The system would self adjust. If people spent more on travel, travel costs would go higher, even as competition there increased. If people spent more on experience-oriented stuff, that industry would get bigger. If people just spent less, salaries would go lower due to lower demand, not to mention smaller revenues for companies in general (in terms of absolute amounts).

One thing I've witnessed time and time again is that, a lot of times, the price of an item is based on what the market will pay for it.