Agree on the knock-on effects. My prediction is deflation. Money will be worth more and more. As a consequence governments will have to step in to ensure inflation(with e.g. universal income), otherwise the economy stops.

But honestly I'm not sure this will be enough for people to spend on e.g. restaurants or activities or oh I don't know, children. I think this will imply a freezing or even stepping back on the Maslow pyramid, the majority of people consolidating in the middle.

What I'm mostly concerned about is not even economic, it's psychological. With nothing to do, people will not have purpose, and bored people are a gunpowder keg.

> What I'm mostly concerned about is not even economic, it's psychological. With nothing to do, people will not have purpose, and bored people are a gunpowder keg.

I'm not so sure about this one. The powerful in a society like the one you describe would surely know about that potential powderkeg and supply ample cheap entertainment to dull the edge. Then we'll have a society of mostly dull, idle, useless people with no purpose.

That's even more dystopian than your scenario, if you ask me.