The government gives everyone who is a registered voter $1 million dollars. They enact a price-freeze with a maximum increase of inflation per annum for 5 years. What happens? I would suggest that a vast number of people would pour their money back into the economy (spending sprees, debt reduction etc) Manufacturing and importing industries would have a huge 2 years - creating more jobs. After two years the bubble would burst as the money runs out for most people and the employment situation would balance out because... A number of people would quit their jobs to enjoy their financial freedom. Wages and salary would go up to entice cashed up workers to fill low-skill and minimum wage jobs The balance of people spending money and businesses having to pay more in salary and wages would mean that nothing changes for those companies. By the end of 5 years the economy would return to normal. The wealth would have shifted from 100% of the registered voters to 5-10%. 90% of people would be back in the same situation they were previously. The money would have gone back into the govt coffers through taxation or overseas through multi-national corporations profit. Wed all have new cars. Wed all have new houses Wed all be debt free - and the credit industry would then boom as people struggle to continue with the lifestyle to which they had become accustomed - sinking into record levels of credit debt. The market for second hand luxury goods (boats, cars) would glut. Luxury item industries would see a decline after a boom. What else?
Posted on: Sat, 09 Aug 2014 23:34:54 +0000
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