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Can you briefly run through how this will engineer an inflationary spiral? With no information on the replacement ratio this offers vs existing social security
by Ntrails 11y ago
Can you briefly run through how this will engineer an inflationary spiral? With no information on the replacement ratio this offers vs existing social security costs, and no indication of how it would be funded in a full implementation I can't see the inevitability.
- _rpd 11y agoThe basics are that the price of inelastic goods (housing, food) will rise to absorb any disposable portion of basic income, resulting in calls for increased basic income (using "living wage" rhetoric) and a positive feedback loop. I'm assuming inelastic goods aren't price controlled (creates intolerable shortages) and that basic income does increase disposable income. There are revenue neutral versions of basic income sometimes proposed by conservatives - dismantle social security and distribute the proceeds - but I don't think those versions are what most advocates have in mind when they call for basic income.