4 ms·
> It’s like nobody understands supply and demand Folks that use supply and demand principles to argue against UBI don't seem to understand themselves. If ever
by speedplane 7y ago
> It’s like nobody understands supply and demand
Folks that use supply and demand principles to argue against UBI don't seem to understand themselves.
If everyone is given $1,000/mo, it does not necessarily follow that living costs will also increase by $1000/mo. For that to happen, the additional $1000/mo would need to actually increase everyone's demand for services, which is generally not the case. Having more money generally does not make you want something more, it just makes it easier to afford it. If more people can afford something and start purchasing it in greater numbers, then yes, the price will increase, but they are also getting something the thing of value in return.
Put another way, giving everyone $1000 will likely increase prices, but the increased prices will be less than $1000.
- erik_seaberg 7y agoSupply and demand break down where increasing supply is practically illegal. As long as there's a severe shortage of housing, landlords can demand as much as the top nth percentile of renters are able to pay, because there is no competing landlord who will take a lower price. If this somehow doesn't drain California dry, it'll be interesting if this enables lots of frustrated marginally-employed people to move to areas with vacant housing (and no jobs, but so what?)