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How will printing money lead to redistributing wealth? The wealthy will still have their properties, their stocks, their personal connections, their education,
by jhncls 5y ago
How will printing money lead to redistributing wealth? The wealthy will still have their properties, their stocks, their personal connections, their education, ... . When the water level rises, all boats will rise together.
- Boxxed 5y agoBecause the proportions change. OP used exadollars in his/her example to show that giving money equally to everyone evens things out.
- babesh 5y agoGovernments don’t generally do it that way. Usually they just seize assets. That is because if you print exadollars then either the assets rise in value in proportion or beyond a certain point, implode, making the country as a whole poorer. That is because companies can no longer make money. Suppliers demand more anticipating further inflation. You then need to pass it on but may not be able to pass it on fast enough. Cycle builds upon itself. Pretty soon, your currency is completely devalued and there is a robust underground economy. You run into shortages for essentials and have to introduce price controls. The poor get poorer. The rich get poorer. Good job. Lebanon. Venezuela. https://www.linkedin.com/pulse/money-credit-debt-ray-dalio https://www.linkedin.com/pulse/money-credit-debt-ray-dalio