KENAPA GA CETAK UANG UNTUK BERANTAS KEMISKINAN?

Ngomongin Uang

11 Apr 202009:50

Summary

TLDRThe video explores why governments can't simply print large amounts of money to give to the poor, using historical examples like Hungary after WWI and the reign of Mansa Musa. In Hungary, excessive money printing led to hyperinflation, drastically reducing the value of their currency. Similarly, Mansa Musa's gold distribution during his pilgrimage caused a devaluation of gold. The video explains how printing too much money leads to inflation, where prices rise as demand exceeds supply, diminishing the currency's value. Careful economic planning is needed to avoid such disasters.

Takeaways

💡 Printing excessive money and distributing it to the population can cause severe economic consequences.
📊 In 2019, Indonesia's poverty rate was 9.22%, equivalent to 25 million people living below the poverty line.
📉 Historical example: Hungary printed excessive money after World War I, which led to the collapse of its currency, Kronen, causing hyperinflation.
💸 In 1924, Hungary’s currency devalued dramatically, with 1 USD equaling 70,000 Kronen, a 1.4 million percent devaluation in 10 years.
⚠️ Post-World War II Hungary saw further hyperinflation, with the value of the Pengö currency plummeting and inflation reaching 150,000% per day.
🪙 Another historical case is Mansa Musa of Mali, whose generous gold distributions during his pilgrimage caused a massive drop in gold’s value in the Middle East.
🚨 Both Hungary and Mansa Musa's stories show that flooding the economy with money or valuable resources leads to devaluation and hyperinflation.
📈 When too much money is printed, consumer demand increases but the supply of goods remains the same, leading to inflation.
🛍️ Inflation spikes like those seen during holidays such as Eid can occur when extra money circulates in the economy, increasing demand and prices.
🏦 Governments must carefully manage money supply, considering economic growth and consumer needs to avoid destabilizing inflation.

Q & A

Why can't the government just print unlimited money and give it to the poor?
-Printing unlimited money and distributing it to the poor would lead to inflation, where prices for goods and services rise dramatically. The increase in money supply without a corresponding increase in goods and services would devalue the currency.
What happened when Hungary printed excessive amounts of money after World War I?
-Hungary printed large amounts of money to cover its budget deficits and stimulate the economy, but this caused the value of its currency (Kronen) to collapse. Within 10 years, the value of the Kronen dropped so much that 1 US dollar was equivalent to 70,000 Kronen, leading to massive inflation.
How does the concept of inflation relate to printing more money?
-Inflation occurs when the supply of money increases without a corresponding increase in goods and services. This leads to higher demand and higher prices, which diminishes the purchasing power of the currency.
What example from history illustrates the dangers of distributing large amounts of money to the public?
-In 1945-1946, Hungary experienced hyperinflation when it flooded the market with its new currency, Pengö. Prices skyrocketed, and the inflation rate reached 150,000% per day. Workers had to renegotiate wages daily because the currency lost value so quickly.
What was the impact of Mansa Musa distributing gold during his pilgrimage in 1324?
-Mansa Musa, the emperor of Mali, gave away large amounts of gold during his pilgrimage, which caused the value of gold to plummet in the Middle East and parts of Africa. This devalued the currency in those regions and led to long-term economic disruption.
Why does increasing the amount of money in circulation lead to price hikes?
-When people have more money, they tend to spend more, increasing demand for goods and services. If supply doesn't keep up with demand, prices rise, leading to inflation. This reduces the value of money, making it worth less over time.
How does the example of Indonesia's annual inflation during Ramadan relate to the concept of printing money?
-During Ramadan, people receive extra income through THR (holiday bonuses), which increases their spending. This temporary increase in purchasing power leads to higher demand for goods, causing prices to rise. Similarly, if the government prints money, the sudden increase in money supply would have a similar inflationary effect.
What economic principle prevents governments from printing unlimited money?
-Governments must consider the balance between money supply and economic output. Printing too much money without an increase in goods and services leads to inflation. Central banks like Bank Indonesia conduct careful analysis to ensure that money supply growth aligns with economic growth.
How does inflation erode the value of wages over time?
-As inflation increases, the prices of goods and services rise, but wages may not increase at the same rate. This reduces the purchasing power of workers, meaning their income buys less than it did before, effectively lowering their standard of living.
What are the long-term consequences of hyperinflation for an economy?
-Hyperinflation can destroy the value of a country's currency, causing financial instability. It leads to loss of trust in the currency, reduced investment, and severe economic hardship as people struggle to afford basic goods and services. It can take decades for an economy to recover.

Outlines

00:00

💡 Why Not Print Money to Solve Poverty?

The paragraph raises the question of why governments don't just print more money to give to the poor. It starts with a discussion on Indonesia's poverty rate, which is at 9.22%, or about 25 million people, and poses the thought-provoking question of whether printing money and distributing it could solve poverty. The speaker introduces the concept that excessive money printing could have serious economic consequences, hinting at the detailed explanation that will follow. Luna, the host, invites viewers to explore historical examples to understand these consequences.

05:05

📉 Hungary's Hyperinflation After World War I

This section recounts the historical example of Hungary after World War I. As a losing country, Hungary's economy collapsed, and the government printed massive amounts of money to cover deficits and boost the economy. The Hungarian currency, Kronen, depreciated severely—by over 1,400,000% within 10 years, leading to hyperinflation. The analogy is drawn with the Indonesian Rupiah, illustrating the extreme devaluation Hungary experienced. The continued money printing even after World War II worsened inflation, resulting in the highest inflation rate in history, where the price of goods skyrocketed daily, and wages had to be renegotiated every day.

👑 Mansa Musa’s Gold Distribution and Its Consequences

The third paragraph introduces another historical example from the 14th century, featuring Mansa Musa, the wealthiest king of Mali. During his pilgrimage to Mecca, he generously distributed vast amounts of gold to the poor in cities like Cairo and Mecca. However, his actions inadvertently caused the value of gold to plummet in the region, leading to long-term economic problems such as increased prices and reduced purchasing power. This highlights that even good intentions, such as helping the poor by distributing wealth, can destabilize the economy when done excessively and without foresight.

📊 Printing Money Leads to Inflation

This paragraph offers a technical explanation of why printing excessive amounts of money leads to inflation. It outlines how distributing more money increases consumer purchasing power and leads to a surge in demand for goods and services. With supply remaining constant, this drives prices up. The analogy of price hikes during the Eid holidays is used to illustrate how more money in circulation can cause inflation, just as the holiday bonus (THR) leads to temporary price increases. The lesson is that money printing should be controlled, and economies should be carefully managed to prevent inflation from spiraling out of control.

Mindmap

Keywords

💡Inflation

Inflation refers to the general increase in prices and the fall in the purchasing value of money. In the video, inflation is a key theme, showing how printing excessive money without economic backing leads to skyrocketing prices. For instance, the script explains how Hungary faced hyperinflation, where daily inflation reached 150,000%, making basic goods unaffordable.

💡Money Printing

Money printing is the process by which a government or central bank creates new currency. In the video, it highlights the dangers of excessive money printing, explaining historical examples like Hungary after World War I, where overproduction of money led to economic collapse. The video's central question revolves around why governments can't just print unlimited money to help the poor.

💡Hyperinflation

Hyperinflation is extreme, rapid inflation where prices increase uncontrollably. The video discusses how Hungary experienced hyperinflation in the 1920s and 1940s, with prices rising to absurd levels (e.g., 1 trillion trillion Pengö for basic goods) due to the government printing too much money.

💡Supply and Demand

Supply and demand is an economic concept where the availability of goods (supply) and the desire for them (demand) determine their price. The video explains that when money is printed and distributed excessively, demand rises without a corresponding increase in supply, causing prices to spike.

💡Central Bank

A central bank is the institution responsible for managing a country’s currency, money supply, and interest rates. In the context of the video, the central bank of a country, such as Bank Indonesia, is presented as the authority that controls money printing and ensures it is done responsibly to avoid inflation.

💡Hungary

Hungary is used as a historical case study in the video to illustrate the consequences of unchecked money printing. After World War I and again after World War II, Hungary’s government printed massive amounts of money, leading to hyperinflation and a collapse in the value of its currency.

💡Mansa Musa

Mansa Musa was a 14th-century emperor of the Mali Empire, known for his immense wealth. In the video, his story is used as an example of how distributing large amounts of wealth (gold in this case) can lead to inflation. During his pilgrimage, he gave away so much gold that its value plummeted in the regions he visited.

💡Deficit

A deficit occurs when a government spends more money than it collects in revenue. In the video, Hungary’s economic deficit after the world wars led the government to print more money to cover its shortfall, which in turn caused hyperinflation.

💡Purchasing Power

Purchasing power refers to the value of money in terms of how much goods or services it can buy. The video illustrates how printing excessive money reduces purchasing power, as seen in the Hungarian example where people needed more and more money to buy the same goods due to inflation.

💡THR (Tunjangan Hari Raya)

THR refers to the holiday bonus given to employees in Indonesia, particularly before major religious holidays. In the video, this is used as a smaller-scale example to explain inflation, where the increase in disposable income due to THR leads to higher demand and rising prices, similar to what would happen if the government printed and distributed more money.

Highlights

Pemerintah tidak bisa mencetak uang sebanyak-banyaknya dan membagikannya ke masyarakat karena itu akan menyebabkan inflasi yang sangat tinggi.

Kasus nyata dari sejarah yang menunjukkan dampak buruk mencetak uang berlebihan terjadi di Hongaria setelah Perang Dunia I, ketika nilai tukar Kronen melemah drastis.

Pada 1924, 1 Dolar Amerika setara dengan 70.000 Kronen, menunjukkan pelemahan nilai tukar hingga 1.400.000% dalam 10 tahun akibat kebijakan mencetak uang.

Setelah Perang Dunia II, Hongaria kembali mencetak uang dalam mata uang Pengö, menyebabkan inflasi harian tertinggi dalam sejarah, mencapai 150.000%.

Inflasi menyebabkan harga barang di Hongaria naik dari 379 Pengö menjadi 1 triliun triliun Pengö hanya dalam beberapa bulan.

Pada masa Raja Mansa Musa dari Kekaisaran Mali, pembagian emas dalam jumlah besar saat perjalanan haji menyebabkan nilai emas turun drastis di Timur Tengah dan Afrika.

Niat baik membagikan kekayaan, baik dalam bentuk emas atau uang, tanpa perencanaan ekonomi yang tepat dapat menyebabkan kerusakan ekonomi besar-besaran.

Meningkatnya jumlah uang yang beredar di masyarakat secara signifikan akan menaikkan daya beli dan permintaan barang, namun tidak diikuti dengan peningkatan jumlah barang.

Ketika permintaan barang meningkat tajam tetapi ketersediaan barang terbatas, pedagang akan menaikkan harga, yang kemudian menyebabkan inflasi.

Fenomena kenaikan harga saat masyarakat mendapatkan Tunjangan Hari Raya (THR) adalah contoh kecil dari bagaimana tambahan uang di masyarakat dapat memicu inflasi.

Jika pemerintah mencetak uang secara berlebihan, kenaikan harga barang bisa tidak terbendung dan nilai mata uang akan semakin turun drastis.

Meskipun masyarakat memiliki lebih banyak uang secara nominal, inflasi menyebabkan daya beli turun karena harga barang dan jasa meningkat signifikan.

Kebijakan mencetak uang membutuhkan penghitungan matang, mempertimbangkan kebutuhan masyarakat dan pertumbuhan ekonomi untuk menjaga stabilitas nilai mata uang.

Inflasi akibat kebijakan yang tidak tepat bisa menghancurkan ekonomi dan menyebabkan penderitaan bagi seluruh lapisan masyarakat, bukan hanya menguntungkan mereka.

Studi kasus Hongaria dan Mansa Musa menunjukkan bahwa kebijakan ekonomi harus didasarkan pada prinsip-prinsip yang hati-hati, meskipun niat awalnya baik.