The U.S government should introduce more money into the economy to increase buying power and stimulate the economy. As farmers, buying power is essential for our business being that we are in a supply and demand relationship. Increased consumption power will bring more money to the farmers who ,in turn, can spend that money and implement it into the economy. Introduced money will cause inflation and that helps us as small farmers. Inflation will raise prices on a widespread scale and will allow us to better compete with big, mass production farmers. The only way inflation does not work in our favor is if big multi-national farmers decide to overproduce, therefore counteracting inflation.
The US Federal Government needs to introduce more currency in order to raise wages and prices. This will lead to greater demand in the economy solving overproduction. Currently farmers face domestic and foreign competition. This leads to more production of crops. However, this means that they must then lower prices. They cannot bring in enough money to pay for costs. So the government needs to artificially raise prices by introducing more money into the economy.
Yes, we as farmers (Sam Pratt and Christopher Carr) believe that more money should be injected into the economy because it follows our business model of continuously producing more and lowering prices in order to remain competitive with other farmers. With more money in the economy, buyers will be able to consume more; therefore adding to the cycle. Also because of inflation, farmers will need to raise their prices.
Farmers need more money in the economy so they can survive. As of now, farmers are trapped in a downward spiral that forces their prices through the floor. Adding in more money raises wages and prices. Consumption would increase as a result of more money in the economy. Currently, farmers' competition requires them to decrease prices to the point that they are not making profit anymore. Farmers need to survive, and that requires more money in the economy.
If consumers receive more money, then they will receive more consuming power which can lead to farmers gaining more money. This is because the farmers would have to raise prices of their product to accommodate for inflation. Farmers would expect consumers to buy more but it is not a guarantee. Even though their is a risk in still not getting more consumers buying their product they need to take the risk. Since industrialism began small farmers have been on a downward spiral losing profits every year. Adding money to the economy would be able to change this so that farmers could afford the essentials they need such as housing, water, and food.
Yes, as a farmer, I think that the US federal government should introduce more money into the economy for the reason that it boots consumption power. With a boost in consumption power costumers are more likely to buy my goods. An increase in buying powers boosts the economy. Inflation will increase consumption and therefore provide a healthy competition in economy.
As consumers living near farm lands, we feel that it is in the best interest for the government to stimulate the economy. This will enable us to expand our businesses by increasing our production, allowing us to buy new machinery and will allow for us to increase our work force and allow us to expand. Although there may be an inflation of goods, workers wages would also rise. This would help the people living in rural areas, like us, to be able to produce more while not having a negative effect. Because we can produce more, we will be able to lower our prices and make goods more affordable for those living in urban areas.
At this point in time, farmers are competing locally and foreignly. This cause them to mass produce and lower prices. If the government introduce more money into the economy, the common person will receive more money in wages. This will in turn give them more money to consume, and the farmer will not have to lower their prices on goods.
On one hand if the government introduces too much money into the economy then inflation is going to harm the market, as unstable prices leads to implicit added costs. For example in Argentina's extreme case, local business had to change their prices on a daily basis. On the other hand if the government stops printing money then deflation could harm the economy as is the case with Japan.
Introducing money is a good way of taxing the rich and the poor in the same way and can have a good impact on the growing concern of inequality (GINI index). This taxation happens because when the government prints money it reduces the value of money (i.E. Less material gain for each dollar). Or equivalently it is the same as if we had gave a proportional amount of money relative to our income in taxes to the government.
In order for the economy to flourish, consumers must buy products to keep the economy flowing. When more money is introduced into the economy, this causes inflation, raising prices for all goods. Goods that consumers were once able to buy, now have become to expensive for consumers to buy. Also, taxes will increase due to the inflated economy. This will set consumers back even more, preventing them to buy.
The US Federal Government does NOT needs to introduce more currency, for increasing the amount of currency just causes inflations which would hurt industrial mass productioners. Yes there would be more money, but the monies would not be worth as much. This will lead to greater demand in the economy solving overproduction. Currently farmers face domestic and foreign competition, which means that they would just have to work harder to compete; introducing more currency wont solve this problem. Larger agricultural companies leads to more production of crops. However, this means that they must not cause inflation. There is only so much money in the federal reserve, printing moer money does not mean that there would be more money.
We are bankers during the Industrial Revolution and we disagree with the idea of adding more money into an economy as an attempt to increase buying power. This is so for two reasons. First, adding more money to an economy (money that's backed by a tangible item) will inevitably increase inflation. Inflation ultimately destroys buying power as the cost of good increases past average income while their value either stagnates or decreases simultaneously. From the perspective of banks, this is disadvantageous since mitigates the ability for large and small businesses to purchase from banks and takeout loans.
The vast majority of consumers in our market are consumers, and with the introduction to more goods in our market the prices of the goods that we buy daily will greatly increase. Even though we will benefit from a rise in pay from our steady factory working jobs, this money will now be worth much much less. As we now have less money we cannot consume as many goods from the economy. Also, with this, a major affect of this would be that this would occur to many of the other consumers like other resulting in a major drop of sales for these companies who rely on us for their capital. Yes, the farmers will benefit from this introduction of money because then all small farmers would need to raise their prices up and they would not have as much competition for the lower price in the market. But, the farmers benefit is much smaller in relation to the loss that we, the consumers would take. So therefore vote no for their benefit of not just the consumers, but the rest of the nation!
This could lead to inflation. Inflation would slow down economic growth. If we slow economic growth, it could lead to a recession and/or depression in the U.S.A. Also we don't want to consume more? The more we consume, the less money we make off export. When we exports, we bring in money for the army and the government. If we do consume more, we would lose money in the government.
We say no because an increase in money would lead to inflation, causing our United States dollar to be worth less. The inflation would lead to slower economic growth because the costs of goods and services go up, which causes corporations to not have as much money to give raises and hire new employees as they did before.
Bankers want to invest in Industrialisation. Industries want to mass produce and the biggest fear of industry is inflation. This is because Industries want to keep prices low, and if the government introduces more money, prices will inflate; therefore increasing prices. The increased prices will make it difficult for Industries to mass produce.
I'm not sure if by 'money' they mean real wealth or monetary base (MB), so I'll answer assuming each respectively.
Real wealth: The government doesn't have any money. People have money. The government can only spend money if it takes it from someone else through some form of taxation. Taxation obviously reduces consumption, so at best it's a wash. They can borrow money, and use that to 'stimulate' the economy, but we all recognize that as taxation in the future, and we'll change our consumption patterns today to reflect our expectations about future taxes.
MB: To the best of my knowledge, the US federal government doesn't introduce MB, aside from some coins. The FED manages most of the monetary policy. Introducing more currency doesn't actually change very much in the long run. That's sort of like how decreasing the size of a centimeter doesn't make everybody taller. If people are expecting the change, they'll react accordingly, and there won't be much of an effect in the short run either. If people aren't expecting any change, they might be tricked into making foolish investments until they realize what's happening, but I can't see how that would be good for the economy. It might make the numbers look good, but people can't eat numbers.
As bankers we want to invest in industrialization. If the government let more money into the economy, then consumers would take that money and be able to spend it on expensive products. Companies don't want their products to be expensive because they want to mass produce. Mass production requires the products are sold in large quantities, and the products are cheap for consumers to buy. Therefore, more profit would be made. However, if the government introduced more money into the economy, then inflation would happen. As a result of inflation, prices will go up, and industry will not sell as much product. As a result, banks will not gain as much money on their investment.
Adding money to the economy starts the process of inflation that lowers the value of currency and makes investments less profitable. As inflation increases, the prices of things go up and people will buy less. This hurts us bankers because this hurts our investments in industry will have less worth if people are not buying as much due to inflation and increased prices. Companies will be forced to fire workers in order to maintain growth and our investments will be worth less.