> Why on Earth do you think producers will be unable to raise prices? One of the cool things about basic income is that because it distributes the incomes even

> Why on Earth do you think producers will be unable to raise prices? One of the cool things about basic income is that because it distributes the incomes evenly, it flattens out the demand curve or increases the price elasticity of demand. This means that (even absent competition) if producers raise prices, they'll lose customers. Conversely, if they lower prices they'll get more customers. A basic income creates an incentive for producers to keep their prices low. This incentive is higher than it would be without the basic income. Another way to think about it is that basic income, doesn't give people more money to spend on goods they're already buying. Instead, it gives money to more people to spend on goods they wouldn't have bought before. It's the difference between giving money primarily to people who already have it and giving money to people who don't. Basic income allows the economy to start activating previously unused productive capacity that was already available. Of course this doesn't work for goods whose production is being constrained by resource limits. For example, under basic income, you might see the price of meat rise, which would cause people to buy less meat and substitute other types of food. We have the capacity to feed the world, but we don't necessarily have the capacity to feed everyone meat 24/7.