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If it's paid for by taxes or borrowing there won't be any net inflationary effect because the money going to the recipients comes from elsewhere in the economy.
by Symmetry 10y ago
If it's paid for by taxes or borrowing there won't be any net inflationary effect because the money going to the recipients comes from elsewhere in the economy. The new stuff that poorer people are now buying is payed for by the creation of less stuff for rich people. Economies aren't perfectly flexible so there will be some increase in the price of good used by poor people in relation to the goods used by rich people but that effect won't be huge. Of course, if an UBI drastically reduces employment that's a whole 'nother story but people are doing these pilots to figure that out.