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Ok, this is another argument for inflation depending on the reduction of work incentives after basic income. So lower amount of output is distributed among sam
by enugu 10y ago
Ok, this is another argument for inflation depending on the reduction of work incentives after basic income. So lower amount of output is distributed among same number of people causing inflation.
But for making this argument, you will have to explain why increasing wages doesnt have the same effect as supplementing labour income with an extra stipend. After all, we are talking about basic income, ie a low amount. In this case it is even more modest (my guess is around 50$ or so a month).
To make this argument in general, you would need some idea of how large this work disincentive effect is. Remember there are many positive effects as well - the security of income means that someone doesnt need to do drastic stuff like selling off capital(for instance, cutting short training and taking up a job immediately) in bad times or becoming indebted due to basic necessities.