Financial

If our economy is stagnating because of bad debts, why not increase the supply of money to everyone? The thought behind this is that as inflation kicks up, consumers will see their incomes rise, and will be able to pay off their existing loans with devalued currency. The problem with this line of thought is that as we saw in the 70's, income and prices tend to rise unevenly. Fuel and food prices typically rise much faster than other prices and income. Devaluing our currency will only cause more pain.