ClassHall Instructor Staff asked 6 years ago
Every nation on earth has one common problem which seems to defy solutions, no matter how smart the citizens are. That problem might be given big names such as economic meltdown, financial crisis, poverty, underdevelopment, as so on, but it actually boils down to one thing – money, or the lack of it.
So I was just wondering why a nation with insufficient resources to fund development projects or pay workers’ salaries can not just print as much currency notes as it needs to solve these problems. At least, everyone will be smiling to the bank. 🙂
Eseose Otoboh answered 6 years ago
Printing more money would only result in an extremely devalued and worthless currency. The prices of commodities will inflate which therefore implies that the rate of poverty will increase.
But the prices of commodities in the country continues to skyrocket. Prices of goods and services defy the law of gravity because they go up and never come down. Does this mean the government of Nigeria is printing and releasing more currency notes into the economy?
Why are prices going up so rapidly if the government is not printing money indiscriminately?
Ismail Olawuyi
replied 5 years ago Money is a limited resources
Eseose Otoboh answered 6 years ago
Of course they are. But it is going into the hands of just few persons
I see. But how can we ensure the money and resources are equitably distributed?
Halima Ahmadu