In the 2017 movie Downsizing, a chunk of the population decides to reduce their body size to just a few inches. What would be the consequences of this on the economy? I'd like to know chronologically what the important steps would be until the economy goes back to some stability.
In my scenario, the proportion of small vs big people in the country stays stable, let's say 50% of the population decide to Downsize, 50% stay normal-sized. I am considering an essentially free economy (let's say the current day US like in the movie) where trade between small and big people is initially not restricted, but could be in the form of laws or taxes later on.
(I do not have any background in economics, please make it as lay audience as possible!)