4 ms·

There's some evidence to suggest that this is what has happened with tuition rates due to the availability of student loans.

• ctdonath 11y ago
  Amazing how many people don't understand the concept of "supply and demand". Increase the availability of money, increasing demand, and the prices increase so long as supply can't keep up. This has been manifestly demonstrated by tuition, health care, mortgages, insurance, etc.
  • icebraining 11y ago
    That's true for student tuitions, but availability of money doesn't increase demand for a specific product/market, so if the prices in supply-constrained markets increase, some people will use that money for something else instead, reducing the demand pressure. Similarly, local minimum wage laws might be eaten by rent increases, since they're tied to those area and jobs. But a BI would make it much easier for people to move out, distributing the demand over cheaper areas.
  • bryanlarsen 11y ago
    Unless you're printing money, there's no increase in supply. You're changing the distribution so there are small localized effects but overall prices should remain constant. Some will go up, some go down, but the top rate stays the same.