If everyone had a million dollars, would we all be rich, or would everything just cost way more...?

...so that we were all poor again?

4 Answers

Relevance
  • Anonymous
    1 decade ago
    Favourite answer

    Bill, I agree with the first 2 or 3 answers.

    Remember in school we heard about the gold

    rush in '49 and immediatly goods were

    inflated to the nth degree. Such as eggs were

    a dollar each. Would have been nice to have

    a chicken farm in California at that time. Of

    course I would have to share my chickens

    with old reynard.

  • Anonymous
    1 decade ago

    You need to be more precise.

    If someone printed up a million dollars for everyone, then all the extra spending but there is no new goods, so prices rise.

    But, if your the first one to spend your money, you could probably spend a lot of it before people started raising prices, depending on how firms expect prices to rise. If everyone knew it all at once, then firms would likey raise prices pretty fast, since they know that their costs will rise.

    But if no one printed up the money - if the money came from overseas or represented more goods, then we would be fine.

  • 1 decade ago

    Hi Bill W!

    Everything would just cost more.

    It's happened many, many times in history that governments failed to collect enough taxes and instead just printed lots of money to cover their expenses. It's known as hyper-inflation.

    It's going on right now in Zimbabwe, where the Communist-led government endlessly keeps printing money. In 1983, one US dollar was worth about 1 Zimbabwean dollar. Today, however, 1 US dollar is worth almost a million Zimbabwean dollars. Everyone in Zimbabwe who has the equivalent of a US dollar is a millionaire today, in Zimbabwean dollars.

    Does this mean everybody in Zimbabwe today is rich? Just listen to your TV news. What do you think?

  • 1 decade ago

    If everyone had a million dollars, within one month the amount of people 2 million dollars in debt would increase over 1000%

Still have questions? Get answers by asking now.