I already figured out the answer after posting this thread.
What you’re saying is what I thought at first, but I realized I was wrong. Supply and demand is more complex than that. Yes, if you just increased the amount of paper capital, that would happen.
What would happen would be that the quality of EVERYTHING would go up. Because in order for these people to become wealthy in the first place, they would have to produce higher quality stuff.
Building a Ferrari required roughly the same amount of metal and raw materials as a Civic. But by arranging those raw materials in a smarter way, it makes that same hunk of metal worth 390k vs 27k
But if the engineer who was building Civics now learned to build Ferraris. He can now sell them for 390k vs the 27k he was making. Now everyone would make similar quality shifts. Chefs start making higher quality meals, companies start making higher quality furniture.
So for everyone to become millionaires, they would have to stop producing ‘Civic” level work, and start producing “Ferrari” level work.
it’s like lowtek said... “What if everyone were living up to their potential."
Dubai’s current wealth has almost nothing to do with exports. What happened with Dubai was the prince realized ‘umm this oil isn’t going to last forever’ so he built up Dubai as a self-sustaining tourism and business hotspot so they would still have an income when the oil supply finally dried up. It wasn’t just them balling out on oil money.
Although Dubai's economy was initially built on revenues from the oil industry,[4] revenue from petroleum and natural gas currently account for less than 5% of the emirate's gross domestic product[5]. Dubai became important ports of call for Western manufacturers. Most of the new city's banking and financial centres were headquartered in the port area. Dubai maintained its importance as a trade route through the 1970s and 1980s. The city of Dubai has a free trade in gold and until the 1990s was the hub of a "brisk smuggling trade" of gold ingots to India, where gold import was restricted.
Economy of Dubai - Wikipedia
Dubai:
If you look at the history of Dubai it’s fascinating. The Sheikh got the worlds best architects and basically told them to go Apeshit. He’s a lot like these other billionaires. People would tell him “sir there’s no possible way we’re going to get enough sand to build entire islands that look like palm trees.. you’re being completely ridiculous”.... Sheikh: “just do it” ... "sir there’e no possible way this project can be done”.. Sheikh: “I want it done in 3 weeks” Engineers “ARE YOU SERIOUS, THIS IS IMPOSSIBLE”.... anyway, 3 weeks later it was done.
He build value from nothing.
The world’s greatest architects went in there and build the projects they always dreamed of but couldn’t do anywhere else. Why? NYC had rules. Sheikh Mohammad was just like “Impossible? F*ck that... just draw something and we’ll figure it out.” The result is F*cking insanity. Underwater hotels, ski resorts in the middle of the dessert man-made islands the shape of palm trees that can be seen from space.
Again, they build value from nothing.
The same amount of raw materials can be used so build some useless trinket like a snow globe or it can be used to build an iPhone. The same amount of raw materials can be used to make a Brooklyn ghetto as is needed to build a lavish underwater hotel.
What you’re talking about is when you increase the supply of paper currency without increasing the supply of value of it represents. When you increase the amount of paper without increasing the value, you get just that... more paper lol. When you increase the actual value you get just that... a world with a shitton more value. It’s really simple. Create more paper = a world with more paper. Create more value = a world with more value. More convenience, more technology, better food.
The world has more ‘value’ in 2018 than it did in 307BC. There are roughly the same exact atoms on earth that there were 2500 years ago. Just people use them in smarter ways.
Snd this is why this discussion is important. It helps us understand the essence of money and trade, which is why i posted it. Not some fantasy question.
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