What would theoretically happen if no one in the world spent money for a whole month?

Question

What effect would that have on the world in that month? Would anything happen? or would it ruin everything?

Answer 1

The prices of goods will come down, the adds, the excuses for sales and the gimmicks to sell will go up!

Answer 2

Theoretically or practically, whatever way you call, money is means and according to Law of Conservation, value of wants must be equal to value of means. Value of means or in other words money spent for one month cannot be zero because value of wants cannot be zero for one month taking world as an entity.

Answer 3

"Theoretically" the stock market would probably crash. Businesses (especially small businesses) would suffer, because without any income being generated they cannot afford to pay their employees, rent, ect. One plus would be that gas prices would probably go down.

Answer 4

theoretically, nothing would happen, except everyone would *probably* die.

Answer 5

You'd have a lot of really hungry people who didn't go to work.

Answer 6

This is notably describe as a decrease in aggregate demand.  It would lower prices and output and thus, lowering living standards.  One could also argue that less spending lowers real GDP by itself and that would also lower living standards.

Answer 7

The government would receive no money in taxes to spend on improving the economy, businesses would go bust, people would not gain access to basic goods and services.

It would not be a good scenario by any means...

Answer 8

Heck, I'd just like to see if no one in the US could spend money for a DAY!

Answer 9

What would happen is that people wouldn't starve, it's not like currencies have existed forever.  It would be a shock and demand would probably decrease due to that everything is priced in money.  But if we adapted soon back to bartering, the markets would be back up but would run less efficiently since everything would have to priced in terms of other goods and services and transaction costs would increase.  People would eventually resort to using some other type of currency such as salt or gold or other commodities.  Well that would be in the long run, if it's just for a month, people would still barter but the economic recovery would not be substantial.