Pro's and Con's of this idea to start a financial boom...?

Question

What if everything was cut in half except whatever you have in the bank?
1. Salary
2. Prices
That means that everything would still be at the same ratio. Your $15/hr job is now a $7.50/hr job, but your $1400 mortgage is now only $700 so now problem right?
I think this would make people increase in their spendind because they now effectivly have twice as much money in their savings/checking accounts. So that $20,000 car just came down to $10,000 and you can buy it now, and buy something else. If there are more people buying stuff, then more jobs should open up because companies will need to manufacture stuff quicker. What do you think? I need all the good and bad points....

Answer 1

For starters, someone else loaned you the $$$ for that mortgage (probably somebodys pension managers in reality) but now you only want to give back 1/2 of what you took from that person.
Their "savings", which is invested in a lot of mortgages, would tank and the old people would loose out. If you cut prices in 1/2 you automatically cut others bank accounts . . .
It is not 'magic tree" $$$$ , it is real , it came from some real people.

Answer 2

What you're proposing is to cut everything but assets, but that wouldn't work because the mortgage you just cut in half is the bank's asset, so it couldn't be cut in half. Also, what about consumer debt (like on credit cards)? You couldn't cut that, because it is the asset of the debtors. It would also drastically cut the ability of Americans to buy foreign goods and incapacitate international trade.

Sorry, it's pretty much an asinine idea all around.

Answer 3

The bad part is, Most people have no money in their chequing and savings account...they are living off their credit cards.

Answer 4

excellent idea, sorry story, at the end every one will stand on foot path, with no money.