What would happen to the economy if everyone was a millionaire?

Question

I've had this thought in my mind for a while now.
I would like to hear your opinions.

--What would happen to the economy if everyone was a millionaire?
-Would it be good or bad for the economy?

Answer 1

Well it depends how everyone is a millionarie. If everyone just magically had a lot of money that they received from somewher, I would guess that that would cause an inflation spiral as consumer demand would skyrocket with more money chasing the same amount of goods.

But if it were because we all became educated and skilled and wer all earning that maount, it would be good. We would produce more and consume more. The reason why everyone would be able to make that much would be because everyone is that productive.

Think about it goign back in history. Compared to a couple thousand years ago, we are all millionares in relative standard of living. The average middle class American in many ways lives a higher standard of living then nobility in the ancient world, yet it doesnt cause inflation or anything like that now, because we can live a higher standard of living because our skills, technology, and capital stock can produce that much without causing a shortage.

Im not sure if thats making much sense, but if it did happen that way, it would be good. If we all were milllionares because someone or soemthing just gave us all that money, it would be bad.

Answer 2

Do you mean if the government just printed up a ton of money and passed it out? This would be bad. The prices of everything would rise rapidly, but in an unpredictable way. People would have to spend so much time and effort to adjust to the rapidly rising prices (or just to guess what might happen next) that nearly everyone would be worse off.

Answer 3

The price of a Big Mac would be in the hundreds of dollars and the cost of a big house in the billions.

With inflation, such a thing is always possible. My parents paid $20,000 for a house in the early 1950s, and now the lots are selling for close to a million and they tear the houses down and build new ones.

Answer 4

I would say that it would be good for the government since the millionaires pay over 90 percent of the taxes anyway. Think of the social engineering they could do. Hilary would undoubtedly get her dream of socialist universal health care.

Answer 5

In Wiemar Germany, in the early 1920's everybody did became Billion-airs. It was a disaster because prices skyrocketed on everything, because the money had lost it's value.

You see money is only valuable when it is backed by something of REAL value.
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Answer 6

The rich would still become richer, while the average person would spend away their wealth.

Answer 7

i would be rich.