What if money had an expiration date?

Question

Imagine if your savings did not earn interest at all, but instead "went bad" - wouldn't that encourage people to spend as much as possible, as quickly as possible, to make sure they get something for their bucks before they expire?

And wouldn't that also put an end to the rich-and-poor divide? You'd be as rich as you are able to contribute to society. Family fortunes and having power over people due to wealth would be a thing of the past.

What do you think of that?

Answer 1

Not to worry. Our governments will one day put a date restriction on old money that has not been in circulation for years. A possible end to a corrupted cash monetary system. Which includes the drug trade and any other street or illegal business transactions.. One day you will only have your credit identity for your purchases and bills. So money as we now know it will be just for the collectors of antiquities. Old money was easier to counterfeit this is one reason it's being replaced. So any old money of certain sums will become suspect and bad luck for it's owners. What do you think of that?

Answer 2

You people are really dumb.

It wouldn't make a difference because the rich don't keep the greater part of their wealth under their matresses.

The rich would simply keep investing in property of value such as real estate, stocks, bonds, and put their money into bank accounts.

See, when you put money into a bank, they don't take your cash and put it in a deposit box. It simply goes into a vault with all the other cash and your account is credited with a value or dollar amount. Even if the account went stale with inactivity, most rich people would just shift their assets to real estate and stock (where it is anyway.)

The rich would not be affected at all.

It would be the poor who would be hurt because they are more likely to keep cash in their wallets, drawers, under the matress, in a savings account, etc.

Furthermore, the poor would not change. Until they decide to produce more capital, they are going to stay poor.

The difference between the rich and the poor isn't how much money they have, but how much money they earn. Productive people are going to keep producing and will always have more than those who do not. It's a fact of nature and a fact of life.

Your hypo is assinine and shows a complete ignorance of the political and economic realities and history of this great country.

Answer 3

is call inflation: money looses it buying power. If Iinflation occurs rapidly the economy would corrupt, since it will create more buyers than sellers: people want to get rid of money (buyers) no one want to get money (sellers). Thus that would create economic downfall b/c there will be no saving and without saving, ivestment will decrease as a result no new jobs for people who join the labor force. As populatin continues to grow, unemployement rate rise (no new jobs b/c no envestment). Ultimately there will be no encentive for people to work, b/c money will not accumulate to anything, hence trade among commerce will fail b/c there is no common commodity. That's why the fed is very concern about inflation rate. (this is rough answering) but i hope that will shed some light to ya.

Answer 4

There will always be a "rich" and "poor", these are subjective terms that describe the haves and have nots. People are different and due to that fact they will obtain different incomes/lifestyles. If money loses its buying power than people will switch to a another "currency". For example, in countries where inflation is rampant people start exchanging their currency for another country's more stable currency. If all money loses value than people will switch to gold, land, or some other "currency".

Answer 5

Inflation is exactly that. An expiration date on paper money.
So nothing would change.

Think about it, you would buy things but if you are smart you would buy things that are not perishable or that hold values or increase in value with time. Or simply build a business with that money and if you are successful then it will generate lots of income now and for a long time.

For ex: buy gold, then accumulates tons of it and then become/stay rich forever.

Answer 6

In a weird and funny way, it does expire. Well not the money, but people. This is the reason people do spend money, becuase they wanna get the luxuries in this lifetime. We want everything that is happening now, not later. This is one of the biggest reasons we dont all save money and invest and stuff. Everything happens NOW, becuase we do expire. What a twist no?

Answer 7

I think Zack's answer is the best one available. It would be funny to go into costco and pay with a bill that's dated 10/12/06 and have change returned that is dated 10/08/06, people would be pissed! We'd spend so much money in just trying to print new money. especially coins.

Answer 8

The rich will always find ways to be rich. They will convince you to buy their expired money for good money. Money is not the only factor that makes you rich. Wealth is the accumulation of assets.

Answer 9

good question...... but the economy would adjust and be able to benefit people it would just be sped up.. people have the greed and seem to be the most unsatisfied animals on the planet so i am sure humans would find some way to screw that up even .... what if everyone could only have the same resources as everyone else... ?

Answer 10

Very good question. All Black money would come out if money had an expiration date.