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Any value of UBI higher than 0 creates positive feedback loop: 1. government announces UBI 2. retailers, in anticipation of higher demand raise prices. 3. UB
by mamon 8y ago
Any value of UBI higher than 0 creates positive feedback loop:
1. government announces UBI
2. retailers, in anticipation of higher demand raise prices.
3. UBI beneficiaries see that they cannot buy as many goods as they want/need so they start demanding more money.
4. government see that they have more tax revenue due to higher retail sales (and the price raise from step 2) so it easily agrees to increase UBI amount.
5. go to step 2.
- fulafel 8y agoDo you think other financial aid formsfunded with tax money have this effect too? Or do you think UBI is qualitatively different because all taxpayers get it? I think you can be cured of the latter if you consider the fact that it's exactly equivalent to a negative income tax system.