Andrei Jikh's video: The Problem With Universal Basic Income

Here's exactly what would happen if everyone in the world got a million dollars ► My Stock Portfolio + Stock Tracker: https://www.patreon.com/andreijikh ► Get 3 Free Stocks on WeBull (Deposit $100 and get 2 stocks valued up to $1600): https://act.webull.com/kol-us/share.html?hl=en&inviteCode=QhhB1aDNwEDP ► ROBINHOOD (Get 1 Stock When You Sign Up): https://robinhood.c3me6x.net/c/1980551/671816/10402 ► Open A Roth IRA: https://m1finance.8bxp97.net/c/1980551/696710/10646 ► Get up to a $250 in Digital Currency: https://blockfi.com/andrei ► How I Store My Digital Currency: https://shop.ledger.com/pages/ledger-nano-x?r=535643c13ab0 ► FREE Discord: https://discord.gg/Hff86m9 ► Follow Me On Instagram: https://www.instagram.com/andreijikh/ Today I wanted to talk about what would happen if everyone in the world got one million dollars and suddenly everyone became millionaires. Because as of right now, millionaires make up roughly 0.9% of the our world and yet, they own about half of the world’s entire wealth at $361 trillion dollars in approximate value, while the bottom 56% or roughly 1 out of 2 own only 1.8% of the global wealth according to the annual Global Wealth Report: https://bit.ly/3nuuBVx The idea of giving people money is becoming really popular lately especially when it comes to what’s been going on in the world with talks of more stimulus for the economy and even other universal basic income plans like Andrew Yang’s plan which comes in the form dividend payments of $1,000 a month. But let's go on the extreme end of things for argument sake and assume that everyone all of the sudden got a million dollars over night. For most people, if they got one million dollars they’d probably be very happy about that and they’d have lots of ideas on how to spend that money. For example, the Charles Schwab Modern Wealth Survey asked people what they’d do if they got one million dollars and they found that 21% of people or a 1/5th said they would save it for a rainy day which is smart because one of the keystone principles of personal finance is to have an emergency fund that covers at least 3 to 6 months of expenses, that’s one of the first rules of basic financial literacy. Another 23% of people said they would invest that money which is smart. If you can invest one million dollars the right way, you can actually live your entire life withdrawing $40,000 a year and theoretically never run out of money because your money would grow faster than you can spend it. All you have to do is buy something like VTI which is an index ETF that tracks the total US stock market and hold on to it for the long term and it should return around 7% per year (over the long term) Another 28% said they would pay down debt which is also extremely smart because the worst form of debt is credit card debt where the interest that people pay on credit cards can be upwards of 23% so getting rid of bad debt is smart and should always be a priority. Lastly, over half of the people polled or 54% said they would spend it on a house, a car, or leisurely expenses like traveling. But what if people actually got that million dollars? If that were to happen for real, the first thing people would do is go out and start buying stuff in mass so you’d get massive amounts of traffic, accidents, and problems not unlike the Black Friday shopping deals we see every year. That’s because as the announcement of this million dollars hits, it’s going to take into effect piece by piece but not all at once because businesses have to adjust their prices just to make sure they have enough supply to meet this insane spike in demand from all these newly minted millionaires. Businesses would not be able to supply everyone with enough stuff so grocery stores, movie theaters, restaurants, and basically every business that sells a product or service will be forced to shut down in order to re price everything to reflect this new demand. As a result, the dollar menu in McDonalds now becomes the $100 menu. A Toyota Corolla would increase from $15,000 to $150,000, and digital currencies like BTC almost literally go to the moon. This is also true for rents and home prices because they would skyrocket 100% or more almost overnight just because landlords know they can increase rent prices across the board and people would be able to afford to pay them. Overall the cost of living across the board would go up and most people would go broke again over the span of six months to one year. There's a few more interesting things that would happen and actually are happening in the world right now due to hyperinflation which the video discusses. *None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.