This happens to varying levels during most economic crises. Basically it results in contraction of the economy as companies cut expenses, I.e. wages. Usually there is some consolidation so that fewer, stronger firms can survive the downturn.
The working class are a necessity until full automation is possible, at which point we will be genocided with kill bots. (except for the hottest of us who will remain sex slaves.)
There are a infinite amount of reindeer games the 1% can use to keep us floating precariously on the edge until said time… including UBI. The rules are made up, and fiat currency doesn’t matter.
Currency will still be used. Unless everyone starts to absolutely own nothing, there will be bartering with something other than a fancy note with a promise of value from your local government. For example, food has been a staple currency for as long as agriculture has been a thing.
I imagine they’d go under if they rely on the general public as their customer base. Companies that cater to the wealthy would probably grow. Companies are created and go bankrupt all the time, individuals in the owner class will win or lose but that won’t affect the broad distribution of power. If it gets really bad feudalism might come back.
Companies catering to the wealthy is already happening. The richest man in the world, Bernard Arnault, sells luxury goods. It used to be that selling products to the most amount of people was better, Ford, oil barrons, even Wal-Mart. Now money is made selling products to the wealthy. The growth in inequality of the last 50 years shows up in many ways today. Housing sizes are larger because builders need to sell to the wealthy instead of to the masses where margins on modest sized homes are smaller or non-existent.
I’d argue we’re already there. Once you hit zero it’s not like you zip out of existence. When everyone is poor and has no money, the rich get to hire you and pay you enough to buy their products and keep them comfortable. You’ll never make enough to get out of poverty because it’s designed to keep you there.
Poverty isn’t just about not having money, it’s about never making enough to get out of poverty. When you’re always living paycheck to paycheck, payday loan to payday loan - you’re screwed. The system will never let you out. You’re too profitable in that state to let out.
Think of the boot theory. If I only give you 10 bucks a year, you have to buy the 2 dollar boots every year that last only a year. The moment you made 11 dollars, you could buy the 5 dollar boot that lasts you a decade. The system incentivizes company’s to sell 2 dollar boots cause it makes them more money in the long run, and if the entire world agrees to never pay you more than 10 dollars a year, every company can make that much more money. That’s why your market value is not your fair pay.
The real reason poverty exists is because rich people need a slave class without being directly liable for owning them.
Based on what I’m seeing in the small business community around me…
Small businesses see less foot traffic, take out loans to survive, realize things aren’t picking back up due to a drop in general spending, a drop that businesses like this can’t weather but mega corps can
Small businesses close, go bankrupt, etc.
Eventually only mega corps left, it’ll become the only option to do or buy anything, and we’re all fucked
edit: At some point I hope we all realize we could stop fighting each other, have power in numbers, and eat the rich.