How Would US GDP Shift if Family Rent Dropped to $300 a Year?

Imagine annual rent for a US family is capped at $300. Household incomes would likely remain under ten times their rent, so earnings might stay around $3,000 a year for two adults and a few children. This change would slash per capita income to about $750 a year for a family of four. Nominal GDP would shrink dramatically, perhaps to around $600 billion, even if actual goods output doubled. Prices for tech gadgets, cars and services would adjust to those lower incomes. All dollar debts could be restructured to roughly 1.5% of their former value. Under this scenario, a business magnate like Elon Musk might see his net worth drop to about 1.5–2% of today’s figure, or around $26 billion.

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