I doubt the economy will collapse but you will see massive layoffs.
Many of the wealthiest people of the US officially have zero income and pay zero taxes. They learned they want to be paid in stocks and stock options. When they need cash, they found it was easy to get loans using their stocks as collateral. In other words, if the stock market permanently tanks, it will affect the top 0.1% and prevent them from doing their current tax avoidance scheme.
For most people, they will probably get laid off, as corporations' seemingly only answer to a falling stock price is to reduce get head count. In Japan's case with their stock market in the toilet for the past thirty years, it led to a bi-furcated economy. The lucky with regular jobs with full benefits; the unlucky with gig jobs with no benefits.
Many of the wealthiest people of the US officially have zero income and pay zero taxes. They learned they want to be paid in stocks and stock options. When they need cash, they found it was easy to get loans using their stocks as collateral. In other words, if the stock market permanently tanks, it will affect the top 0.1% and prevent them from doing their current tax avoidance scheme.
For most people, they will probably get laid off, as corporations' seemingly only answer to a falling stock price is to reduce get head count. In Japan's case with their stock market in the toilet for the past thirty years, it led to a bi-furcated economy. The lucky with regular jobs with full benefits; the unlucky with gig jobs with no benefits.