It’s important to note that the mechanisms in today’s hyper-capitalist world keep people wealthy by specific ways, investments, asset allocations etc. High wages are the buy in, not the mode in which people get wealthy.
If you halved everyone worth over 20m and doubled everyone below 10m after a couple years most people would be back to where they started.
Is the transfer via cash? The wealthy elite have the majority of their wealth in investment like realty, businesses, and equities. Not cash. The investments would have the be liquidated to generate the money for the cash transfer. The amount of economic crisis this would create would be insane. Who would be the buyers?
If you took half of the wealth of everyone worth more than $20M…wait. Let’s say only people worth more than $100M. You took half their wealth and redistribute it to anyone making under $10M
If distributed proportionally, you would see most people’s wealth increase by more than 1000x.
Of course since this wealth is tied up in assets, You would crash the economy liquidating assets for the redistribution. If someone owns $500 million in real estate, you either sell half of it or have to decide who gets what property. Pretty messy.
Prices of basically everything would double overnight except for some higher priced items, and nobody would really be better off but a lot of people would be worse off, you don’t create wealth by just giving everyone more money, it’s a fundamental misunderstanding of economics.
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The world would be a better place with less crime
Very little. Twice nothing is nothing. Most people have near zero wealth.
So the 0.1% gets less wealthy, the 1% gets richer.
50% of the people happy, 50% pissed
Paid for? Via charity or by forcing them to? I actually think you’d cause an uproar.
What about the people with debt? -$1,000 doubled is -$2000.
The wealth gap would still be staggering. 60 percent of Americans have effectively no savings. The situation is even worse in impoverished countries.
It’s important to note that the mechanisms in today’s hyper-capitalist world keep people wealthy by specific ways, investments, asset allocations etc. High wages are the buy in, not the mode in which people get wealthy.
If you halved everyone worth over 20m and doubled everyone below 10m after a couple years most people would be back to where they started.
You haven’t thought this through very well.
Is the transfer via cash? The wealthy elite have the majority of their wealth in investment like realty, businesses, and equities. Not cash. The investments would have the be liquidated to generate the money for the cash transfer. The amount of economic crisis this would create would be insane. Who would be the buyers?
In about five years, at least half would be right back where they started — inflation adjusted.
In about five years, at least half would be right back where they started — inflation adjusted.
Stock markets would absolutely tank as people would rush to liquidate whatever asset they received.
Gas would be $36 a gallon and people with $10 million would feel poor.
They’ll always beat us
The people that were worth 10mil would be twice as rich as the ones who were worth 20mil.
more importantly what if everyone with wealth over $10m was taxed 1% on that wealth? yeah
I don’t think the math works out. There’s not enough over 20 million.
Billionaires would turn from super villains to super heros
Most of it would end up back in the same hands in just a few years.
You’d have a start at rebuilding a middle class of any kind
If you took half of the wealth of everyone worth more than $20M…wait. Let’s say only people worth more than $100M. You took half their wealth and redistribute it to anyone making under $10M
If distributed proportionally, you would see most people’s wealth increase by more than 1000x.
Of course since this wealth is tied up in assets, You would crash the economy liquidating assets for the redistribution. If someone owns $500 million in real estate, you either sell half of it or have to decide who gets what property. Pretty messy.
https://www.reddit.com/r/FluentInFinance/s/1TXMpHzgOr
Prices of basically everything would double overnight except for some higher priced items, and nobody would really be better off but a lot of people would be worse off, you don’t create wealth by just giving everyone more money, it’s a fundamental misunderstanding of economics.
Your scheme had people with 9 million getting 18 while people with 10 keeping 10, that’s weird math