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Or the wages go up for these kinds of jobs, leading to inflation, meaning basic income will not be enough to survive.
by ma2rten 10y ago
Or the wages go up for these kinds of jobs, leading to inflation, meaning basic income will not be enough to survive.
- mrfusion 10y agoIt would only lead to inflation if those increased wages were paid via increasing the money supply.
- deelowe 10y agoHuh? Increasing wages doesn't cause inflation.
- criddell 10y agoIt can. It depends on the source of the money. If the government just prints more money to increase everybody's bottom line, then it would be an inflationary pressure for sure.
- deelowe 10y agoNot really. In the situation you've described, the printing of money is what causes inflation. Wages may change as a result of that, but then again, they may not. What happens with wages depends on other economic factors.
- criddell 10y ago> the printing of money is what causes inflation Not really. Demand outstripping supply is what causes inflation.
- deelowe 10y agoFair enough.
- sharemywin 10y agoAnd if someone chooses to work less supply is constrained = UBI. if someone chooses to work the same demand goes up = UBI. either way demand is increasing and supply is decreasing. leading to higher prices.
- criddell 10y agoExcept when people are working less because robots are doing the job. Now people are working less and the supply is unchanged.
- logfromblammo 10y agoCurrency is the lubricant for the trade economy, not the fuel for its engine. You cannot create more goods and services by printing more money. In general, a person that holds more currency reserves exerts greater command over future production. So by continually taking money away from rich people and giving it to poor people, in the long run, your economy will tend to produce more of the things poor people want, and less of the things rich people want. Inflation will be a big problem for UBI at first, but prices should eventually stabilize--perhaps after 20 years have passed. Good luck protecting such a system politically for that long, though. In my opinion, you really can't force a work-for-pay, pay-for-goods economy to support a welfare state. It just immediately routes around the damage. You have to establish a parallel work-by-command, goods-by-rationing economy. That's a whole lot easier to do with robotic workers performing all the difficult and nasty work. It might not collapse due to corruption and shortages this time around. Maybe.
- simonh 10y agoIf BI leads to near-full employment, by eliminating poverty traps and subsidizing unskilled jobs, then that's not necessarily a problem. BI doesn't mean entirely dropping all other forms of contingent social support, such as child care allowances, pensions and disability benefits, so if people genuinely have a reason they cannot work that can still be covered.