+67

Most people will probably think everyone having/earning 1 billion dollars will be good but it is not cause the prices of everything will rise up if everyone had 1 billion dollars, amirite?

100%Yeah You Are0%No Way
404ChompyNotFounds avatar Money & Economics
Share
0 17
The voters have decided that 404ChompyNotFound is right! Vote on the post to say if you agree or disagree.

Why would prices rise if everyone had a billion dollars?

@KilljoyX Why would prices rise if everyone had a billion dollars?

Because what gives money it's value is it's scarcity.

If everyone had a billion dollars, each individual dollar would be worth less.

This is basic economics.

@KilljoyX Why would prices rise if everyone had a billion dollars?

It's supply and demand. If you have a fixed number of widgets which the market is willing to pay $10 a piece for and then suddenly everyone is a billionaire but they still want one of those finite number of widgets, the competitive pricing to secure one is going to skyrocket because of the spike in market cash available.

It's why printing money indiscriminately, like in Venezuela for example, causes it to be worth less than the paper it's printed on, ie hyper-inflation.

@Milkzey It's supply and demand. If you have a fixed number of widgets which the market is willing to pay $10 a piece for...

This is the closest to a reasonable answer, thank you for that. My counter to a few people have been that right now most Americans don't have 1000$ for an emergency payment, yet prices are still rising. So distribution of money is not the reason there is inflation.

@KilljoyX Why would prices rise if everyone had a billion dollars?

I'm too lazy to explain, so just google financial inflation or let someone else explain

@Cheytuflya I'm too lazy to explain, so just google financial inflation or let someone else explain

You're too stupid to explain. Right now most Americans don't have 1000$ if an emergency happpened but prices are rising so it doesn't have anything to do with how much people have.

88080808088s avatar 88080808088 Yeah You Are +2Reply
@88080808088 You're too stupid to explain. Right now most Americans don't have 1000$ if an emergency happpened but prices are...

You don't understand simple economics and you're simultaneously calling someone stupid.

Bold move Cotton.

@Missannthropic You don't understand simple economics and you're simultaneously calling someone stupid. Bold move Cotton.

I understand economics enough to know that the original statement is wrong. Possession does not equal production. If all bitcoins were evenly distributed among society, would the price of things relative to sats increase, decrease, or stay the same?

This also applies to raising minimum wage. If the increase is absolute then it is defacto inflation.

I don't think that, I think that everyone should have enough money to be able to have decent housing and a quality of life if they work full time

88080808088s avatar 88080808088 Yeah You Are +1Reply

I don't think most people will think that will be good. I think most people will think it is a bad idea.

Nobody thinks this dude, we all know what inflation is

🤦🏻‍♂️

Shiny244s avatar Shiny244 Yeah You Are 0Reply

Austin Powers scene with the 1 MILLION DOLLARS ransom sums it up.

Please   login   or signup   to leave a comment.