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This is exactly what the problem with UBI is. Companies will know that you have an extra $X so they may be able to offer less salary (unless we are talking abou
by ponsin 7y ago
This is exactly what the problem with UBI is. Companies will know that you have an extra $X so they may be able to offer less salary (unless we are talking about a huge UBI where people won't have to work if they don't want to). However, the risk is much more realistic with landlords. Since renting is basically a bidding war, the only difference with everyone have $X extra is that the final "sale" will be $X more
- boublepop 7y agoSo your saying that tax reductions and lowering the interest also have no economic effects because every last penny will be simultaneously be deducted from salary and go fully to increased rent/housing sales?
- ponsin 7y agoThat is most certainly not what I am saying
- fastball 7y agoGP has a point though – why doesn't the same logic apply? If I am an employer, I know your pay grade. Therefore, I know how tax cuts affect you. So if there is a cut in tax rates, why not just deduct the equivalent value you would've kept as extra due to the cut from your paycheck? If rentals are being priced purely based on "what can renters afford", then your problem is with the housing market itself, not with UBI or anything else. Obviously UBI won't ameliorate a situation where housing is priced like that – in that case you would also need to ensure there is a larger supply of housing to make the market actually competitive, but it isn't a problem with UBI, it's a problem with housing.