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learnedperson
RE: Economics: What happen if every US citizen spent $5000 at the same time?
This would be a one time demand shock that would serve only to massively increase prices and result in a large pecuniary transfer to suppliers.

I am assuming this happens by surprise somehow, so that suppliers don't have time to react, they are just confronted with lots of people wanting to spend money quickly. The market will realize that ravenous spending will threaten inventory if left unchecked, the check will be to raise prices. People will thus have to pay more for everything until the $5k is gone. Then things will go back to normal.

If this was planned somehow, it may result in some increased employment prior to the binge, but just how much depends, it probably wont be too much because all companies could really do is run factories longer, maybe some would build more factories, but a one time binge probably wouldnt justify the costs of building a new factory. So in this case, it would all depend on how much extra was produced in anticipation of this event, but likely not too much more could be produced so the main effect would be high prices.

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