5 ms·

Does that appear to be the case for the millions of people already receiving checks from the government?

by tengbretson 6y ago

nickthemagicman 6y ago
They don't understand redistribution vs inflation.
- RhysU 6y ago
  You've made this comment a lot in this thread. Suppose, for the sake of argument, UBI is implemented by the pure redistribution of wealth. No debt. No draining some capital reserve. Steady state redistribution. The act of distributing wealth to new people will shift demand in accordance with their demands. The newly UBI-ed masses won't be chasing the same rich-men goods as the rich men they soaked. The aggregate demand for not-rich-man goods will go up. So then those prices will go up. When the price for goods goes up without any increase in their quality, all else constant, that's inflation. At least by my layman's understanding. Why do you keep insisting that redistribution won't cause inflation?
  - nickthemagicman 6y ago
    Youre only looking at demand. There's another factor you're missing. SUPPLY and demand. If supply is static then yes, you are correct. But the supply for most 'not-rich-man goods' is made of commodities and is highly scalable and economic productivity will increase to match demand. And the increased productivity/value from the economy will have a deflationary aspect that you're not considering. This as a side effect also creates jobs and just generally increases the well being of the middle class and poor as a whole not just from the UBI. This will also distribute the population throughout the country more evenly so rent prices will go down as well... as people don't have to live in certain areas that happen to have jobs and can afford to innovate in B.F.E without the risk of becoming homeless if they fail which in aggregate will have some businesses succeed and stimulate those areas of the country.
    - RhysU 6y ago
      > economic productivity will increase to match demand True, but not instantaneously. The lag there is inflation at work. > But the supply for most 'not-rich-man goods' is made of commodities... Desireable housing near good jobs, high quality education, effective health care, child care in a regulatory environment, convenient transportation. These are not highly elastic. That's a lot of most people's expenses if they can be afforded. > And the increased productivity/value from the economy... How does paying people not to work increase available labor to apply to productive endeavors? > ...have a deflationary aspect that you're not considering. How does handing someone $5 increase the intrinsic value of any good?
      - nickthemagicman 6y ago
        UBI is meant to replace government safety nets. It's meant for survival, not for education healthcare and all those other things you mentioned. >How does handing someone $5 increase the intrinsic value of any good? You should go back and re-read what I wrote. Might be beneficial to check out an econ 101 book so you kind of understand deflation as well as inflation, and just generally how the value of money works.

Does that appear to be the case for the millions of people already receiving checks from the government?

nickthemagicman 6y ago

They don't understand redistribution vs inflation.

RhysU 6y ago
You've made this comment a lot in this thread. Suppose, for the sake of argument, UBI is implemented by the pure redistribution of wealth. No debt. No draining some capital reserve. Steady state redistribution. The act of distributing wealth to new people will shift demand in accordance with their demands. The newly UBI-ed masses won't be chasing the same rich-men goods as the rich men they soaked. The aggregate demand for not-rich-man goods will go up. So then those prices will go up. When the price for goods goes up without any increase in their quality, all else constant, that's inflation. At least by my layman's understanding. Why do you keep insisting that redistribution won't cause inflation?
- nickthemagicman 6y ago
  Youre only looking at demand. There's another factor you're missing. SUPPLY and demand. If supply is static then yes, you are correct. But the supply for most 'not-rich-man goods' is made of commodities and is highly scalable and economic productivity will increase to match demand. And the increased productivity/value from the economy will have a deflationary aspect that you're not considering. This as a side effect also creates jobs and just generally increases the well being of the middle class and poor as a whole not just from the UBI. This will also distribute the population throughout the country more evenly so rent prices will go down as well... as people don't have to live in certain areas that happen to have jobs and can afford to innovate in B.F.E without the risk of becoming homeless if they fail which in aggregate will have some businesses succeed and stimulate those areas of the country.
  - RhysU 6y ago
    > economic productivity will increase to match demand True, but not instantaneously. The lag there is inflation at work. > But the supply for most 'not-rich-man goods' is made of commodities... Desireable housing near good jobs, high quality education, effective health care, child care in a regulatory environment, convenient transportation. These are not highly elastic. That's a lot of most people's expenses if they can be afforded. > And the increased productivity/value from the economy... How does paying people not to work increase available labor to apply to productive endeavors? > ...have a deflationary aspect that you're not considering. How does handing someone $5 increase the intrinsic value of any good?
    - nickthemagicman 6y ago
      UBI is meant to replace government safety nets. It's meant for survival, not for education healthcare and all those other things you mentioned. >How does handing someone $5 increase the intrinsic value of any good? You should go back and re-read what I wrote. Might be beneficial to check out an econ 101 book so you kind of understand deflation as well as inflation, and just generally how the value of money works.