Don't you think we could all be millionairs if...?

Question

One million people made a pact to give each other one-dollar each, so all of them would achieve the status of a becoming a millionaire. Like for example... every one give me a dollar first (hypothetically speaking), once I achieve the goal, then the second person, every one sends a dollar, then the third person, every one sends a dollar... etc, etc., a dollar isn't much for someone to donate at a time. What do you think? Answers is so popular, I literally get 20 responses in a second, could you imagine if this really worked? I’d like to hear peoples feedback, negative and positive.

True, that is true if we all gave 1 million people a dollar, we would end up with the same we gave away. However, add up all of your money since you've been making money, I'm sure you are well past a million dollars you given away, that you aren't getting back. Giving a dollar at a time, is easy. This wouldn't happen simultaneously. And you could expect 1 million dollars in a lump sum.

I'm talking about people helping other people achieve something, nothing more, nothing less. No ripping off like the pyramid schemes, where if you don’t sign up people you lose money, this would be a pact of people trying this experiment. Nothing more.

Answer 1

I'm not sure whether to dismiss it or be stumped! It sounds oddly feasible, like all of China jumping at the same time as America to counter a seismic effect, which is a fallacy.

Answer 2

The others are right, you can not create new money by doing this. All you are doing is shifting it around. Since your scheme would not be fair if people stopped giving once they got their $1 million, mathematically and economically it is no different than simply saving your own money for yourself.

Further, giving a dollar is only easy depending on how often you do it. Would you be willing to give $10 a day, every day? A lot of people wouldn't want to spend that much, especially if they're not rich to begin with. But even at $10 a day, it would take 137 years on average to amass $1 million through your scheme.

The comment from a previous answerer about being a Democrat was not entirely off-target. Among politicians (the ones who spend our money), a good majority of Republicans are economically ignorant, but the great majority of Dem politicians are. So here's a lesson in economics for you, in case you ever decide to run for office.

Basically, all of economics can be divided into 2 categories, wealth creation and wealth redistribution. Your scheme is wealth redistribution, which is simply taking money from some people and giving it to others. The net effect is zero, or actually negative if you include the losses to bureaucracy that are required to redistribute the money. (Someone has to pay all those gov't workers!)

Wealth creation works like the following: let's say you have $2 that you want to spend buying a loaf of bread from a baker. The baker has all these loaves of bread, but he values your $2 more than a loaf of bread. You value a loaf of bread more than your $2. So you two trade, giving him your $2 and getting a loaf of bread in return. Now what's just happened? Simply put, he sold you a loaf of bread. But the important thing is that you BOTH got something you valued more than if you hadn't exchanged your commodities. The act of trading money (which is just a store of value) for bread resulted in increased value for both of you. You may not normally think of bread or other things you buy as having value, but they do have more value to you than the price you paid for them, otherwise you wouldn't have bought them. So you come out ahead and the baker comes out ahead.

That is definitely a simplification of how markets work, but the key thing to remember is that wealth (value) is increased for every trade or sale that's made. Similarly, when you work, you get wealthier by exchanging your labor & talents for money, and your employer gets wealthier by trading his money for your labor & talents. Thus wealth is created.

I'd be willing to wager (because I know I'd win :-) that at $10 a day, you'd become a millionaire quicker on average by investing the money in the stock market rather than through your scheme. Compound interest is a _wonderful_ thing....

Answer 3

that one no work at all..if 1 million people made a pact to donate to each other 1 dollar each..that means the person who got the million dollars will give it all away to the 999.999 people..so therefor he will only have onedollar left..and you will end upwith the same amount of money you started with..

Answer 4

Those are pyramid schemes. Read up on them. There are no millionaires there other than a few at the beginning which is why it's illegal.

Answer 5

You get 1 million and give away 999,999 in this plan.

Answer 6

You MUST be a Democrat with logic like this..........This is a "pyramid scheme" and is illegal.