What happens to an economy when everyone wants passive income?

[Obim34]

What are your thoughts?

Think also, what will happen if everyone buys a car, boats or airplane and there is no more pubic transport, what do you think will happen in such a scenario? Some things are not bound to happen, if it does then a whole country will shut down.

Who works then for the other person to earn passively? The situation which you pictured is unrealistic.

[mindrust]

It dies.

Somebody has to be poor and do the jobs the rich don’t want to do themselves.  Basics of capitalism.

Not everyone can be rich and live off passive income at the same time.

If everybody wanted to work despite their passive income it could work to a degree but still not fully. I mean there are some jobs, the rich will definitely avoid. You just can’t make them pick up the trash. Not happening.

[Agbamoni]

What are your thoughts?

Even if everyone has a share in owning a particular thing, it wont be an equal amount, right? So surely the division of labor and balance will still exist. For example, everyone has money, a few cents, perhaps the lowest currency value, but we still have the rich, the poor, and the middle class because one has more than the other. If we bring it back to passive income, surely a lot of individuals are working hard to start generating passive income, but the amount that it will bring will vary from person to person.

[Faisal2202]

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?

This reminds me of one definition I read in a biology book, that people, animals, and everything that is alive on Earth is different from one another. There are different kinds doing different things, fulfilling the needs of others, and then using the services of other people to fulfill their own needs. No one can learn every skill, or maybe they can after spending a lot of time learning, but still no one can master every skill.

Anyway, people need each other, and not every one of us can become a doctor or an engineer because there is a natural chain that people follow. By nature, some are good at one thing and others are good at another. That's why I can't be a doctor if my memory is weak and I am afraid of blood.

[Fragrance1122]

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?

This reminds me of one definition I read in a biology book, that people, animals, and everything that is alive on Earth is different from one another. There are different kinds doing different things, fulfilling the needs of others, and then using the services of other people to fulfill their own needs. No one can learn every skill, or maybe they can after spending a lot of time learning, but still no one can master every skill.

Anyway, people need each other, and not every one of us can become a doctor or an engineer because there is a natural chain that people follow. By nature, some are good at one thing and others are good at another. That's why I can't be a doctor if my memory is weak and I am afraid of blood.

Indeed! Specialization is what makes us powerful as a community. People need each other and that is the whole point of civilization. If you are afraid of blood you can't be a doctor. May be you are meant to explain Bitcoin to people in a better way 

Nature made everyone different. It made 800 million of different people of one puzzle.

[Cheema02]

Even if everyone has a share in owning a particular thing, it wont be an equal amount, right? So surely the division of labor and balance will still exist. For example, everyone has money, a few cents, perhaps the lowest currency value, but we still have the rich, the poor, and the middle class because one has more than the other. If we bring it back to passive income, surely a lot of individuals are working hard to start generating passive income, but the amount that it will bring will vary from person to person.

It's very rational and understood fact that if every individual have passive income and he own his own assets and business setups then wealth is not distributed equally. Individuals have different domains of thinking and making dicsions or have different capabilities to learning skills and also have different levels of taking risks so every individual is different from other or similar in different ways. Some individuals earn sufficient money and save it and then invest it for years but on the other hand some individuals not have the enough money to meet their basic needs. Due this differentiation societies have different levels of wealth and have different division of people's living. Passive wealth is just a tool to make wealth for long time but the original key to success is create opportunities on your own confidence and taking risk to built a strong start up to make wealth.

[Creeper0]

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?

To keep the economy running and human life running, we need people from every profession and every class of people. People basically work to earn money, so if everyone is rich, who will work? If everyone is poor, who will buy labor? So to keep the economy running, both the rich and the poor are needed.

If farmers do not work, we will die of hunger, if engineers do not build houses, we will suffer from lack of housing, if doctors do not treat, we will die from lack of treatment, if businessmen do not do business, we will not get the necessary products, if cleaners do not work, we will live in a pile of garbage. People do all these jobs basically to earn money, if everyone has money or depends on indirect income, then there will be no one to work. Even inflation will skyrocket and currency will have no value.

[YellowSwap]

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.

[el kaka22]

Everyone is free to want passive income, in fact it is one of the best ways to do it. The reality is that not everyone will get it, and that is the reason why it is not going to be achieved. Do not worry, in our system of economy, there will always be people who are working harder than even us, and still earn a minimum wage, because system doesn't work if everyone is rich, so some people has to stay poor for the system to work.

That means, if we ALL tried to get some passive income, then some of us have to fail, it will not happen. While in theory it looks like a possibility, just save and put money on dividend stocks and make passive income and eventually grow enough to not work, it won't be possible because not everyone will be able to afford that.

[Mhizlove]

Honestly i do believe this kind of situation is not realistic because people has different goals, talents and interests. So not everyone is interested in running a business, invest or because a landlord. You should not forget that society will always needs teachers, doctors, farmers, engineers and other professionals because they provides the service that everyone depends on. Also, investment do not replace reproductive work, rather it depends on it and before any investment can generate profits, someone must create value first through production,innovation and work. So you see both workers and investors needs one another for the betterment of the economy or for the economy to function well.

[BIT-BENDER]

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?

It's one thing to say that everyone wants to be landlord and it's another thing for everyone to actually be landlord, let's think about the possibility rather than thinking about what people just want because people want a lot of things.
And even if there is a shortage of staff in occupations that are vital to the society like the medical field or engineering sector then all they need to is increase the pay for those occupations.
People wants where they find less stress and more funds if jobs can start paying better then people can actually do what they are really passionate about.

[coin-investor]

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 situation does not exist and will never exist; people are not the same with their goals and ambitions; there will be people who will fill a vacuum in one profession based on their interests and skills, and the authorities will not let it happen if one profession is in a void; they can hire or encourage people to take these professions to balance everything.
Human nature balances everything because it's a big disaster if people want or need only one profession in their life.

[Bitcoin Smith]

There is no such world exists. But to answer that hypothetically, there is no possibility of living a life only with the passive income where everyone else in the economy does the same, there should be demand and supply for the returns to come and when there is no demand but unlimited supply which is not going to let anyone to make any money but as I said it doesn't even exists in the most perfect nation so no need to worry about such scenario that will not likely to happen in a million years,

[MRY]

There is no such world exists. But to answer that hypothetically, there is no possibility of living a life only with the passive income where everyone else in the economy does the same, there should be demand and supply for the returns to come and when there is no demand but unlimited supply which is not going to let anyone to make any money but as I said it doesn't even exists in the most perfect nation so no need to worry about such scenario that will not likely to happen in a million years,

To have healthy economic system, high rate of productivity is needed. Not all are able to passively enjoy profits without actually making a contribution to the society. The force of supply and demand will never cease to be the major force in any business industry. The state of living a passive life by everyone is just fantasy and can not be realized.

[Oasisman]

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?

That is just another "What If" kind of question. Of course it won't happen. Why? Simply because not everyone is capable of running a business/ managing investments that generate passive income. If you think owning one is just sitting around waiting for the money to come, then you're absolutely wrong. You still need to do more than that to keep your business afloat and your investment profitable.
Also, do you personally think everyone will just shift from one profession to another? Well, no, when there's a decline in the number of a specific profession, that means they will become more in demand. If something is in demand, that means they can ask for more money for their service. So, what do you think will happen? Everyone shifts to that profession this time?
See, that's why we always have balance. There are always builders, farmers, entrepreneurs, businessmen, investors, etc. If everyone tries to make passive income, most likely half of them would fail because the competition is high, lower prices, and the demand will hit rock bottom.

[Byebyebtc]

There will always be individuals available for those type of jobs, don't forget that is the reason they go to school to be qualified to get those jobs. So on a plane level individuals good to school they go to school mostly to get a job they don't go to school  to get passive income so with this understanding you will get to know that the first act of going to school is to get a job therefore geting a normal job is plan and passive income is like a side hustle or plan b
So everyone can not want passive income

[stadus]

People may benefit from their passive sources of income, but the economy will eventually collapse. That is why even if we all wanted to turn into passive income, that's really impossible because the whole economy of the country will be left useless and non-functional. There won't be active labor force that will continue to generate the supply while the demand increases, thus leaving the passive income earners as well being compromised because they won't meet the requirements to achieve business profitability.

While its actually a music to our ears hearing everyone is now on its passive income, but it actually does not work that way, and will never be.

[Bitcoin Smith]

There is no such world exists. But to answer that hypothetically, there is no possibility of living a life only with the passive income where everyone else in the economy does the same, there should be demand and supply for the returns to come and when there is no demand but unlimited supply which is not going to let anyone to make any money but as I said it doesn't even exists in the most perfect nation so no need to worry about such scenario that will not likely to happen in a million years,

To have healthy economic system, high rate of productivity is needed. Not all are able to passively enjoy profits without actually making a contribution to the society. The force of supply and demand will never cease to be the major force in any business industry. The state of living a passive life by everyone is just fantasy and can not be realized.

Let's just imagine how that world will be, everyone have the asset of same value like everyone living will have a million dollar networth then no one will be working for anyone that just create the crisis in the existing fiat money so the imbalance is inevitable for an econmy to work but it will be better if there is gap between rich and poor are not too drastic.

[imthegreat]

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?

The idea that many people want to sit around doing nothing while earning passive income is something that will never happen. The fact that many people want and understand the importance of investing doesn't mean they'll quit their jobs tomorrow and sit on the couch and count interest. The middle class has long since mostly even had part-time jobs, because these are rather unstable times. Even in medium-sized countries, inflation has accelerated so much that food prices are skyrocketing. That's why everyone is selling out to become doctors, engineers, and so on. Because they can't do anything about it, since it's very difficult for a family to save for a deposit and grow it day by day.

[summonerrk]

The idea that many people want to sit around doing nothing while earning passive income is something that will never happen. The fact that many people want and understand the importance of investing doesn't mean they'll quit their jobs tomorrow and sit on the couch and count interest. The middle class has long since mostly even had part-time jobs, because these are rather unstable times. Even in medium-sized countries, inflation has accelerated so much that food prices are skyrocketing. That's why everyone is selling out to become doctors, engineers, and so on. Because they can't do anything about it, since it's very difficult for a family to save for a deposit and grow it day by day.

That's right, and I want to emphasize that we are who we are now, not who we wanted to be. Of course, there's no better job than being an investor. Everyone wants to sit on the couch and drink Coke like Warren Buffett, but no one can afford it. We live in countries where people spend half their salaries on food. And in such conditions, saving for assets or passive income is incredibly difficult. You need to have a part-time job or have an inheritance from rich relatives fall into your lap. So everyone dreams of it, but they continue to fulfill their obligations. That's life, and unfortunately, reality is harsh on all working people.