if everybody gave everybody in the united states a dollar, what would happen?

Question

im just curious. i wounder how it would play out. give me some good answers, best gets 10 pts.

Answer 1

The IRS would get involved, taxing each transaction. People in a zero marginal tax bracket would have given and received a dollar, leaving them no worse off (though see below for a qualifier); people in high marginal tax brackets would be taxed on the gift they receive, leaving them worse off.

So, now that the government has greater tax receipts, what happens? It would probably reduce our budget deficit a little, which would benefit future taxpayers. In this sense, your proposal really amounts to a transfer of dollars forward in time.

If Congress knew of this plan, however, they would probably earmark the funds for special projects. The problem with this is that they would end up earmarking 10 times the actual amount available, leading to an increase in the budget deficit.

Answer 2

If we all paid simultaneously with cash or check it would be a wash. Nothing would have happened.

If we paid on credit and people were able to borrow money from banks with the I.O.U.s we would have an increase in the money supply. An increase in the money supply would affect the value of the dollar, create inflation, stimulate industrial growth, and juice up the market. When the debt was repaid the money supply would shrink and the economic effects would be reversed.

The problem with all of this is that the value of a dollar is constantly changing. Winners and losers would be determined by when the dollars were transferred. The faith of people (here and abroad) in our currency is never static.

Answer 3

if everybody gave everybody a dollar, then everybody would keep giving and recieving a dollar, since if I turn around and give you a dollar, then someone else is going to give me one. I mean I guess the money would keep circulating, or once you gave your dollar and recieved your dollar does it stop?

Answer 4

well if everybody gave everybody a dollar everyone would end up with just as much money as they started with, the real question is... is everybody gave -someone- a dollar what would happen.

Answer 5

United states stays the same economically and everyone' s money is still the same as you have to give and take one dollar, thus nothing happens

Answer 6

well at the end of the 300million transaction ill have taken in a total of 300million dollars and spend 300million dollars. i wonder if i can get a tax refund of a few million dollars if it was a business entity doing so because they get to spend first then taxed at whatevers left which is 0.

Answer 7

Sounds like a good way to pass on flu bugs, sneeze droplets, TB germs, microscopic specks of fecal matter, and God knows how many other greeblies.

Answer 8

this is impossible..but if they did..nothing would happen..

i have friends and relatives who when it was there turn to give the dollar would stiff them and have made a dollar..this is why chain letters always fail...Ponzo Theory?

Answer 9

Somebody would figure out very quickly how to keep all those dollars for themselves.

Answer 10

Everybody would have done absolutely nothing, except maybe contracted TB from that guy and his deadly money.