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> Why would you expect inflation? All sane UBI proposals don't create money, they just move money from rich people to poor people. If UBI is funded via taxes o
by redahs 9y ago
> Why would you expect inflation? All sane UBI proposals don't create money, they just move money from rich people to poor people.
If UBI is funded via taxes on labor and its products (income and consumption taxes) then one should expect further inflation in housing prices, and ultimately the transfer of money from productive workers and entrepeneurs to unproductive landholders and mortgage lenders.
If you don't want this transfer to occur, then you need to fund it via a land value tax, which does not allow landholders to charge higher rent in proportion to increased public spending.
If you are funding UBI via increased taxes on income and consumption rather than land, then you run the risk of making the majority of people poorer if housing, rent, and mortgage costs increase faster than their UBI transfer payments increase.