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WHY THE GOVERNMENT BORROW INSTEAD OF PRINTING MORE MONEY
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konnect cash out Every 25th of a new month
Konnect Official
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Earn in Dollars
King
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The most expensive thing in this picture is not even the car.. oh God 💔
Mich Elle
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My mind cut, cause I think say na me dem dey find 😂
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I trust in you, Lord.
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Shedrack3
58 days ago👉 “Why theGovernment Borrows Money Instead of Printing More
Many people often ask: “Why can’t Nigeria just print more money to solve poverty instead of borrowing?”
It looks simple, but the reality is different. Here are the main reasons:
1. Printing Money Causes Inflation 💸
If the government prints too much money, the value of that money drops. For example, if ₦1,000 could buy a bag of rice today, printing excess money could make that same rice cost ₦5,000 tomorrow.
2. Borrowing Builds Trust 🌍
When a government borrows from international organizations (like the World Bank) or investors, it shows that the country has credit worthiness. This attracts foreign investments.
3. Limited Resources 📉
Money itself is not wealth — it only represents goods and services. If money increases but goods don’t, prices will rise uncontrollably.
4. Stability of the Economy ⚖️
Too much printed money weakens the naira in the global market. Borrowing, on the other hand, gives the government controlled funds without flooding the economy with excess cash.
Conclusion:
Printing money may look like an easy solution, but it would only make life harder for citizens due to inflation. Borrowing, though not perfect, helps maintain stability while the country tries to grow its economy.