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If economy goes down and you keep printing money not backed by anything, the value of the money goes down and you end up with hyperinflation like in Venezuela o
by chr1 7y ago
If economy goes down and you keep printing money not backed by anything, the value of the money goes down and you end up with hyperinflation like in Venezuela or Zimbabwe.
So that's a very useful feedback loop: if too many people decide that they want to do art instead of driving trucks, the total income tax will go down, decreasing ubi and making more people to work. If someone invents self driving trucks and starts to get huge profits, ubi goes up, helping the drivers to live while they learn new useful skill.
- gizmo686 7y agoOver the long term, maybe. Over the short term, recessions are still not going to be caused by changes in aggregate behavior; they will continue to be caused by business cycles, so we want to have counter-cyclic forces.
- chr1 7y agoI believe with fixed 20k UBI, that is increasing when income tax decreases, the hyperinflation would happen very quickly (1-2 year) much quicker than the business cycles. But even if i am wrong it is better to start with small and conservative UBI scheme to be safe.