A couple of weeks ago, Zimran Ahmed tossed out the suggestion that the Federal government send $1 million to each person in the U.S. (Though he said “everyone,” I’m assuming that he means “everyone in the U.S.”)
Current U.S. Census estimates place the population at 305,630,009. So, that’s only $305,630,009,000,000 of new money.
Now, if he meant “in the world,” current estimates place the population at 6,736,197,368. Again, that’s only $6,736,197,368,000,000 in new money.
Because everyone receives the same amount, no one is favored over another — unlike the current plan. What does change is that assets valued in Day-1 dollars are now much cheaper than they are on D-Day. This essentially resets the game by wiping out all current debt, provided the players spend the new money on the old debt, while leaving all players in their same relative positions on the board.
On Day+1, prices will adjust to reflect the influx of money and the penny become extinct. So, how does this grant of new money not lead to hyper-inflation?