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DialM4Speed | If John Q. Billionaire gave every resident of the USA 1 million dollars? |
What would happen to the economy? Would there be any negative effects?
Additional Details
Overall it would be a good thing right? |
 |
 
Dane
 |
Instant deflation as everyone went berserk and dumped a huge amount of currency into the economy driving the prices down on everything. |
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gethsemenerose
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A very rich man I once Knew (Dexter Yeager) once said. " I could give everyone in the world a million dollars and in two years time there would be just as many rich people and just as many poor people. Most of them would be the same as before." |
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Polo
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Of course there would be negative effects. Most people would give up their jobs. There would be no trains, no buses, no food in the shops .......... the list is endless. The economy would collapse overnight. |
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coldplayfl
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i would be happy :) |
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-
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Super inflation. It would be a disaster.
Girlwhoknows.....Right on the money. |
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jassy
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Well, all the retail stores would have a huge windfall, and shelves would be empty. Also people would probably quit their menial jobs , so who would ring up those sale , and who would pump the gas. And so on and so on . utter chaos. |
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girlwhoknowsitstrue
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There would be a horrible effect.
The money would be devalued - which means that a million dollars wouldn't buy you what $1,000 will buy you today.
Money has value because it is scarce - if no longer scarce, it loses it's value. |
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KansasDragon
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hmmm, Don't know any mega-trillionaire's who could do this.
But the effects would be more of a world wide effect. I'd suspect many of the new millionaire's would quickly head out spending dollars around the world.
But the truth of the matter, the very smartest ones would take their million dollars, start a business serving the other millionaires, soon multiplying his millions many times.
It is accurate, in a matter of a few years, many would be poor again, and the smart, wise, effective people would be immensely wealthy. |
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Radiosonde
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Our Economy or John Q's?
. |
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.
 |
He'd be a fool. He didn't make that money by sitting around playing XBox, he made it through becoming educated, focusing his passions into a useful skill, and hard work. What you're suggesting is not only immoral it is stupid.
By saving, investing or just plain old buying stuff, he is correctly stimulating the economy, and his efforts are the reason you have a job, a car, a refrigerator. If there weren't stinky rich people flying around in personal jets you wouldn't have a microwave oven in your kitchen.
Also by virtue of his skill with business, production or enterprise, he is much better qualified to spend that money than you, who can't save $10 to save your life. Giving millions to random strangers would be going against everything that made him who he is today.
The difference to the economy would be that your half-arsed efforts to pay off debt, buy a fancy car, give some to your family, buy a house, &c. would only help you personally and in the short term. It wouldn't build anything, wouldn't provide jobs, wouldn't make more money, you'd just spend it. |
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