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I'm not an economist so I would really appreciate insight into a thought I've had about UBI. Let's say your rent is $1,000 per month, and the government began a

I'm not an economist so I would really appreciate insight into a thought I've had about UBI. Let's say your rent is $1,000 per month, and the government began a universal basic income program of $500 per month for everyone. If your landlord raises your rent by $500, are you not in the same position as you were before without the UBI? I ask this because my argument with a UBI is that it will create more money in the system, true, but there's no limitation that prevents landlords and merchants from also raising their prices with the justification that they know you have it. So to take a stab at a question: Would a UBI lead to inflation?

imtringued 6y ago
>If your landlord raises your rent by $500, are you not in the same position as you were before without the UBI? If your landlord raises your rent then it will be more profitable to build housing which then allows construction companies to employ more workers. Of course, the problem with this is that some cities have banned new construction but that's a problem with the specific city, not with the idea itself. Yes, it would drive inflation and moderate inflation drives jobs growth so everyone would benefit, except those whose net worth is invested in unproductive companies or assets.
chaganated 6y ago
It's even worse than that, since inflation hits the poors the hardest, while the capital and professional classes have skills/assets that weather inflation quite nicely. Hard to imagine a more efficient way of neutering the poors politically and economically.
aww_dang 6y ago
>are you not in the same position as you were before without the UBI? No, now you are dependent upon the government to pay for your inflated rent. Naturally, when $500 is eaten up by price inflation, UBI proponents will demand a commensurate increase. It is easy to see how this could spiral into total dependence.

imtringued 6y ago

>If your landlord raises your rent by $500, are you not in the same position as you were before without the UBI? If your landlord raises your rent then it will be more profitable to build housing which then allows construction companies to employ more workers. Of course, the problem with this is that some cities have banned new construction but that's a problem with the specific city, not with the idea itself. Yes, it would drive inflation and moderate inflation drives jobs growth so everyone would benefit, except those whose net worth is invested in unproductive companies or assets.

chaganated 6y ago

It's even worse than that, since inflation hits the poors the hardest, while the capital and professional classes have skills/assets that weather inflation quite nicely. Hard to imagine a more efficient way of neutering the poors politically and economically.

aww_dang 6y ago

>are you not in the same position as you were before without the UBI? No, now you are dependent upon the government to pay for your inflated rent. Naturally, when $500 is eaten up by price inflation, UBI proponents will demand a commensurate increase. It is easy to see how this could spiral into total dependence.