Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Any economists out there? Can we 'freeze' the economy for 2 weeks?

11 replies

KickAssAngel · 24/03/2020 14:42

So - money is a made up concept that people invented. In theory, people are in control, although the world's economies are so interlinked that it's almost become a beast of its own.

But is there any reason why we can't just 'freeze' the economy?

e.g. Person A can't work and isn't being paid.
Landlord doesn't collect rent from Person A.
Mortgage co. doesn't collect.
Shares are not paid by mortgage co for that period. investments neither lose nor gain value. etc.

So - the entire stock markets of the world cease trading for 14 days, companies don't lose/gain money, they can then pick up again 2 weeks later (or 3 etc) when people are able to go back to work.

After all - stock markets do close down/slow down overnight in a rolling pattern around the world, and even close for major religious/social holidays during the year.

I'm not suggesting this as a practical option. It would only take one country to break ranks and try to start trading/investing/making profit while everyone else was shut down, like a thief in the night.

But - as a theoretical exercise would this work? Obviously there would be some loss anyway, but is it even an idea that's possible?

OP posts:
KickAssAngel · 24/03/2020 15:04

I'm wondering about being even more drastic than that - simply no rent collected for anyone.

There would still need to be some trade, e.g. food, utilities, but otherwise nothing gets charged for.

Is it a theoretical possibility? I'm asking because I'm interested in economics and have some spare time on my hands to ponder the impossible.

OP posts:
Bloomburger · 24/03/2020 15:05

You can for vanilla funds but would be huge issue for REPO as the day market opens you'd have millions of tickets to process which would logistically be a problem.

He told me other stuff but I didn't understand that either!

Asked DH last night. Didn't understand all of answer but I don't understand most of what's had him on the edge of a heart attack these last few weeks.

KickAssAngel · 24/03/2020 15:49

so what usually happens when it's Christmas (UK) or other days off?

If it happens for a day, why can't it happen for two days, three days etc?

OP posts:
LastTrainEast · 24/03/2020 16:05

It's an interesting idea. If we had a world government maybe even possible, but probably harder than it sounds.
I mean ok we close for xmas but you still owe rent for that period. You still earn interest on funds and so on.

Oh for the days when the 'economy' meant "if I give you a pig will you make me a new plough?"

Bloomburger · 24/03/2020 16:14

I think bank holidays etc are built into contracts/trades but wouldn't be if it were called for an extended period. I'll get DH to answer more succinctly when he gets home from work.

KickAssAngel · 24/03/2020 16:27

thanks, Bloomburger. I know it's unworkable in reality, but just wondered in theory.

OP posts:
Nordicwannabe · 24/03/2020 16:38

Thing is, although money is invented, the concrete resources which underlie it - and the work needed to create them - are very real.

Imagine person A built a house and also a flat, and they rent out the flat to buy their food. They are using up a bit of their previous work (building the flat) each month to pay for food. If you stop rent, how will person A pay for food? They are effectively giving their previous work for free to their tenant. And if we say that we give person A the food, well that means the farmers are working for free (as well as additionally paying for seeds, fertiliser, livestock - which they bought with previous effort).

That isn't the exception - all the economy is the same, just going through a few more steps of ownership (and occasionally passed down through the generations)

If you want someone to get something for free (even something a bit abstract, like being able to make use of a house) then someone else is paying in their effort (past or present). There is no abstract 'big business', it's all just people.

Nordicwannabe · 24/03/2020 16:40

(or paying in all our future effort, where the money comes from government borrowing)

Nordicwannabe · 24/03/2020 16:41

Doesn't mean we shouldn't do it, of course, but we should be realistic about what we are doing.

KickAssAngel · 24/03/2020 19:45

oh yes, I know that ultimately everything costs something, and we couldn't do this indefinitely. But short breaks are already built into the system - so could a longer one be possible?

Or - given that 4 day weekends DO exist - how long could this go on for?

And if you could freeze an economy for a couple of weeks - would it be able to pick up again? I suspect it would just suffer a massive crash, and it would be better to muddle on through.

OP posts:
New posts on this thread. Refresh page
Swipe left for the next trending thread