What happens to an economy when everyone wants passive income?

[iv4n]

You can't eat just the ice cream someone has to make it first.

What are your thoughts?

Well, there's nothing wrong with everyone wanting passive income, but not everyone can have it. As you pointed out, someone needs to make the ice cream first. Maybe the future (distant one, I guess) will bring more opportunities, with technologies & AI who knows what is waiting for us... but even then, someone needs to create, build, and maintain all that...

And I don't think the goal should be a world where nobody works... maybe the goal should be equal or fairer opportunities and a better balance between work & life. But I guess we are far from that as well...

[bangjoe]

If everyone becomes landlord, investor and owner then who will become Doctor, engineer, teacher and farmer? There would be shortage of labor who give services and wages would spike for such jobs. Secondly if everyone own assets , the returns on those assets will drop. For example a house that give 8% rental yield would give 5 or 4 percent. So passive income will get harder. Thirdly if too many people sit out and let money work for them productivity will drop. The highlighted point could be if everyone is trying to collect rent then who will pay the rent. You can't eat just the ice cream someone has to make it first.

What are your thoughts?

Logically it is not possible in the world of work like that, like what for example more people who can do business and have a company but the fact is that everyone is not destined for it or can be said that everyone has their own role in this life because they are born from different backgrounds, different logic and need to remember also, so it is impossible to refer to the same thing as putting oneself to earn passive income.

Even if it's like that, let me work and try because I need funding from investors and of course ready to provide profits in accordance with the process.

[EarnOnVictor]

If everyone becomes landlord, investor and owner then who will become Doctor, engineer, teacher and farmer? There would be shortage of labor who give services and wages would spike for such jobs.

You thought about this wrongly. Being successful doesn't translate to the same field of success, so the chain can't be how you viewed it. Everyone can be successful and still be in all fields. More so, if the economy permits it, you can be a teacher and be successful, but that doesn't stop you from teaching. Don't also forget about new graduates and foreigners who are ever ready to fill the space, if at all, there's a shortage.

Secondly if everyone own assets , the returns on those assets will drop. For example a house that give 8% rental yield would give 5 or 4 percent. So passive income will get harder.

That is true, due to supply. Is that not good? Housing inflation is a problem on its own.

Thirdly if too many people sit out and let money work for them productivity will drop. The highlighted point could be if everyone is trying to collect rent then who will pay the rent. You can't eat just the ice cream someone has to make it first.

This is not the reality of what can happen. Take a look at those people who even got good houses for rent at their young age, do they stop there? No, they continue working until they get old. This is the only life that could afford them more of those properties for their resting age.

[Zlantann]

Passive income my foot, we are humans who aren't programmed to do the same thing to make money, if you have a doctorate degree that can net you $20,000 every month or more will you throw that away and go for passive income job?

Good peer to peer traders earned weekly, some even make money every day, the question is, can you trade and make money every day? Many people are getting wrecked trading online, they are better off working a 9-5 job out there.

It's impossible for everyone to want passive income, it's not even as if all passive income are good, some salary earners make better money than people who are making passive income.

You are correct. Those who earn high income might not require passive income since they earn enough to cover basic needs and save. But some people have the mindset of becoming very rich, so they are not contented with the amount they earn. Others are also concerned about retirement or job loss, so they want to have a passive income they can fall back on. 

I still share the same idea as the majority in this thread that not everyone would have passive income. Some will work as employees till they retire.

[Dunamisx]

We tend to have a more balanced economy when everyone is having a passive income, but let's be realistic in what we are saying because virtually not everyone will definitely have a passive in, but in an economy whereby most of the citizens are having this in place, poverty rate is going to be reduced and many of their youth are going to be found engaged in doing one thing all the other, this increasing activities in the economical sector will develop more productivity to the economy and this is how we measure for GDP of the country when there are several opportunities for everyone to be engaged on anything they can earn from.