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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (8060)3/2/2009 7:56:54 AM
From: average joe  Read Replies (1) | Respond to of 103300
 
Printing more money to stimulate the economy does a couple of things.

1) Dilutes the money supply making the dollar in your pocket less valuable.

2) Penalizes people and businesses who are good managers
by making their investment less valuable.

3) Takes away incentive to be inventive by new entrepreneurs.

4) Pensions off the old baggage at the expense of new talent.

5) Props up the status quo of old failed business models in expense of new innovative ones.

6) Guarantees that people will take their money off shore and put into gold backed currencies.

en.wikipedia.org

Good business and business models will still succeed unfortunately it will be harder for them because the stimulus package will eventually cause a greater financial collapse than normally would have happened.