The Instigator
Shikhar87
Pro (for)
Tied
0 Points
The Contender
Viet
Con (against)
Tied
0 Points

poor country should print more money

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Voting Style: Open Point System: 7 Point
Started: 1/13/2014 Category: Economics
Updated: 3 years ago Status: Post Voting Period
Viewed: 714 times Debate No: 43870
Debate Rounds (5)
Comments (1)
Votes (0)

 

Shikhar87

Pro

Yes, I think a country in need should print more money not for distributing to its citizens but for the benefit of all. A government or state agency can use this money wisely for nation"s critical needs like food, energy , health and education.
In India, the cost of a bypass surgery is approx. 8,120.00 USD, If the government can provide world class health services to its citizen for free of cost, what"s harm in that.
The government can introduce non polluting alternatives of transportation for negligible cost, which encourage to people to use public vehicle, leads to less consumption of nonrenewable energy sources (Crude Oil) and decrease the level of pollution.
Above given both the examples show, if a country can take care of critical need of it"s citizens and lead it"s citizen towards better life, they can be more productive and save lot of money which ultimately help the country"s economy.
Viet

Con

Thanks to pro for starting the debate. No, poor countries cannot just "print more money" without regulation, because:


  1. New money added into circulation (printing more cash, minting more coins) must be done so according to economic indicators and factors pertaining to the country a currency belongs to. The amount of money in circulation must reflect the economic performance and productivity of that country, and adding new money must be adjusted accordingly. The amount of money in circulation must reflect the "value" of what a country's economy is worth. Simply printing cash and minting coins excessively without control devaluates the currency, as the excess money has no value and is just worthless colourful printed paper / fancy-looking metal discs.

  2. Devaluation of currency as result of uncontrolled minting will severely damage the country's economy, like cause hyperinflation, and plunge the national economy into recession or depression, causing serious financial and economic hardship on its citizens. This is exactly what happened in Weimar Germany in the 1920s and Zimbabwe several years ago. In Germany, they were forced to pay millions in war reparations to France, UK, US and other winning countries of World War I as monetary restitution. The German gov't thought it can pay the reparations off by just printing more money, more Deutschemarks. What happened after was that the currency devaluated, economic depression set in (later excarbated by the worldwide Great Depression), causing much hardship for German people who had to pay a much more for goods and services. Similar thing in Zimbabwe where Mugabe's regime printed more money, and recession set in.

  3. Damaged economy as result of minting too much money can lead to dangerous violence and/or extremism. Riots, revolutions, and extremist political ideas/groups gain power and support, tend to be ignited due to dire economic conditions in the region. Like in Germany, where many started to support Nazism as they thought it offered them hope for economic improvement, as well as scapegoats to blame their economic troubles on. Nazis were later voted into government.

Debate Round No. 1
Shikhar87

Pro

Thanks for letting me know the side effects of printing more money, but whatever uses I mentioned earlier they are supposed to do in a controlled manner and for specific task as well as time. I am not telling to distribute money directly to the people, but invest that money for the betterment of its citizens under the supervision of a government agency. Money won"t circulate in a free market, only authorized institution can use it for society benefits. It shouldn't be a continual practice, but for the tough time only. If a poor country borrows some money from the world bank and not able to pay back, this is also a loss to the world economy. My point is, the excess money should only use for essential "need" not for desire or wants of a society.
Viet

Con

Thank you to pro for a response. Unfortunately, if other countries find out that the Indian government, or any other country, "prints more money" even more limited, internal government use, devaluation will still set in imposed by foreign countries - foreigners will not accept and no longer trust the Indian rupee value that the Bank of India says. Devaluation, along with other economic consequences such as decreased credit rating, will be severely devastating to the Indian economy and people - whatever initial "advantages" will be outweighed big time. Business is business, they don't care about anyone's well-being except for theirs. I wholeheartedly support the reasons why you want to "print more money" and the limited, internal uses to better the lives of the Indian people, however it will not work, and foreigners will find out eventually. The good news is, India is a rapidly emerging power with a rapidly-growing economy and ever-expanding middle-class, and this will gradually lift more people out of poverty.
Debate Round No. 2
Shikhar87

Pro

Shikhar87 forfeited this round.
Viet

Con

Continue to next round.
Debate Round No. 3
Shikhar87

Pro

Shikhar87 forfeited this round.
Viet

Con

Viet forfeited this round.
Debate Round No. 4
Shikhar87

Pro

Shikhar87 forfeited this round.
Viet

Con

Viet forfeited this round.
Debate Round No. 5
1 comment has been posted on this debate.
Posted by Masonh928 3 years ago
Masonh928
??? If they gave people more money prices would skyrocket and And it would be the same worth. Businesses would go bankrupt. Stock markets would inevitably crash.
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