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That’s why I prefer negative income tax as a solution that disproportionately supports the lower class without universally raising the cost of living by the exa
by cheschire 7y ago
That’s why I prefer negative income tax as a solution that disproportionately supports the lower class without universally raising the cost of living by the exact amount of UBI nationwide.
- Retric 7y agoUBI does not create any money and thus has zero long term impact on inflation. Remember even 2.5% inflation still means money is worth 1/2 as much every 30 years. That can only happen if either the economy is smaller every 30 years or new money is created every 30 years.
- gbear605 7y agoIt doesn’t as long as you’re financing it without using debt/printing new money
- Retric 7y agoDebt and printing money are two different things with very different impacts on inflation. Critically debt requires the money to already exist in circulation. Government bonds can act like currency, but can’t cycle endlessly. EX: Government in 2525 may need to borrow more money each day than currently exists, if they never print any money nobody can lend that much to them on a given day. PS: The velocity of money is one of those odd things that seems irrelevant in simple models but turns out to be really critical.
- fwip 7y agoIf you pay for UBI with a progressive tax, it works out basically the same.