Imagine

On msn dot com this morning, one of their stories was a list of each state's wealthiest person. They were listed in order of wealth, from least to most. Of course, the wealthiest was Bill Gates (WA). His wealth was listed as $76B. Economics wasn't my best subject, but I seemed to understand the concept of stimulating the economy with an infusion of funds. I find it so annoying that while some can't rub two pennies together, others have money that just sits there. It can't be spent in this lifetime, or many lifetimes. I've often said the country's entire economy is hidden in the Caymans. It's not even a fairness issue. I don't think everyone needs to be wealthy. I think my concern has more to do with the fact that life is finite. And life is even shorter if it's spent in a constant state of worry. Or sadness.

So what would happen if we took all but $1B from Mr. Gates and divided it evenly amongst every man, woman, and child in the country? My quick math came up with somewhere between $2,000 and $2,500. And then we add a rule that the money can't be used to pay old debt. It must be used solely for new consumption. And rule #2, the funds won't be taxed. For a single person family, it's not enough for major purchases, like a car or house (unless it's used for a downpayment, I guess). But for larger families, it could allow for something really nice, like a trip. Whatever!

The question really is----what does it do to the economy? And, I'm sure no one would mind if you came up with ideas for how you would spend your allotment. Anyone wanna play? Reality is such a bummer these days.

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WaveyDavey's picture

there was something called a maximum wage...let's say $50M per household member. This would be roughly the equivalent of making $1M per year during a person's career. Once a person has earned that much wealth it would be illegal for them to earn anymore.

Hopefully, our society will evolve to the point that we not only see it as illegal, but also immoral to accumulate such a vulgar amount of wealth.

I would consider rethinking

we add a rule that the money can't be used to pay old debt.

One of the crippling things in our economy is the amount of debt people carry. If people were given an opportunity to pay down their debt quickly they would have much more money in the long run which would "trickle up" and stimulate the economy. (It seems we've been trickling the wrong way for decades and now there's a big mess on the house floor.)

With an extra $2.5K in my pocket I'm certain I would use it to support the arts in some respect.

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The people, united, will never be defeated.

stimulates the economy. Paying off debt either doesn't, or doesn't stimulate as much. It would cause a delayed bump, when, in subsequent months, a person would have more disposable income.

I like your idea about a maximum income. Or maybe a maximum amount one can save.

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WaveyDavey's picture

But a one time dispersal of $2500 would only be a temporary stimulus.

Don't forget that GW Bush sent out tax rebate checks for $300/$600 and the economy subsequently went up, but only for a short time before it resumed its old dismal self.

If credit debt is paid down then the debtor will have extra expendable money that would have otherwise gone to fees and interest and this extra money would be coming in every month.

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The people, united, will never be defeated.

riverlover's picture

Being unemployed then had mostly downsides.

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Thaumlord-Exelbirth's picture

for a guaranteed income. If a short term check from the government stimulates the economy for a short period, would it not be a rational thought to consider that multiple checks spread throughout the year would spread out economic stimulation as well?

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sojourns's picture

2500 x (roughly) 320,000,000 people amounts to 800,000,000,000. Just about what it costs to bail out the banks.

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"I can't understand why people are frightened of new ideas. I'm frightened of the old ones."
John Cage

that really isn't the point of this exercise. The stimulus package of 2009 was about $800B as well. Problem: Susan Collins changed 40% of it to tax treatment, as opposed to just out and out spending. Also, much of the funds given to the banks was repaid, so that's sort of a non-issue for this game.

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Thaumlord-Exelbirth's picture

Yours was off. $1 Billion split into $2500 amounts comes out to 400,000. That's a far cry from the approximately 320,000,000 US citizens. If we split the $1 Billion among every citizen, that's only $3.12 per person.

Even going with the low estimate you put forth of $2000/person, that's $640 Billion. That's more than was spent on the military in 2015.

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But, like I said, the amount isn't the point. I just get very frustrated that people are allowed (yes, allowed, as Congress created the tax structure) to hoard our economy. I wanted people to imagine what it would be like to not have so many people just hanging on by their fingernails while huge sums of money are hidden from tax liability, or just isn't being used. It hasn't always been this way, and I remember when it wasn't.

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Thaumlord-Exelbirth's picture

I don't remember when it wasn't this way. And I'm sure that's the case for a lot of millennials. Kinda makes me wonder how many people of the older generation are aware of that perspective.

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elenacarlena's picture

in the same townhouse for 8 years now and usually get the 7-year itch. My itch is more than a year old!

If I couldn't magically get a down payment and a bank loan so I could finally have my own house, then I would contact Habitat for Humanity and see if I can qualify to get my own place with their help. I'd be happy to help put a house together and see how it is all built. I think it would be fascinating.

If not that, I might try to downsize or move out of the city to where rents are cheaper. I'd have to make sure to have good availability of transportation, though, and Internet connections; I don't have a car and do work exclusively online.

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riverlover's picture

Two grand might buy you a beater (=old car) and yes, maybe a month's rent plus deposit (cats, you know) elsewhere. Where? Tipton, Indiana? No big city.

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elenacarlena's picture

do now, I'd rather spend the money on hiring professional movers so I don't have to! I'd have to have someone move my big furniture anyway. Not having a car forces me not to end up lazy and sedentary.

How about Berea, KY? Average one-bedroom rent $514, lots of artists, and free college!

I tried to add a pretty photo of Berea, but the connection seems to be spotty. T storms.

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riverlover's picture

but I suspect that prices are through the roof! Sean King grew up nearby. Regards!

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elenacarlena's picture

I found this cool "Affordable housing online," you can search by city or county, see what they have for housing assistance and find average fair market rates:

http://affordablehousingonline.com/housing-search/Kentucky/

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elenacarlena's picture

Berea College in Spring A9279_2_full[1]_0.jpg
Berea College in the Spring

Ta da!

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riverlover's picture

I was there 3-4 times, specific memories fade. Last was for an outdoor concert. Decades (!) ago.

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elenacarlena's picture

online, says it's about 50% students.

I haven't been back in a while either (although less than decades!). That'd be an awesome place for a meet-up!

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riverlover's picture

Best KY viewing in Land Between the Lakes, which I have never visited. I can probably interest my Louisville sister as well. Tentative meetup!

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He's one of the biggest supporters of that ignorance-generator they call Common Core. He wants also to put computers (all running Micro$oft Window$, natch!) into our schools, even those where the kids don't have them at home.

Let's not forget to two separate bequests of $4 billion each to Mumbai and Beijing to build "technology centers" to train software experts who know all of the Window$ back-doors to make spam and other malware that much more widespread and effective.

Now how can you argue against THAT?

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Vowing To Oppose Everything Trump Attempts.

If he wants to grow that and throw money at other countries, his choice. The plan is to grow our economy. If he's more interested in growing the economies of India and China, that may be the reason why so many here are living in poverty. What they don't hoard, they throw at other countries. Bastards!

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Why was he just listed as being worth $78 billion?

Bill Gates
Real Time Net Worth As of 8/5/16
$78.5 Billion
Cofounder, Bill & Melinda Gates Foundation

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Vowing To Oppose Everything Trump Attempts.