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RE: Economics: What happen if every US citizen spent $5000 at the same time?

boo boo poo wrote:

What would happen if every us citizen spent a lot of money (say $5000) all at once ('at once'= in the span of a 30 days)? And they could afford it. No one is going into debt. It all came from savings over the years.

What bad or good would come of that for companies, spenders, and investers etc.? What would happen if you changed the amount of money and the time span?

1) This could NOT happen. If in your scenario everyone in the US could afford to spend $5,000 without going into debt, then we'd likely have an very affluent and privileged society. As it is, the VAST majority of American Citizens are in debt, and more specifically the vast majority have credit card debt even. Just not even a possibility.

2) IF there were magic in the world and this DID happen, it would greatly throw off company predictions for future sales, and items would be over produced and stocked so that after a bit of a run up on prices, they would eventually drop to bargain basement prices and likely not sell well because those items had already been sold.

Anyway, perhaps you should just get yourself into position (if you're not already) to be able to spend $5000 without thinking about it and then do that.

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