become capable people, yet prices will also rise which can make them poor again. In addition, what was originally enough for people to have inflation would actually be poor people, while rich people would decrease their purchasing power.
If so, tell the State to print as much money as possible and share it with everyone so that they can become all rich people. It will be even more dangerous, if everyone is rich and has a lot of money, is it possible they want to work? Who wants to be a police and army to protect the security of the country? Who will take care of the government? Who wants to sell to meet their daily needs? Everything will be chaotic, people will act all and it is possible that violence will occur everywhere.
Keep Printing Lots of Money and Keep Working
Okay, let’s say the State continues to print as much money as possible and share it with the public on the condition that they continue to work and carry out their profession as usual. But it will still cause too much money to be circulated. Because everyone is rich and actually does not need to work again, it means throwing away easy money, this causes the price of goods to increase many times. And this will also have an impact on the value of the Rupiah being weak against foreign currencies.
That is, in the world economy the Rupiah will be very weak and the State will have difficulty doing the global economy. After all, the resources for printing money are also limited, although they can make as much as possible but if the ingredients are limited, yes, it’s the same.
If So To Pay A Debt?
We suppose again, what if the State prints as much money as possible to pay off debt without the need to share and distribute it to the public? Is it still a problem? Yes, of course it is still a problem. The reason is, we must first look at the true essence of money itself, namely value. If the State prints money without any supportive reason (for example without comparable economic circulation or guarantees of gold / silver value), in my opinion the State indirectly acknowledges that its own money is of no value.
Second, the Rupiah is not a payment currency that can be accepted in all countries, not like the US Dollar. So to repay debt, the Rupiah must be exchanged for dollars or other currencies. For example, if the Rupiah will be exchanged into US Dollars to pay off debts, then printing as much money as possible later will create a demand for the Rupiah to Dollar not comparable to the demand of the Dollar to Rupiah, the end of the value of the Rupiah will actually impact the overall economy in Indonesia.
Third, if the value of the Rupiah has dropped against the Dollar, the value of debt certainly adjusts. For example, before the debt of 1,000 trillion, if the exchange rate of 1 Dollar is 14,000, the calculation is 1,000 x 14,000. After the Rupiah falls, say the exchange rate becomes 20,000, the calculation becomes 1,000 x 20,000. This will be more detrimental to the State, not to mention there is PR to stabilize the Rupiah again, where the risk can worsen the economy, one of which is inflation, unemployment due to layoffs due to declining export imports, and so on.
Examples of Countries That Have Too Much Printing Money
The country that was very well known for printing too much money was Zimbabwe in 2008/2009. In that country, there was a very crazy inflation, which was 2,200,000% inflation. Just imagine, just 10% inflation has made a headache, especially 2.2 million%? Zimbabwe has also made a bill with a value of 100 trillion Zimbabwean Dollars, yes, 100 trillion can be deposited in the wallet. And the 100 trillion money can only be used to buy 3 eggs, at that time if the Zimbabwean Zomb Dollar was exchanged to 1 US Dollar, then it took 35,000 trillion Zimbabwean Dollars, sad isn’t it?
Aside from Zimbabwe, this beloved country in Indonesia has also done excessive printing of money, namely during the Soekarno presidency. Even though it is not as severe as Zimbabwe, it causes inflation which is very telling to the people. As a result, massive demonstrations exploded which we know together with the term Tritura, which one of the demands of the people was to reduce prices at that time.
What is it, still thinking that the State can easily print money carelessly?
Okay, guys, those are some reasons why the State and the Government don’t print as much money as possible to overcome poverty and pay off their debts. Hopefully the above explanation is useful and adds to your insight. Don’t forget to share this article too, thanks and good luck.