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Today’s stimulus is a perfect example of UBI. 33.8% of all personal income in the last year came from the government. It results in everyone having more money t

Today’s stimulus is a perfect example of UBI. 33.8% of all personal income in the last year came from the government. It results in everyone having more money to spend but eventually as we see now shortages in just about everything, those shortages cause prices to rise and soon even though everyone has more money, everything costs more. The market settles prices in the end and trying to control the market by pumping cash only works for a short term. Take an example of say Las Vegas limit surge pricing limit for Uber’s. They said we don’t want Uber’s to be expensive so we’ll limit how much they can charge. So what happens, prices are low, great! But.... now drivers don’t make what they are worth and no one wants to drive uber. Now uber in Vegas wait times can be hours longs making the service essentially useless. Many would gladly pay more to actually get an Uber, but they can’t even if they wanted to. Giving everyone more money is the same as trying to lower the price of everything. It just can’t happen from an economic standpoint without unintended consequences.

danShumway 5y ago
> Today’s stimulus is a perfect example of UBI. > eventually as we see now shortages in just about everything This is a pretty big jump in logic. We've had a ransomware account that shut down a gas pipeline, we've had mass business shutdowns in multiple countries that affected the entire economy, we've had a large shipping block. It's pretty hard to blame the current chip shortage on the stimulus. I do not understand how people get so wildly confident about this stuff whenever UBI comes up. I would not be so confident to claim that supply shortages for materials/foods from other countries are being caused by a stimulus in the US, particularly during a period where our government policy was to specifically tell people that the responsible, social thing to do not to go into their jobs.
- smaryjerry 5y ago
  I’m not even talking about gas. I’m taking about chips, lumber, chicken, and much much more. All of them are having shortages and it has nothing to do with randomware but it is important to recognize that using stimulus is like using a budget, spending money in one spot means you can’t spend it in another, while we have gone all in on the pandemic we forget that other problems like ransomware and whatever else comes up still need to be addressed and take money to correct.
  - danShumway 5y ago
    > All of them are having shortages and it has nothing to do with randomware But also it's relatively unlikely that any of them have anything to do with the US stimulus. We import most of our chips. I'm not even saying that shipping/factory shutdowns are the sole cause of inflation right now. But it's really overconfident to say that the stimulus is the cause of all of those increases, I think that's pretty unlikely to be the largest cause. It's just a pretty large oversimplification -- do people seriously believe that if a stimulus hadn't happened that shipping costs would have gone down during a pandemic?

danShumway 5y ago

> Today’s stimulus is a perfect example of UBI. > eventually as we see now shortages in just about everything This is a pretty big jump in logic. We've had a ransomware account that shut down a gas pipeline, we've had mass business shutdowns in multiple countries that affected the entire economy, we've had a large shipping block. It's pretty hard to blame the current chip shortage on the stimulus. I do not understand how people get so wildly confident about this stuff whenever UBI comes up. I would not be so confident to claim that supply shortages for materials/foods from other countries are being caused by a stimulus in the US, particularly during a period where our government policy was to specifically tell people that the responsible, social thing to do not to go into their jobs.

smaryjerry 5y ago
I’m not even talking about gas. I’m taking about chips, lumber, chicken, and much much more. All of them are having shortages and it has nothing to do with randomware but it is important to recognize that using stimulus is like using a budget, spending money in one spot means you can’t spend it in another, while we have gone all in on the pandemic we forget that other problems like ransomware and whatever else comes up still need to be addressed and take money to correct.
- danShumway 5y ago
  > All of them are having shortages and it has nothing to do with randomware But also it's relatively unlikely that any of them have anything to do with the US stimulus. We import most of our chips. I'm not even saying that shipping/factory shutdowns are the sole cause of inflation right now. But it's really overconfident to say that the stimulus is the cause of all of those increases, I think that's pretty unlikely to be the largest cause. It's just a pretty large oversimplification -- do people seriously believe that if a stimulus hadn't happened that shipping costs would have gone down during a pandemic?