Answer to Question #57297 in Economics for George

Question

since the powerball is at 1.3 billion and there are 318 million people in the U.S lets just say you gave every person 2 million dollars would the economy collapse or help it.

Answer 1

Let's the powerball is at 1.3 billion. If there are 318 million people in the U.S and if you give every person 2 million dollars, then the total amount of money, that you should give is 318 million*2 million = 636 trillion dollars, and this sum is much more higher, than U.S. GDP, so the economy would collapse, because there is no ability to support such great sum with real goods and production.