The hypothetical here is that there is a one week lead up, so there's limited time for people to adjust in advance.
However, you're right to point out that there would be price hikes in anticipation. Probably, prices would get so crazy that no normal person would be able to buy anything during that week.
Ah, I missed the one-week.
It's interesting to play it out across multiple timescales. Different effects unfold by twiddling that one parameter.
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I missed the one-week too, and it's my post. I thought it was overnight.
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I would imagine the government would institute some controls on what people can and can't do in regards to pricing and hoarding with the one week lead time. I think it is better than overnight for the thought experiment. Waking up with a billion dollars and knowing you are getting a billion dollars a week from now are two very different things. What controls would gov need to put in place, what are the geopolitical consequences (other countries own a lot of treasuries and dollars), if controls were in place in US but not other countries would people be flooding out of the US the week before trying to purchase every desirable good and property possible in other nations?
I think it makes it more interesting that people know it's coming.
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I think everything grinds to a halt for that week.
Why would you go to work for your normal wage when you're going to get a billion dollars in a few days?
Why you sell anything for a normal price when you could wait a few days and sell it for thousands of times more?
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