The second. The smaller overall pool of money would cause massive deflation and prices would fall locally. (Assuming that's not in an existing preset currency.) Then you have 50% of people living on 1/5th of what the richest live on, not a bad deal. In the first one, you would have ridiculous hyperinflation (A la Zimbabwe a few years back or the papiermark, which had to be converted to reichsmark at 1,000,000,000,000:1 odds after the first world war.) and the bottom 50% would be absolutely screwed.
Inflation is obviously a problem in the first country, but that's beside the point of my post, though it is also a problem I'll admit
Alright. Assume me and you are doing our jobs and stuff. I have 2,000 bucks and you have 2,100. After a year of working/selling/buying I have 2,500 and you have 4,000. Am I any worse off because you're richer? No. If you made that money by robbing me then there is a problem, but it's that you're a thief, not that you have more money.
Seriously, the actual number that the money occupies is not what is important in an economy, it is the value of the money itself. Zimbabwe's money was so inflated that you needed several dozen trillion Zimbabwean dollars to buy a burger at McDonalds. They had to scrap the whole thing and start over.
Money is a means to an end, and that end is the effective establishment of standardized trade based upon a more objective system of value than that which exists with barter alone. Money is nothing but an abstraction of worth that we all mutually agree to use so that our trade will run more smoothly. Coming to believe that money itself is objectively important and serves as an end is a failing, because it forgets the actual purpose of money in our society and replaces it with obsession, which we have historically termed "greed".
It was a hypothetical scenario designed to point out a specific situation, not an explanation as to why hyperinflation is good. But while we're on that topic...
You keep saying these things like you think there's some kind of distinction between "lawless capitalism" and "free market with no government intervention". It strikes me as demanding to know the number of angels dancing on the head of a pin, and it's really making the rest of your argument hard to take seriously.
Because there IS government intervention, it's just sporadic, heavily centered in specific sectors (there is absolutely nothing capitalistic about the Chinese banking sector, for example), and unpredictable.
Again, Russia could be construed as a "free market with no intervention" if you assume the bureaucrats, local thugs, etc are already paid off and then ignore half the nationalized industries.
And it's still giant ugly quote-ladders.
That's how discussions in which I'm arguing with about 5 people at once on a pile of different topics go. The alternative is ignoring all but one thing or making a pile of double posts. You can tell who I'm talking to at any given point and what I'm specifically talking about, which is about as good as it gets.
That's a red herring argument, you are comparing a richer country to a poorer one. I could easily turn it around:
Would you rather live in a country where 1% make a 2.5 million a year and everyone else makes tuppence a year or where the top make a 2.5 million still but everyone else makes $50k?
Obviously you'd rather live in the second country because the first one is a country of extreme poverty. But the second country doesn't just distribute the wealth better there is much more wealth.
So what? Poverty is bad, but their poverty is utterly irrelevant to income disparity.
Whether the richest 1% have a million dollars or ten million or a hundred million, the poorest 1% aren't any better or worse off. Would you rather make 50k or 10k? Claiming the problem is "income disparity" and not "poverty" is seriously messing up priorities.
hey look some sources, they generally conclude that happiness negitivly associates with income inequality, from that I can only assume we would all prefer to live in a more equal society given otherwise identical characteristics (these two aren't behind paywalls, if you have access to an academic database there are quite a few with similar conclusions and results)
So I'm going to say income disparity itself seems to be indicative of bad things at the very least
Yeah, some people are possessed by jealousy and envy when they see other people doing well. Have you ever heard the saying "the grass is greener on the other side of the fence"?
People today insist mankind is immune from extinction, but we sit looking at massive climate change, huge pandemics, and a interconnectivity that makes the distance between any two people in the movie industry connected by less than 7 direct connections. I don't know how it works for people outside the movie industry, but I doubt it's very big given how the furthest I saw of people who knows someone who died in Afghanistan is Friend of a Friend. In this world, we have the ability to follow the evolutionary drive of spreading the species as far as possible, and god's command to spread fourth into his land and be fruitful and multiply. Without spreading into space, we will reach an absolute limit of our ability to do this, assuming we don't all die from super Ebola.
There are people going into space without taking other people's money to do so, and with safety standards far better than those of NASA.