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Congrats, and good luck. I'm personally against the idea of UBI because I don't believe it works at a large scale because all it will do is create inflation, b

Congrats, and good luck. I'm personally against the idea of UBI because I don't believe it works at a large scale because all it will do is create inflation, but I'm genuinely curious to see me proven wrong. That's the whole point of experimentation, so I fully support this.

ttoinou 9y ago
Easy. Delete cash and crypto currencies and let men of the state set prices. Poof, no inflation.
shkkmo 9y ago
> I don't believe it works at a large scale because all it will do is create inflation. Inflation is not necessarily a bad thing, high inflation and low inflation (or deflation) are both bad. (Specifically, it is expectations of high or low inflation are bad as they tend to compound into further increases or decreases in inflation.) This is why the Fed in the US targets a base inflation rate of 2%, the expectation of a stable rate of inflation help keep that inflation rate stable and support economic activity. While limiting inflation used to be the primary concern of monetary policy, we have seen more and more effort being put into limiting deflation and maintaining a healthy level of inflation. Any increase in inflation due to UBI would be caused by UBI causing demand growth to outstrip supply growth. Yet boosting demand is exactly the tool we need to deal with economic downturns. I think the path to introducing UBI is to legally couple UBI increases with slightly lesser minimum wage, unemployment and welfare decreases. We then give the Fed the power to trigger this as needed to stimulate the economy when needed and avoid deflation. I think it is a positive sign that the anti-UBI skeptics seem to be shifting away from the "but people will be lazy" argument to the "but it will cause inflation" argument.
- pfarnsworth 9y ago
  Inflation would cause the recipients of UBI who need it most to suffer the most. Unless we increase UBI, which would cause more inflation, and this then becomes positive feedback loop. As a homeowner with a substantial but fixed-rate mortgage and a well-paying job, I would LOVE to see high inflation.

ttoinou 9y ago

Easy. Delete cash and crypto currencies and let men of the state set prices. Poof, no inflation.

shkkmo 9y ago

> I don't believe it works at a large scale because all it will do is create inflation. Inflation is not necessarily a bad thing, high inflation and low inflation (or deflation) are both bad. (Specifically, it is expectations of high or low inflation are bad as they tend to compound into further increases or decreases in inflation.) This is why the Fed in the US targets a base inflation rate of 2%, the expectation of a stable rate of inflation help keep that inflation rate stable and support economic activity. While limiting inflation used to be the primary concern of monetary policy, we have seen more and more effort being put into limiting deflation and maintaining a healthy level of inflation. Any increase in inflation due to UBI would be caused by UBI causing demand growth to outstrip supply growth. Yet boosting demand is exactly the tool we need to deal with economic downturns. I think the path to introducing UBI is to legally couple UBI increases with slightly lesser minimum wage, unemployment and welfare decreases. We then give the Fed the power to trigger this as needed to stimulate the economy when needed and avoid deflation. I think it is a positive sign that the anti-UBI skeptics seem to be shifting away from the "but people will be lazy" argument to the "but it will cause inflation" argument.

pfarnsworth 9y ago
Inflation would cause the recipients of UBI who need it most to suffer the most. Unless we increase UBI, which would cause more inflation, and this then becomes positive feedback loop. As a homeowner with a substantial but fixed-rate mortgage and a well-paying job, I would LOVE to see high inflation.