4 ms·
With a high enough UBI they don't 'suddenly start charging you more than $4'; their cost of goods increases beyond $4 and they are forced to either do that or s
by esotericn 7y ago
With a high enough UBI they don't 'suddenly start charging you more than $4'; their cost of goods increases beyond $4 and they are forced to either do that or stop doing business.
As a trivial example - imagine that the UBI is set at the McD's full time wage.
Some nonzero number of people will stop working there, forcing McD to increase wages to maintain staff levels.
For those that do continue to work there, even if the McD wage remains constant, more money will be sloshing about in the local economy because they're suddenly earning twice as much. Anything scarce will increase in price (e.g. rental housing), as a first order effect at least, because at the bottom end of the market pricing is basically about allocation of scarcity.
FWIW I think this is a _good thing_. A business that relies on forms of indirect indentured servitude (e.g. the entire class of jobs that people work in order to eat as opposed to actively choosing them in some form) should only exist for as long as we need it to. If we can make an economy work without it, let's do it.