Why Money isn’t Printed to Pay Off Debt (Curiosity Journal #5)

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Before Watching the TED-ED Video: I feel that the government does not print money to pay off debt due to the fact that immense inflation would ensue.

After Watching the TED-ED Video: After watching the TED-ED video, I learned that my guess was correct. The video explained inflation, stating that when more money is printed, it’s value will drop. This can go out of hand very quickly; take the most recent example: Zimbabwe. In 2008, Zimbabwe printed a great number of currency notes in order to pay of government debt, causing massive inflation. In its peak, the inflation reached 6.5…SEXTILLION (20 zeroes) percent! Prices doubled every 24 hours, and, ironically, the government attempted to solve the problem by printing MORE money. Another example is found in Holland, where inflation got so bad that at one point all the bank notes in Holland were equivalent to 1/10… of a U.S PENNY. Clearly, the U.S government should never print money to pay off debt, as the inflation would decimate the economy.

Why I’m Glad That I Took the Time to be Curious: I am glad that I took the time to be curious, as I now understand the undeniable risk of inflation, and now, whenever a gold or silver investment company talks about inflation, I will have a better understanding of what they are saying. Plus, now that I know the hazards, I may invest in gold and silver when I am an adult in order to protect myself against the danger of inflation. If you wish to watch the video and also learn about inflation, click the picture above and watch the video on TED-ED, it is extremely interesting, and you will be educated on the threat of inflation, just as I have been.