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Yes, UBI would likely contribute to some inflation -- a little bit of inflation is good, necessary, and unavoidable. It would also act as a massive stimulus to
by superstructBase 8y ago
Yes, UBI would likely contribute to some inflation -- a little bit of inflation is good, necessary, and unavoidable. It would also act as a massive stimulus to the economy, while also empowering economically-disenfranchised people to enter into the market, from which they are barred from participating in without money.
One way to fund a UBI would be through a value-added tax, which would be collected at every stage of production where money is exchanged.
- sneak 8y agoInflation is an unvoted and unregulated tax; being a flat tax it is regressive and it vastly disproportionately (negatively) affects the poor. It is not good, nor a benefit.
- superstructBase 8y agoInflation is not a tax: there is no government entity that collects inflation payments. Not having any money is worse for the poor than having a basic income, even if there is inflation. The market has no direct incentive to serve those without money. The alleviation of widespread human suffering due to poverty and the massive increase in the general utility of the market to humans clearly makes UBI the moral choice. Inflation does benefit debtors: with money being cheaper, loans are easier to pay off.
- sneak 8y ago> Inflation is not a tax: there is no government entity that collects inflation payments Quite the opposite; when new money enters circulation it is spent (by those doing the printing) at the pre-inflation value of the notes.