This is exactly correct, and your objections apply at both a microeconomic and macroeconomic level. UBI almost certainly would create widespread and profound p

This is exactly correct, and your objections apply at both a microeconomic and macroeconomic level. UBI almost certainly would create widespread and profound price distortions. Maybe a similar model would be what's happened with college tuition. The government set out to make it "affordable" for everyone with demand-side policies, and the supply side of the market responded by absorbing the additional spending capacity by raising tuition geometrically.