4 ms·

> Things like basic food stuffs will get more expensive, because there will be more money chasing it. Rents will go up, since disproportionately more poor peopl

• notahacker 9y ago
  Do you think the fact people are renting property now is going to stop landlords putting the rent up when they know that their target market that's used to spending nearly all their income on rent now has a lot more to spend (and few more housing options than before)?
  • ansible 9y ago
    If poor people have income not tied to a specific location, I'm expecting that they're going to move to lower-cost locations, rather than stay in expensive urban areas. So I further would expect that this will overall depress rents in urban areas.
    • notahacker 9y ago
      Most poor people's work (or habits, or family and friends) tends to be very location sensitive...
    • prostoalex 9y ago
      > If poor people have income not tied to a specific location, I'm expecting that they're going to move to lower-cost locations, rather than stay in expensive urban areas. So why haven't we seen a massive exodus to Detroit or Mississippi? Outside of coastal areas US already tends to be affordable and accessible.
      • pg314 9y ago
        Because that is not where the jobs are. Unemployment is at 9.8 % in Detroit, 5.6% in Mississippi, compared to 4.7% nationwide (all numbers Dec 2016).
        • prostoalex 9y ago
          How would introduction of UBI result in job creation?
          • maxerickson 9y ago
            Without speaking to the net effect, a possible mechanism of job creation is increased demand for goods.
            • prostoalex 9y ago
              In economic model of the last century - sure. People would spend at their local milkman and butcher, who would in turn hire a local glassblower, who would spend some with local seamstress, who could finally afford the services of local blacksmith. In the modern economy an increased demand for goods benefits very select entities - mainly a Chinese manufacturer, a Danish shipper, and Seattle-based Amazon.com. There's some job creation to the effect that a UPS guy needs to be hired to deliver those goods, but middlemen are likely to be squeezed on margins, while the value creation is taking place abroad.
  • pg314 9y ago
    No. Market forces (and in some places rent controls) will stop them. If anything, I would expect rents to come down. Landlords do not have a monopoly, they compete with each other. So they can't simply raise prices. That's the supply side. On the demand side, people will be more mobile, since to survive, they are no longer bound as strongly to places with jobs. Demand in places with high rents will go down, and in places with low rents will go up. On top of that, more people will be able to afford to buy a house (getting a mortgage is much easier if you have a guaranteed stable income) instead of renting, causing demand for rental units to go down.