Since money basically represents the confidence in the capacity of a countries economy to provide you with a service or good would the value of say the US dollar fall if everyone quit working overnight?
In: Economics
money’s value comes from the confidence in said value and the system that establishes the value. I have $5. I know I can go to the store and use it. That’s confidence. The relative value of that money comes from a multitude of other factors.
If stores could legally decide to stop accepting money, then I lose confidence in the money SYSTEM. money loses it’s relative value. stores that do still accept it want more now for the same stuff, inflation. on and on we go into the world of hyperinflation.
yes, the value of the US dollar would fall if everyone stopped working overnight but it would be because that would spark chaos in regard to supply and demand.
You’d tighten up your purse strings because you’re not earning money any more, so you’d value $1 more now than you did yesterday. This would slow spending which would at least theoretically make money more value. But there’d be crazy toilet paper hoarding and stuff like during covid which would cause inflaton. Nobody is working anymore (producing stuff) so even if demand settles down you eventually have 0 supply at which point having money is completely useless because there is nothing to buy anyway.
of course, there would be stuff “to buy” beyond money being useless but since nobody is working eventually even a barter system doesn’t work. so we just start stealing shit from each other instead, until eventually we come to our senses and realize we can make the things we need (aka work) but we can’t make EVERYTHING we need, so we start reforming society. barter system comes back. we realize it’s hard to determine how much a car costs in the form of chickens, so we re-establish a money system, and here we are full circle back at where we started.
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