Im 12 years old and i was just wondering. You know how our country is in debt and everything and we owe alot of people money? Why cant we [like the government] make more money like paper money so we wont be in debt. Can you explain please and thank you!
money has to have a value. If a country starts printing money its currency will fast loose value. so the debt will never be paid off. Only way to return debt is by giving value to your currency i.e. by exporting goods required by other countries and using that value to pay your debts. extreme money supply will lead to hyper inflation