What would happen if money was banned?

Question

I'm not an economist or anything, but I started thinking about---What would happen if the world collectively banned all types of money/payment? No one would have to work to survive because everything would be free (food, shelter, etc...). Those who enjoyed their jobs or just wanted something to occupy their time or have friendship could work if they wanted (with no payment).

I know this is far-fetched and eventually people would start creating their own forms of payment, but I was interested in what people think might happen. What good effects would it have on the world? What would be the repercussions?

Answer 1

money is just another form of currency. currency is needed for services rendered, whether it be in the form of cash, cows, pebbles, or returning a service. some way of paying for things will always be in a human society.

Answer 2

People always want more, so I'd guess barter and trade system would be put back in effect -- There wouldn't be police men to stop the thieving so, that is one reprocussion, at the same time the community would have to come together some how, forcing people to become how neighbors should be... not so wrapped up in the hustle and bustle of everyday life

Answer 3

Sounds like a precursor to slavery.
The govt would have to provide everything as it would have to be them that banned the money. People would still have to do things but since you didn't get paid you would likely have to be forced to do it. Could also be communism or socialism as in those places its the same kind of thing but their money is worthless which amounts to the same thing. If you want to see a real life example of the progression of that just watch events in Venezuela closely in the next few years. You will be getting a first hand view of watching a society disintegrate.

By the way people would probably have to barter in lieu of money which will amount to the same thing or use gold as in the past. But gold is real money is is not a FIAT (faith in and trust) like dollars or such. Gold is not consumed in its use. Gold does not corrode or tarnish. All the gold ever mined is still in use or existance today. Gold would likely be collected up by your money banning govt anyway though much as Roosevelt did in the 30's.

Answer 4

People would still make and barter simple things locally. However I don't think that people would ship things long distances (say goodbye to tropical fruits and salads in the winter) nor would they engage in complex manufacturing like making computers or cars. This is simply because if you can't make a usable product by yourself it would be very hard to trade or barter it for something truly useful. People would stop going to school and start working on making the things that we need, learning to make your own pottery, grow your own food, spin your own yarn, etc. The cities would quickly empty out because there would be no way for them to get food.

Answer 5

Well far-fetched.
The world as we know it and as we don't it would collapse. If no one had to work no services would be rendered, no products of any type would be produced. Back to the stone ages...
But with the pollution problem and tainted water we know have, all of the equiptment used to curb this growing problem would no longer be updated and/or fixed so the pollution would grow at an alarming rate, far more alarming then it is growing know.
So to answer your question: we would die, by the millions, until none are left.

Answer 6

We would go back to our roots ---- the bartering system. I need your service to I in turn offer you my service. Nothing would be free, it would cost you something. We would still all have jobs in order to continue services needed (growing food, etc.) We are too pampered a society nowadays to give up our comforts and go back to the basics of food, water, shelter. The best thing? No income tax!!!!!

Answer 7

Sooner or later, as you say, people would start trading goods as a form of payment...the world would go mad without money! If everything was free, everyone would want as much as they could and there'd start being fights and things....Very interesting question though-I actually can't imagine it!

Answer 8

That is called true communism.

Communism does not work because there is always a personal bartering system. Currency just allows personal bartering to happen faster.

Answer 9

some village in india they give food ,food grains to work in the field insted of money like that they may exchange this they have

Answer 10

jobs would go or they might stay after we the people of usa create our own money heck we just might start using rocks but wat probaly would happen is that life would go a wall for a few months or years