Finally there is an increased marginal utility the less money you have, not more. So when you have $0, each additional dollar gives a large marginal utility; whereas when you have $10,000 each additional dollar gives a smaller marginal utility. When you’re poor each dollar goes a long way. So in your scenario people are doubly worse off: money is being siphoned off at a %1 rate every day; there is no compound interest; and the 9,999 people have lost greater marginal utility than the 1 person who won $10,000.
So if you had 10,000 dollars, you would buy all 10,000 lottery tickets to win the grand prize of $9,900?
Whenever you’re investing you always want to use compound interest. $10,000 invested would give you a grand total of $43,219 after 30 years with 5% yearly compound interest.
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
Finally there is an increased marginal utility the less money you have, not more. So when you have $0, each additional dollar gives a large marginal utility; whereas when you have $10,000 each additional dollar gives a smaller marginal utility. When you’re poor each dollar goes a long way. So in your scenario people are doubly worse off: money is being siphoned off at a %1 rate every day; there is no compound interest; and the 9,999 people have lost greater marginal utility than the 1 person who won $10,000.