Please Give Me One Million Dollars
If Enough Money Was Printed To Give Every Person $1,000,000 Each, Would There Be Poor People?
The answer is: there would still be poor people because if there wouldn’t, then, every government would already have printed enough money to give every person a million dollars. It’s not the wish of any government to have citizens who are poor.
Devaluation of the Currency
But how would they do it. For extra money to be printed, somebody must lose by the equivalent of the money printed. When more dollars are printed, then the value of that currency loses by the extra amount of money printed. The first losers are those who already have cash money. If you had $100,000 in the bank that money will lose value and may become the equivalent of say $80,000. What actually changes is the quantity of goods you can buy with the same money. This means the rich people will lose when you devalue the currency and the poor people may gain if they are intelligent enough to take advantage of the situation. Unfortunately the poor people do not have the know-how and can only do so through the rich man. It’s therefore important to know that whenever there is a devaluation of the currency, it’s only the smartest, intelligent and rich people who benefits – because they are able to sell more goods at lower prices by making use of the cheap labor. If your employer was paying you a salary of $800 per month, he/she will continue to pay you the same salary even after the currency has been devalued and you and your labor union do not question it until it’s too late in the day.
Each Person $1 Million
Giving each person $1 million by printing extra dollars may sound very good news to the poor people. It’s actually a positive displacement in the sense that a man with $1 will now have $1,000,001 and the man with $1,000,000 will now have $2,000,000. But to print enough dollars to be able to give each person a million dollars will mean the person with $1,000,000 will lose a huge percentage of his one million dollars. The person without any money will lose nothing, at least for the time being.
1. 1 dollar divided by 1,000,000 dollars is equal to 0.000001
2. 1,000,001 dollars divided by 2000,000 is equal to 0.500001
Stealing Wealth from the Rich Man
By looking at the two ratios, you can see that they are not the same. This means that the poor man has become very rich relative to the rich man. In fact, he has stolen wealth from the rich man.
Assets and Goods
If the richman had his $1,000,000 in assets or goods, then he would not have lost that much. All he could have done is to raise the prices of his assets and goods immediately after devaluation. This explains why rich people do not keep all their money as cash in banks but prefer to buy assets such as land, buildings, stocks, etc,. The opposite is also true - when there is a valuation of the currency, the poor person loses while the rich man with cash gains.
Cash – Assets Ratio
Banks understands these things very well that they maintain a safe cash/assets ratio that is adjusted accordingly as the trend of markets dictates, otherwise, a decision by politicians to devalue the currency by giving the poor people free money will instantly put the banks out of business if they were holding a large cash/asset ratios. It’s very easy for a politician to say he/she is going to give people a stimulus check only to find him/herself giving that check to the banks themselves – because if they don’t get it, the entire banking system will go out of business and the politicians will be finished.
There Will Always Be Poor People
But there will always be poor people no matter what you do – we can have all citizens of one country being rich but citizens of another country will have to compensate by being poor. To avoid being one of the poor people, the trick is to get yourself unique know-how and to put that knowledge into action whenever necessary.
Shortage of Goods
If the poor people were to become rich, then they can not work again at the pay they were getting before they became rich. By that action, there will be shortage of goods and higher prices of goods will follow. Because of the high prices of goods, this will consume people’s money and finally poor people will be created again.
Poor People Are There To Stay
So, if enough money was printed to give each person $1 million, would there be poor people? Yes, there will still be poor people who will be the workers for the rich people.