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Originally Posted by DamageX
Whatever gave you the idea that supply and demand necessarily referred to money?
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Yours was only the nearest, clearest occasion of the phrase. I know what YOU meant.
It is implicit in Mark's scenario, however -- "...prints and issues..." -- that a finite number of bills has been *dispensed* to the over-18 population. Even if the conveyance of value were via electronic means -- as in: "Load Acct. #XXX@XXX, $1,000,000.00" -- we'd still be working with a finite amount, which could neither be borrowed against nor credit sought (in this hypothetical scheme) using collateral.
We must also assume that, in almost 100% of cases, the money would be spent almost immediately, as people took the money and went straight to *purchase* the life they feel they should have. At this point there are many holes in Mark's sketch (or simply details not provided) that would be necessary to provide a deeply considered response. For example: Are people permitted to work? Are forms of income that you create with your million dollars permitted? May one person who still has money *lend* to another who's run out? What about children, subsequent generations? How do we *vest* for the ones who will be turning 18 in the future? Is there a pre-fund? Is the list of things for which prices have been fixed the only things that may be bought and sold? People create products and services all the time to meet new needs.
But let's assume the simplest case, which is -- THIS IS A "RUN TO FINISH" EXPERIMENT ON CURRENT CONDITIONS.
Like I began, most people would blow through the money pretty quick on rapid-depreciation items. To put the line at 18, you'd have many households (US Census definition) with parents and 2-3 kids getting a mill. each. Upon such liberating windfall, the nests would empty, and -- further -- I think many marriages would end, for the high number of unhappy women in abusive-dependent situations. Basically, I think everybody would *go fer theirz". There would be a spike in demand for real estate (though I think fewer than 25% would buy homes or pay off mortgages), cars, luxury items and electronics. Pre-existing scarcity (finite supply, as in homes) and limits of manufacturing capacity, combined with frozen prices would rapidly create a near-zero supply situation, with long waiting periods. This effect would "trickle down" to even basic items in less than 12 months. Their money bound up in "things", people who no longer have any cash begin to trade "thing" for "thing". NEW items become very hard to come by, and are often "purchased" with several OLD items. Yes, a black market thrives. Prostitution is rampant, especially in exchange for health care services. From there, the entrepreneurial spirit (fired-up by a threat to basic survival) would produce an "alternative economy" with many eager participants. If successful, this alternative economy would overthrow existing power systems, a new currency would be created and we'd be pretty much be right were we started. Just change the names in the history books --
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