The Benets of Creating or Printing Money:
Addressing Poverty, Homelessness, and
Unemployment
Ian Y.H. Chua
1, 2, 3, 4
Email: ianyhchua2024@gmail.com
30 December 2024
Introduction
The traditional view of money creation often associates it with ination, economic
instability, and scal irresponsibility. However, strategic and targeted monetary policies
can help alleviate systemic issues such as poverty, homelessness, and unemployment
without triggering runaway ination. This paper explores how governments can harness
the power of money creation to address these critical societal issues and mitigate
ination through prudent policy measures.
Addressing Poverty Through Monetary Expansion
Creating money to fund social welfare programs can signicantly reduce poverty levels.
Direct cash transfers, universal basic income (UBI), and aordable housing initiatives are
examples of how newly created money can be used to enhance the standard of living for
marginalized communities. Research shows that targeted monetary interventions have a
multiplier eect, boosting local economies and increasing consumption without
triggering ination if implemented with safeguards [1]. For instance, direct cash transfers
in Brazil’s Bolsa Família program reduced poverty and inequality while maintaining scal
stability [2].
Reducing Homelessness
Homelessness can be tackled by allocating newly created money to build aordable
housing and provide rental assistance. The U.S. Department of Housing and Urban
Development (HUD) estimates that every dollar spent on housing assistance programs
yields economic benets of approximately $2.30 through increased job creation and
reduced healthcare and law enforcement costs [3]. By coupling monetary expansion with
regulatory policies such as rent controls, governments can ensure aordability while
stimulating the construction sector, thereby preventing inationary pressures.
Combating Unemployment
Monetary creation can also fund job creation programs, particularly in sectors like
renewable energy, infrastructure, and healthcare. For example, the Green New Deal
proposes signicant public investment to create millions of jobs while addressing
climate change [4]. Modern Monetary Theory (MMT) advocates for government-led
employment programs funded by newly created money, arguing that full employment
stabilizes the economy and reduces social costs associated with joblessness [5].
In addition to these sectors, governments can invest in the development of new towns
and housing projects. Singapore serves as a prime example, where the government’s
Housing and Development Board (HDB) has successfully designed and constructed
aordable public housing to accommodate its rapidly growing population. By channeling
funds into new urban developments, governments can create employment opportunities
across various industries, including urban planning, construction, and utilities. Such
projects not only provide jobs but also enhance national infrastructure and living
standards, making them an eective tool for combating unemployment.
The Problem With Relying Solely On Private Enterprises For Job Creation
Private companies and corporations, being prot-oriented, are primarily driven by the
need to maximize shareholder returns. This inherently limits their capacity to employ a
large workforce, as they prioritize eiciency and cost-cutting to maintain protability.
Moreover, during economic downturns, private enterprises are more likely to reduce their
workforce, exacerbating unemployment.
In contrast, the government can serve as the principal employer, ensuring that all able-
bodied individuals who are willing and able to work have access to meaningful
employment. This approach aligns with the concept of zero unemployment, where every
person capable of working has a job opportunity. By creating public employment
programs and funding projects in education, healthcare, and infrastructure, governments
can directly address gaps left by the private sector. Additionally, such initiatives can
foster economic stability by reducing reliance on market-driven employment, which is
often subject to cyclical uctuations.
Controlling Ination
Contrary to the conventional wisdom that printing money inevitably leads to ination,
historical evidence shows that ination can be managed through careful policy design.
Key strategies include:
1. Targeted Spending: Directing newly created money toward sectors with
underutilized resources prevents demand-pull ination. For example, during
World War II, the U.S. government managed ination by rationing goods and
controlling wages [6].
2. Progressive Taxation: Implementing progressive tax policies can absorb excess
liquidity from the economy, thereby stabilizing prices [7].
3. Regulatory Oversight: Enforcing strict price controls and anti-monopoly
regulations can prevent cost-push ination, ensuring that corporations do not
exploit increased money supply to raise prices arbitrarily [8].
4. International Coordination: Collaborating with other nations to stabilize
exchange rates and manage trade balances can mitigate imported ination,
particularly in open economies [9].
Lessons From History
Historical examples underscore the potential of monetary expansion for social good.
During the New Deal era, large-scale public works programs funded by government
spending lifted the U.S. out of the Great Depression without causing hyperination [10].
Similarly, Japan’s post-war reconstruction relied heavily on monetary creation, which
spurred rapid economic growth while maintaining low ination through strict regulatory
controls [11].
Policy Recommendations
To leverage money creation for social benets, governments should:
1. Establish independent oversight bodies to monitor ination and adjust policies
as needed.
2. Develop comprehensive programs targeting specic societal issues such as
housing, employment, and healthcare.
3. Foster public-private partnerships to ensure eicient use of funds and minimize
waste.
4. Enhance nancial literacy among policymakers to dispel misconceptions about
money creation and its economic impacts.
Conclusion
Creating money to fund social programs represents a paradigm shift in addressing
poverty, homelessness, and unemployment. With appropriate safeguards, governments
can harness this powerful tool to foster economic equity and stability. The fear of ination
should not deter such initiatives, as history demonstrates that prudent policies can
mitigate inationary risks. By prioritizing human well-being over outdated economic
dogmas, societies can achieve sustainable and inclusive growth.
Acknowledgments
This paper was developed with the assistance of ChatGPT 4.0, which provided insights and renements in the
articulation of philosophical and scientic concepts.
1
Founder/CEO, ACE-Learning Systems Pte Ltd.
2
M.Eng. Candidate, Texas Tech University, Lubbock, TX.
3
M.S. (Anatomical Sciences Education) Candidate, University of Florida College of Medicine, Gainesville, FL.
4
M.S. (Medical Physiology) Candidate, Case Western Reserve University School of Medicine, Cleveland, OH.
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