Rough numbers of global money, broken system, why most people are broke, the 1%, etc.

[Shogon]

This thread is full of random money thoughts. Stop reading. There is no goal or objective or place I'm going with this, specifically. It's random gibberish. You're welcome.

Anyways...

First of all, I want to say that I in no way shape or form advocate for people hoarding money to such an extreme degree, and you'd have to be a sick bastard to keep multiples of billions, but...

For years I've been hearing a decent number of people clamoring for systemic change as it pertains to wealth distribution, the 1%, etc... and I've figured a few things out. I've figured out why most people are broke. I've figured out that if you took the wealthiest people's money and redistributed it evenly, it wouldn't do anything.

Point 1) The extreme vast majority of people have absolutely no idea what makes sound money. They also have no concept of saving money. Everything is consumption based, particularly in the United States. The fact that our collective mindset is consumption based means that regardless of how much money we have, most of us are going to squander it completely. This is by far the biggest reason that most people live pay check to pay check and the biggest problem our society faces as it pertains to money and wealth. Because of their lack of understanding of money, their view towards money, and believing that they are entitled to a certain lifestyle.

Point 2) There is $31 trillion in the world in physical currency. If you include the currency that exists in the banks on computers, that number jumps to $84 trillion. There are 7.5 billion people in the world. If you took $84 trillion and evenly divided it among 7.5 billion, that comes out to... $11,200 per person in the entire world. Barely enough to buy a new car.

Let's say you currently have $0 and that redistribution takes you up to $11,200... well, that is absolutely nothing. A lot of you may read that and think it's ridiculous, but big picture? Most of you reading this absolutely piss that much away on an annual basis. Keep in mind, even if that 11k helps you out short term, at the end of the day, you still have bullet point number one to deal with. Statistically speaking, you have a consumption based mindset. That money will be gone within 6 months tops, and that's me being generous. You're going to piss that money away and it's going to be gone and you'll be in the exact same spot you were with nothing to show for it except for a few extra lbs around the waist and a shiny new TV or two that doesn't provide any quality of life upgrade.

Some figures say that global wealth exceeds 300 trillion. Ok. That's $40,000 per person with everyone starting from a "zero point" of $40k. Getting closer to something substantial for everyone, right? Except now you really have to start to factor in that the demand for everything goes up, prices on everything goes up, because everyone has more money. Additionally, you still have the problem of point one. Consumption based mindsets. I'd wager that if you dropped 40 grand in everyone's lap and we lived in a fantasy land where all prices for all goods and services remained the exact same, most people would blow that money within a year. Easily. If not within a month. Two years absolute tops.








In closing, most people are broke because they're irresponsible and have fundamentally flawed mindsets and views towards money, saving, and wealth. You could redistribute all global wealth and while it would definitely change some lives, everything is going to trend right back to where it was. I mean, I'd be shocked if the system wasn't in the exact same spot that it was before in less than 5 to 10 years time.

Change my mind.

[warriorfan]

I wonder what the figures would look like if you did just the US instead of the whole world.

[egokiller]

Math adds up. Solid post. :applause:

[Shogon]

I wonder what the figures would look like if you did just the US instead of the whole world.

Well, first of all, if you earn the equivalent of 30k USD a year or more, you are in the 1% globally. So there's that to consume and let it sink in. There are a lot of really, really, really dirt poor people around the world... so many so that it absolutely amazes me how much US citizens think they're so bad off. But I digress.

Let's look at the US.

The United States citizens held $98 trillion in 2018. That is essentially one third of the world's wealth. That's absolutely insane. The rest of the world should be coming after our asses long before we go after our own 1%.

Anyhow, let's say you distributed $98 trillion evenly across 327 million. That's basically $300,000 per person. Remember, that's extracting every dime out of every asset, including cash, in all of the United States. If we took our collective lump sum and divided it evenly among US citizens only, that's 300k per person total net worth.

That's pretty substantial. But then again, as I said before, you still have problem #1 to deal with. A consumption based mindset.

Again, living in this fantasy land where prices don't inflate all over the place due to increased wealth for your prototypical American, if you took 300k and dropped it in every American's lap, how many of them would be broke immediately? How many within a year? Within 5 years?

I think at absolute best case scenario you're talking about one generation of people that are relatively well off before they die and things go right back to the way they were.

If Americans had 300k each dropped in their laps, the majority of that shit is going right back to the 1% when Americans buy all of their shit. People would absolutely lose their minds wildin' all over the place with their checking accounts and things would go right back.

[Overdrive]

The irony is that there would be only 2 possible outcomes in this scenario:

Retailers wouldn't be able to pay their suppliers. Resulting in a drastic scarcity of goods thus devaluing the money by the hour and 11k would get you a loaf of bread by noon that day.

Or companies would stay in business by merit. People would order the shit out of amazon et al and those companies would be rich within hours again and the poor would stay poor.

It's not even about investing. Where could you invest if there's nothing left of value?

[Shogon]

The irony is that there would be only 2 possible outcomes in this scenario:

Retailers wouldn't be able to pay their suppliers. Resulting in a drastic scarcity of goods thus devaluing the money by the hour and 11k would get you a loaf of bread by noon that day.

Or companies would stay in business by merit. People would order the shit out of amazon et al and those companies would be rich within hours again and the poor would stay poor.

It's not even about investing. Where could you invest if there's nothing left of value?

:applause: :applause: :applause: :applause: :applause: :applause:

This guy gets it.

[diamenz]

the only thing i'd argue is that the wealth distribution fiscal progressives r advocating for is intended to redistribute that wealth through improved or new programs like health care, free public college or affordable housing. those that WOULD actually see a bonus to their pockets would be people that really need it such as recipients of ss and food stamps. it's not just as crazy as throwing money at people.

but ya, you're not wrong at all about people doing things like buying the newest iphone when they can barely provide for their kids. trust me, i know - take it from a guy who has a crack addict brother living off of disability checks that bought two ps4's because it's too much of a hassle to just move one from one room to another.

[Overdrive]

the only thing i'd argue is that the wealth distribution fiscal progressives r advocating for is intended to redistribute that wealth through improved or new programs like health care, free public college or affordable housing. those that WOULD actually see a bonus to their pockets would be people that really need it such as recipients of ss and food stamps. it's not just as crazy as throwing money at people.


We have all 3 over here.

Public health care is great, but it won't help you at specialized shit. You tore your achilles, ACL? No surgery, because it's not needed to be a workung functioning member of society. So insurrance companies still offer overpriced private insurances for people in danger of freak stuff. It helps for the day to day stuff though.

Free universaties are great, but the knockout criteria is if you can afford to have no income until you're finished. 40% of the students are from non academic families. 8% of bachelors are and another 3 or 4% of doctorats iirc. So anyone can start inscribe, but in the end money is still the divider here.

We have city and communal funded flats here. They're above legal standards in most cases and provide cheaper living, but it also means you're still within poorer company. Especially for kids this is a big problem if some boozing crack addicted mom let's their retarded kids play with yours. Etcetc