manishsinghon
Manish Singh
Hi guys,
Pumping money into the economy actually doesn't solve the problem. As more and more money is being pumped, accumulation of money occurs in the society. It might be in the hands of some politically powerful people and it rarely finds the needy. Increase in money has another adverse effect too. When people have more money, their demands increase and they are willing to pay more than they would have actually payed for that before. So the sellers tend to increase the prices of commodities and services. In effect the increase in money didn't do its job.
Please share your views
Pumping money into the economy actually doesn't solve the problem. As more and more money is being pumped, accumulation of money occurs in the society. It might be in the hands of some politically powerful people and it rarely finds the needy. Increase in money has another adverse effect too. When people have more money, their demands increase and they are willing to pay more than they would have actually payed for that before. So the sellers tend to increase the prices of commodities and services. In effect the increase in money didn't do its job.
Please share your views