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One thing I haven't seen addressed regarding Guaranteed Income: what sort of assurance is there that, when everyone has a guaranteed amount of income coming in
by abovemypaygrade 9y ago
One thing I haven't seen addressed regarding Guaranteed Income: what sort of assurance is there that, when everyone has a guaranteed amount of income coming in, the market for necessary items (rent, for example) won't inflate to account for this, in order to maximize revenue?
A similar corollary (not perfect, but should serve to illustrate) would seem to be student loans - with a federal guarantee, and no way to get out of them through bankruptcy, the cost of education has far exceeded normal inflation. I can imagine similar things happening with Guaranteed Income.
- cryptonector 9y agoGreat question. My take is that we already manage to supply basic needs for 99% of the population, so inflation doesn't seem likely. But also, the idea is that by eliminating the welfare trap more people will work to supplement that income, so we can expect more production and more demand in general -- any inflation for basic goods should tend to increase the pressure to work to supplement the basic income, which would be good. That said, it almost certainly is the case that ever-increasing student loan guarantees caused the massive tertiary education inflation of the past three decades. Which is why yours is such a good question to ask here.