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.

[justdimin]

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.

Humans are built in a way where we always want more and more. Not everyone of course, do we see some people who have some passive income and they are all fine with it? Of course there are people like that. But just to give an example, if Elon Musk stopped 10+ years ago, sold all he had, and just lived off the passive income he has, could he have lived that way? Of course he could, it would be way more than enough and he would be a rich person who just sits around doing nothing.

The reason why he doesn't is because humans are not build in a way where we say this is enough and we keep working to make more. So between people who can't achieve passive income ,and people who won't be happy with passive income, we will have only a small portion of the public who will be happy with their passive income and stop there.

[Leahized]

What are your thoughts?

As you are doing, it will never be implemented. Because indirect income is not possible for everyone. If so, the earth's balance will be destroyed. For example: People who live in low income families, do not have much money and property. So how can they own so much wealth? However, there are many wealthy people, most of whom do agricultural work. They play a major role in the productive sector despite having more resources. However, everyone tries to earn money based on their own situation, which cannot be held by high status people. However, those who own a lot of wealth should refrain from unnecessary spending, because the amount of expenses should never be more than the income.

[Bluedrem]

It will never be possible for everyone to be an owner. The owners' home will always be their loyal workers. Finally, as long as the productive principle continues throughout the world.
Because not everyone can be a landlord, those who own the land are the real owners and if they do not produce, no one will find food. Again, those who run the garment industry cannot all be owners because if everyone does, there will be no one to buy from and when the buyers decrease, the workers will automatically move away from there, so the workers will remain as workers.

[Royal Cap]

I think such a situation will never happen in reality, because not all people have the same interests and goals. Some like to do business, some like to work, and some are comfortable in teaching or farming.  So it is not realistic that everyone will become an investor, or owner at the same time, and it is also not right that people will quit their jobs just by investing. Many people invest gradually while working. On the one hand this provides income, and on the other hand savings are also built for the future , so these two things can go together.

[Bitcoin.com97]

At first things doesn’t work the way you may think about how the economy functions. There must definitely be someone who would be there as they said not everyone who would become very wealthy in life. Of course there are people who are burn with silver spoons, so there would always be those who would work and the more skillful you could the more chances you creates employment opportunities for the society out there.

Exactly,many are born with a silver spoon while many are searching for there's,so it's not possible for everyone to get everything  right, everyone has different interest and talent ,many would want to be a teacher while for others ,they would want to be a doctor ,so different area of specialization, everyone many not get things at the same time,those with the silver spoons can acquires all they want on time while those working to get the silver spoon many take some time to get it ,so the race is usually different for everyone.

[crwth]

Hmm. There might be more people who are into making more productive investments, maybe more into real estate or manufacturing type of thing? I think it gives more redistribution of wealth in terms of all the surrounding things to be in passive income.

We need to understand that there should be someone producing value in order to receive income, whether it's passive or not.

[Cheema02]

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.

Passive income have great importance in an ordinary and extra ordinary individuals life because its improves the economy. Inflation increases day by day which addedmore discomfort for people and extra income helps a lot for people who faces instant trouble. Also passive income helps to gain financial stability. But along the facts its also very authentic point that not every individual has the ability to make Passive income because it demand proper skills and information to built it and not every individual is intersted in it just due to financial conditions. So by creating job opportunities for others helps people to grow financialy stable and make assets for future to prevent  himself from future trouble. So if an individual make good money so then he
needs to keep himself updated with new skills and education.

[Samlucky O]

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 truth about life is that everyone can not be equal or everyone can not get what they want. life is All about level and hirachy. As our faces look different so is our destiny and purpose in life differs. Sometimes Our desire and demand doesn't work as expected. Sometimes we get what we want and sometimes we don't, our financial level can not be thesame otherwise there will be problem in the economy. There must be loser for some to succeed and some winners must emerge as a result of some people's carelessness. The truth is that everyone wants to succeed in life and become best version of themselves by becoming a boss or fulfilling their destiny, but life will always have somewhere to put you. And that's is why everyone must not fufill their destiny. If some people even fufill their destiny, it will become the downfall of others, that why everyone must not get what they want in life. Someone must lose for the other to win and someone must win for others to lose, life is vise vera, that is why someone must make ice cream for others to eat.
 

[Cookdata]

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.

Everyone can't be everything at the same time, if you are a medical doctor, you can't be a farmer, to are going to need service of farmer and you are going to pay for their service. You are going to need an engineer be it chemical, mechanical, electrical or civil engineer to handle your life, you need those 4 engineering people in your life. Let's not mention other services for your basic life such as plumber and mechanic for service your cars.

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?

Life is not fair, I hope you know. You can't have everything. If you have rentals, you might not be a doctor or any of the above. By the way, those above are not passive income they are jobs that brings money for the service you render to people, you either get paid for the work get paid by who hire you in their company.
Let's say you have investment that generates you some passive money, there is going to be another place where that money is going. There is no way you are going to everything in life, you can't be all of that and think you can farm, no way.

[Faisal2202]

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.

People normally gravitate toward what they are really good at. You must have watched dozens of movies, series, and educational stuff that motivate a person to do what they like the most, no matter what others are saying. If you want to play, then play, or develop, etc. Everyone has different tastes in life and wants to contribute in different ways. So be it, and give your full potential. That's how you can make your life easier.

The metaphor you used is really nice, but when we try to go deeper into this mess, it becomes messier haha, because plenty of people end up in roles they are not suited for. Yesterday, I went for a job interview. I had to sit and wait for a long time there, and that's how I got to see the role of the people there, which I knew before, but I understood there that this is not for me. Because I don't like to sit around for straight hours without working. It really pisses me off. I need work. If I am sitting on a computer or at a table, I can't wait there.

I assume everyone hates waiting haha.

[ZAINmalik75]

Well, there's nothing wrong with everyone wanting passive income, but not everyone can have it.

That's the point. Everyone in this world would want to become rich or wealthy, but not everyone will get to have that because not everyone will be privileged and blessed and there will only be a few who will get to have their dreams come true, and others will have to compromise and live without that. Similarly, when it comes to having passive income sources, it is not possible for everyone to have that, mostly because of a lack of resources and possibilities, which is the reason why so many people need to work to earn a living because they can't start businesses or make investments that can do the work for them.

So we can surely say such things theoretically, but practically, it's not possible for everyone in an economy to have passive income, so problems such as a lack of work labour and such will never occur for this reason. The wealth of this world will never be equally distributed, which means that there will always be people working for other people for money, and that will happen even if everyone will be rich, which won't happen, but I'm just saying it hypothetically.

[Ziskinberg]

It's mathematically impossible for an entire economy to run purely on passive income. If everyone is just extracting yield, the actual production of goods and services grinds to a halt.

The market would eventually make asset yields crash to near zero, and wages for actual labor would skyrocket. At the end of the day, your passive income exists because someone else is out there actively working.

Well said. If there are no active workers, the idea of passive income will never exist. How would you expect to profit when everyone else around is also waiting to profit?  So there must a be a division of people, those who are actively working and those who are funding cash to make such investment works.

Otherwise, the whole world will crash and the economy will collapse. And you can't expect that passive income will continue to be profitable in the long run.

[Questat]

The economy will shut down. It's highly impossible for everyone to focus on passive income because the whole point of active labor force will be useless. Or let's say passive income will no longer be possible if there are no people left actively generating an income. So if possible, there should be a well-balanced between active and passive income.

Active income can exist without passive income, as most people have been relying entirely on their wages and salaries full time or part time. But passive income is impossible to exist without active income, although it may but it rarely exists.

[passwordnow]

So everyone becomes investor and rich, I don't think that's a balanced economy in there when all people wants passive income. But, the lucrative industry will be visible at that moment when everyone seems to like going on for investments that will produce income passively. I think that everyone is already at their peak of financial education when that happens, workers will have that chance to become richer while being lowkey won't be leaving their jobs because what matters is still having the kind of cash flow that will make them add more to their investment and potential passive income.