r/TheyDidTheMath trying to understand what wealth redistribution would look like.

https://reddit.com/r/theydidthemath/comments/lawrli/request_if_all_cash_in_the_world_would_be/

  • MichelLouise [he/him]
    ·
    edit-2
    4 years ago

    To be fair, the OP (missing link btw ^^) was precisely asking how much each would have if all cash was distributed equally and globally. Cash, as in "coins and banknotes". And u/sqmon technically just answered the question right.

    Michael Stevens had a video about it, but basically, that's called M0. Here is a summary of the rest:

    • M1 = M0 + the rest of "immediately spendable" money, like checking accounts. 25 trillions. $3'205/human.

    • M2 = M1 + stuff a bit less accessible like savings account or time deposits. 60 trillions. $7'692/human.

    • M3 = M2 + long time deposits, institutional money, market funds, large liquid assets, ... 75 trillions. $9'615/human.

    And by the way, it has no economic sense at all, but since they did the math, I figured... The world GDP is around 88 trillions. Redistributing the entire wealth produced every year by sending a check to everyone would mean $940 stimmies every month (arguably not for long lmao).

    • domhnall [he/him]
      hexagon
      ·
      4 years ago

      Yeah, they did answer the question as asked, so no shame there. I was mostly just amused by the concerned comment saying that it’s “worryingly low, “ as if to imply that wealth redistribution isn’t practical because it would just make everyone equally poor, and that the purchasing power of $614 would remain the same if something that absurd were to happen. That old chestnut.

      • domhnall [he/him]
        hexagon
        ·
        4 years ago

        Also, my mistake for not posting the link. I should have checked the rules. Trying to fix now.