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Old 02-01-2019, 08:10 PM
 
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Quote:
Originally Posted by CaliRestoration View Post
We already have a real life example of this to look to.

Giving poor people "free money" doesn't do much, and they usually remain poor.

It does do one thing it gives the DEMS lots of loyal voters who want free money. What is scary is that if this was actually proposed a lump sum cash payment would be much more popular than just entitlements so would probably happen. That is what Cuba did, they did wipe out prosperity and wealth and greedy corporations.

Last edited by Oklazona Bound; 02-01-2019 at 08:23 PM..
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Old 02-01-2019, 08:20 PM
 
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Quote:
Originally Posted by BoBromhal View Post
please explain.

4k/capita is 1.3T.

GDP is 20T

maybe there's not more than 1.3T cold hard cash. but 16 US corps have 1T all by themselves
Corporate America has about half of all cash on hand. $1.8T of the $3.6T that is out there.

So what is the plan take away all their cash assets that will make it impossible for the corporations to function? It will be one big party until the cash runs out.

https://tradingeconomics.com/united-...oney-supply-m1

M1 money is all funds available for spending in this country. That is the $3.6T.
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Old 02-01-2019, 08:30 PM
 
Location: Cebu, Philippines
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Quote:
Originally Posted by Thatsright19 View Post

Money, as you call it, is just a medium of exchange. Itís the real goods and services that maintain its value.

A side effect would be loss of confidence in the usd as the reserve currency.
No, it's the productive capacity to make goods and services that has value.. What has already been mad is worth only what a market is willing to pay for them.
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Old 02-01-2019, 08:32 PM
 
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Quote:
Originally Posted by LowonLuck View Post
I personally think that within a short time, the rich would be wealthy again and the poor would be poor again. It is not what you make, but how you manage the money you have. So unless they had a crash course, they would continue making the same choices that put them in the poor house previously.
Yes, this.

This is also the same reason why even most wealthy families only tend to stay that way for 3 generations. 1st generation makes it, 2nd doesn't mess it up too badly, 3rd generation blows it. Many cultures around the world have a saying that communicates this:

You may have heard the old proverb, “Shirtsleeves to shirtsleeves in three generations.” In Japan, the expression goes, “Rice paddies to rice paddies in three generations.” The Scottish say “The father buys, the son builds, the grandchild sells, and his son begs.” In China, “Wealth never survives three generations.”


https://familylinevideo.com/three-ge...legacy-videos/

Last edited by mysticaltyger; 02-01-2019 at 08:50 PM..
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Old 02-01-2019, 08:35 PM
 
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Originally Posted by cebuan View Post
The people who have it all now would get it back again, the same way they got it in the first place: Diligence, determination, guile, and outright theft. The people who want wealth and power the most will give up everything, even principles, to get it.

This basically happened in Russia., in our lifetime. In 1990, it suddenly became a free market economy, productive capacity in place, in which everyone had the same wealth. An instant Mafia-like system formed, and the wealth was distributed according to their rules, and then a few people had it all. Americans stood by and watched and said "Isn't this grand!"

Economics is not a difficult science at all.
This isn't quite accurate. The Communist system already had an elite. The Mafia-like system wasn't instantly formed. It was already there. Most of the communists just became crony-capitalists (not the same thing as true free market capitalism).
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Old 02-01-2019, 08:41 PM
 
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Quote:
Originally Posted by Oklazona Bound View Post
M1 by my math equates to about $27,000 per American. That money would be quickly squandered and the economy would collapse. I am not sure most of the rich would bounce back because the economy would be so hopeless very few would prosper, most likely those connected with the government.

Venezuela comes to mind.
What the rich typically do in a scenario like this is they leave for somewhere else with greener pastures. Venezuela is a perfect example. Most of the rich people from Venezuela live in South Florida now.
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Old 02-01-2019, 08:47 PM
 
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Originally Posted by loves2read View Post
The problem IMO is not people HONESTLY making more money than someone else, but people who cheat to make and keep money unfairly
I certainly agree with that. The flip side of this problem is the people who say that all or most people who have significant wealth came by it dishonestly. I don't think that's true, either.
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Old 02-01-2019, 09:50 PM
 
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Originally Posted by mysticaltyger View Post
What the rich typically do in a scenario like this is they leave for somewhere else with greener pastures. Venezuela is a perfect example. Most of the rich people from Venezuela live in South Florida now.

Of course if something like this was actually likely to become reality the wealthy people would have their money moved ahead of time. Its like high capital gains taxes here forced Apple and others to park their money out of the country instead of bringing it back. All this 90% tax stuff is silly because we have a big world out there and there will always be tax friendly havens and skilled tax attorneys to figure it out.
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Old 02-01-2019, 10:06 PM
 
Location: Minnesota
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Just look at how lottery winners all to frequently end up after a few years. I've read that 1/3 of lottery winners file for bankruptcy eventually. Imagine that....winning millions of dollars, and a few years later you're bankrupt. Not to mention how many end up estranged from friends and relatives who wonder why you won't give them lotsa cash, and drug and alcohol problems rear their ugly heads in there too.

It's why many smaller businesses don't last past three generations of family. The parents work hard and get the business going, their kids work hard in the business from young ages as the parents are building the business and learn a decent work ethic....but usually don't have to work as hard as the parents. The third generation comes along and life is good, the business is running well and they grow up with all the nice things life has to offer. The third generation takes over and take to much money out of the business in order to maintain and even grow their idyllic lifestyle, they don't work nearly as hard as their parents and grandparents, hey, they've never had to help grow a business....and eventually the business fails to prosper and is either sold, or declares bankruptcy. I've seen this happen many times with people I know personally, and far more that I know of.

In other words, if someone gives you money....boom, here's two, five, ten million dollars.... and you haven't actually earned the money, with your own smarts and/or sweat of your own brow over time, you'll have no idea how to manage and keep your wealth and you're likely to lose it all after a short time....back to those who work hard and know how to earn the money you're freely spending.

In short, you don't value that which you don't earn and struggle for. It's human nature, and it doesn't mean you're necessarily defective, just human.
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Old 02-01-2019, 10:33 PM
 
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Quote:
Originally Posted by jasper1372 View Post

In other words, if someone gives you money....boom, here's two, five, ten million dollars.... and you haven't actually earned the money, with your own smarts and/or sweat of your own brow over time, you'll have no idea how to manage and keep your wealth and you're likely to lose it all after a short time....back to those who work hard and know how to earn the money you're freely spending.

In short, you don't value that which you don't earn and struggle for. It's human nature, and it doesn't mean you're necessarily defective, just human.

There is a classic book called The Good Earth by Pearl S. Buck about a wealthy family in China that demonstrates this perfectly. Required reading when I was in school. The father builds up a successful business with his hard work and his kids just want to spend the money.
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