Why can't government print more money to pay off debt and make everyone rich?

Did you ever think that if the Indian government has its own currency printing machines then why don't they print enough currency to make everyone rich .  

To understand this , we first have to understand this formula,

                     SUM OF VALUES OF ALL GOODS AND SERVICES PRODUCED

                                                                   = 

                                  SUM OF ALL CURRENCY PRESENT  

It means that all the goods and services produced in a country are equal to the total currency present in that country.

Now. let's understand this with the help of an example. Suppose there is a country in which only 5 peoples live and each people has 100 rupees . Further suppose that only 50 kg rice is produced in that country. So, the cost of 50 kg of rice becomes 100*5=500. Again suppose that the country has its own currency printing machine and government of the country prints a lot of currency notes and now every person have 1000 rupees .  Currency notes are increased in that country but the production of rice remains the same that is 50 kg. Now, these 5 peoples  have 1000*5=5000 rupees but the rice remains same that is 50 kg. Then ,the cost of that 50 kg of rice becomes 5000 rupees. It means that with increase in currency the prices also get increased . This is called INFLATION.

We can also understand this thing by taking another example. Suppose a large amount of currency is printed in our country and every person have millions of rupees. Now,suppose you go to the market to buy a toothpaste which was selling before at a price of 50 rupees. But why would the shopkeeper now sell the toothpaste at a price of 50 rupees.  Suppose he was saving 5 rupees on each toothpaste before a large amount of currency was printed. He also has received millions of rupees form the government . Then why would he open the shop just to make a profit of 5 rupees. So, he will increase the price of the toothpaste by multiple times. In this way, from the raw material to the finish product the cost of everything will increase. 

Governments of all the countries knows this fact. But in history this mistake has been down by two countries.

HYPERINFLATION IN GERMANY  

During the first world war, German economy was in great depression . To fulfill the needs during the war Germany borrowed a huge amount of money from many countries. But they lost the war and Germany became unable to pay the money back. Then the German government decided to print a large amount of money to pay back their debits. The government  did the same thing. As a result, Germany faced currency devaluation and  the prices of everything increased. 

        

 HYPERINFLATION OF ZIMBABWE    

A few years ago Zimbabwe repeated the mistake of Germany. The government printed a huge amount of money. As a result, Zimbabwe faced a massive currency devaluation. Price of a loaf of bread jumps to 35 million dollars.  Zimbabwe's central bank allowed its citizens to exchange the country's almost worthless currency for US dollars. Its 100-trillion-dollar note is worth just 40 U.S. cents. 

   
This the reason why government do not prints a huge amount of money. In a country , how much money should be printed is decide by the CENTRAL BANK of that country according to the  GDP, GROWTH RATE and many other factors. In India, RBI decides when and how much amount of currency should be printed .