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Money will eventually circulate everywhere, but it's a matter of efficiency. This is an immense simplification, but to illustrate the intuition, consider 2 opti
by Aunche 7y ago
Money will eventually circulate everywhere, but it's a matter of efficiency. This is an immense simplification, but to illustrate the intuition, consider 2 options:
1. Apple spends $10 million dollars to build a factory in a developing country. This creates 2,000 jobs over a couple years. These people can finally afford to see a doctor and heat up their homes during the winter.
2. Apple gets taxed $10 million that funds 1000 people's UBI. Their lives are somewhat less stressful. There is a higher demand for Iphones, so Apple can charge a bit more money for them. After a decade, they are able to open an additional factory. However, within that decade, 100 people in that developing country died of a disease that would be easily cured with medicine had they had they been able to work at the factory 10 years ago.