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There's a non-obvious danger for basic income: rent-seeking behavior. Landlords charge whatever the market will bear, so there's a huge risk of funneling money

There's a non-obvious danger for basic income: rent-seeking behavior. Landlords charge whatever the market will bear, so there's a huge risk of funneling money through the recipients without improving their quality of life. And it isn't just landlords that hold that kind of rentier position - universities, for instance, would also extract more out of their position as employment gatekeepers. Attacking rent-seeking behavior would likely have a bigger impact on the everyday lives of the poor. Land-value taxes are a good place to start.

donatj 11y ago
I think equally a problem with raising the minimum wage as well. If people make more money on average, I can now charge more for my goods with less balking. It would be illogical for me not to raise my prices. In the end quality of life stays the same. Asking people to be illogical is... illogical.
- ThrustVectoring 11y ago
  People can still shop around, which is a balancing economic force. What makes people balk isn't just how much money they have, but the competing prices in the market. Less competitive markets will react to GBI to a much greater extent. I'd expect mobile phone service, internet service, housing, education, and healthcare to raise prices in response to GBI. I wouldn't expect the price of rice, steel, concrete, or airplane tickets to change much.
  - donatj 11y ago
    > I wouldn't expect the price of rice, steel, concrete, or airplane tickets to change much. Not at first, but the price of everything is connected eventually.
    - ThrustVectoring 11y ago
      My point is that price is the balancing point between selling for as much as you can find a buyer for, and buying for as little as you can find a seller for. Different goods have a different balance of power between buyers and sellers. Gasoline, for instance, has highly visible prices and little product differentiation. Choosing a different gas station is as easy as crossing the street. Customers will tolerate very little increase in price relative to the competition, so the price of gasoline is approximately equal to the cost of selling people gasoline.
1123581321 11y ago
Not only that, but if people are worth $x0,000 a year just for existing, there will be rent-seeking in the form of nursing homes that take your UBI, schools that take your UBI, organized crime that collects from people or possibly impersonates/imprisons people to collect their UBI by force. It's not safe to create a financial safety net without an interpersonal social safety net. People, especially those who can't easily protect themselves, need both.
aninhumer 11y ago
If landlords are able to charge whatever they like, then the market for housing is not competitive, and that's its own problem.

donatj 11y ago

I think equally a problem with raising the minimum wage as well. If people make more money on average, I can now charge more for my goods with less balking. It would be illogical for me not to raise my prices. In the end quality of life stays the same. Asking people to be illogical is... illogical.

ThrustVectoring 11y ago
People can still shop around, which is a balancing economic force. What makes people balk isn't just how much money they have, but the competing prices in the market. Less competitive markets will react to GBI to a much greater extent. I'd expect mobile phone service, internet service, housing, education, and healthcare to raise prices in response to GBI. I wouldn't expect the price of rice, steel, concrete, or airplane tickets to change much.
- donatj 11y ago
  > I wouldn't expect the price of rice, steel, concrete, or airplane tickets to change much. Not at first, but the price of everything is connected eventually.
  - ThrustVectoring 11y ago
    My point is that price is the balancing point between selling for as much as you can find a buyer for, and buying for as little as you can find a seller for. Different goods have a different balance of power between buyers and sellers. Gasoline, for instance, has highly visible prices and little product differentiation. Choosing a different gas station is as easy as crossing the street. Customers will tolerate very little increase in price relative to the competition, so the price of gasoline is approximately equal to the cost of selling people gasoline.

1123581321 11y ago

Not only that, but if people are worth $x0,000 a year just for existing, there will be rent-seeking in the form of nursing homes that take your UBI, schools that take your UBI, organized crime that collects from people or possibly impersonates/imprisons people to collect their UBI by force. It's not safe to create a financial safety net without an interpersonal social safety net. People, especially those who can't easily protect themselves, need both.

aninhumer 11y ago

If landlords are able to charge whatever they like, then the market for housing is not competitive, and that's its own problem.