phiwong t1_j9uwpkw wrote
To the masses, not really very much. One estimate of the wealth of the 0.01% is around 50 trillion dollars. Divided over (for ease of math) 10 billion people, this is $5,000 per person. Not an insignificant amount of money but hardly life changing for an average income earner even in a relatively poor country (presumably this is a one time deal)
Economically, in any real sense, it would be a disaster. Most of the wealth for the very rich are held in assets (property, ownership of companies, etc). It would be pretty much impossible to liquidate it quickly without causing markets to crash and companies to fail.
For another perspective, total global GDP per year is estimated at 100 trillion. So the amount you're discussing is 6 months worth of global economic activity. Certainly substantial but not exactly "everyone could live in luxury for the rest of their lives" substantial.
NavaHo07 t1_j9v6gjl wrote
The average American couldn't handle a surprise couple thousand dollar bill. And that's America. 5000 is living like royalty in some places. 20,000 would be a substantial windfall if we're talking about a fairly typical American family of 4 so how would it not be significant if you looked at countries where you could retire on that kind of money?
engineerfieldmouse t1_j9va4tk wrote
5k would instantly lift all of Africa out of poverty.
phiwong t1_j9vfpcw wrote
No it won't. The average GDP per capita of Africa is $2000 per year. It would make life better for awhile (if it even could be done practically speaking) but it does not solve any long term issue. Of course, there are several countries where this would make an immense difference (the poorest of the poor) but it wouldn't lift all of Africa out of poverty by any stretch.
The really wealthy are really wealthy by the standards of any one individual but there is this misunderstanding that this compares in any way to the long term economic output of a country or region.
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