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>> there is now a compelling reason to perform the impossible: spend all that damn money before the tax man gets it. > Isn't that a recipe for hyperinflation?

>> there is now a compelling reason to perform the impossible: spend all that damn money before the tax man gets it. > Isn't that a recipe for hyperinflation? But of prices on... what? Yaacts? It's not like people are going to start buying 1000x more bread loaves and corollas. On the contrary, it'd probably deflate prices of housing in major "investment" markets, as families off-load second/third/fourth houses. And for the luxury goods, it might even drive down prices of certain goods. More demand => economies of scale => more efficient production => lower prices => suddenly affordable to a larger market => more demand => ... But the original premise is kinda depressing. There is an alternative to blowing all your money on hedonism. You can substantially ramp up your donations, for example. I think you'd see an explosion of small churches/local colleges/community centers/etc. with $100M+ endowments.

josephcsible 6y ago
> But of prices on... what? Yaacts? It's not like people are going to start buying 1000x more bread loaves and corollas. And then what will the yacht company do with all of the money? > it might even drive down prices of certain goods. More demand => economies of scale => lower prices => more demand => ... That's not consistent with economic theory. Economies of scale don't work "forever". At some point, the per-unit price will start to rise with quantity again.
- throwawaygh 6y ago
  > And then what will the yacht company do with all of the money? Employ people. Reinvest. Raise wages. Expand to new markets. Throw better Christmas parties. Buy the CEO another yacht. You know, run their business. > That's not consistent with economic theory. Economies of scale don't work "forever". At some point, the per-unit price will start to rise with quantity again. You mean we won't get $10 yacht?! ;-) Anyways, that part of my original pose was supposed to be tounge-in-cheek. The point is, I don't think bidding up the prices of real estate in a few super-upper-class retirement snowbird communities is the end of the world. Yes, inflation will happen. But only in certain asset classes that I don't care much about.
austincheney 6y ago
I wonder what would happen with those luxury goods when the wealthy party dies and nobody else can afford the maintenance costs on these things.

josephcsible 6y ago

> But of prices on... what? Yaacts? It's not like people are going to start buying 1000x more bread loaves and corollas. And then what will the yacht company do with all of the money? > it might even drive down prices of certain goods. More demand => economies of scale => lower prices => more demand => ... That's not consistent with economic theory. Economies of scale don't work "forever". At some point, the per-unit price will start to rise with quantity again.

throwawaygh 6y ago
> And then what will the yacht company do with all of the money? Employ people. Reinvest. Raise wages. Expand to new markets. Throw better Christmas parties. Buy the CEO another yacht. You know, run their business. > That's not consistent with economic theory. Economies of scale don't work "forever". At some point, the per-unit price will start to rise with quantity again. You mean we won't get $10 yacht?! ;-) Anyways, that part of my original pose was supposed to be tounge-in-cheek. The point is, I don't think bidding up the prices of real estate in a few super-upper-class retirement snowbird communities is the end of the world. Yes, inflation will happen. But only in certain asset classes that I don't care much about.

austincheney 6y ago

I wonder what would happen with those luxury goods when the wealthy party dies and nobody else can afford the maintenance costs on these things.