3 ms·

> with UBI even the landlords in the middle of nowhere can demand higher rent If that was happen it would only encourage people on UBI to buy the cheapest hous

> with UBI even the landlords in the middle of nowhere can demand higher rent If that was happen it would only encourage people on UBI to buy the cheapest houses or by land to build. Not being bound to a location, they would be able to do so easily. > All the UBI will do is it will raise the nominal prices of everything [...] inflation eats it all. Plain false. UBI does not create new money out of nowhere.

988747 5y ago
Of course UBI will create new money - how else are you going to finance it? Giving each adult American $1000 per month would cost at least $2.5 trillion. Let's assume that UBI replaces all other Social Security spending - that's currently $1.2T, so you are still $1.3T short. You cannot collect that much in new taxes. Even assuming that you somehow manage to finance UBI with tax raises alone think about what you'll be doing: you would be moving money from the rich to the poor, which sounds good in theory, until you realize that rich people and corporations keep their money in financial assets. Now, the reason why all the FED money printing so far caused only mild inflation is because the money flew to financial markets. If you use taxes to redirect it to common people then you are doubly screwing them: you are crashing stock markets, ruining their 401(k) savings, and at the same time causing price inflation of everyday things.
- goodpoint 5y ago
  > Of course UBI will create new money Not at all. In a lot of countries it's not possible to arbitrarily create money out of nowhere. Most proposed UBI implementation replace the existing welfare and a plethora of financial aids, programs and tax reliefs, leaving the overall tax rates roughly similar to the existing one. https://en.wikipedia.org/wiki/Universal_basic_income https://en.wikipedia.org/wiki/Universal_basic_income

3 ms·

> with UBI even the landlords in the middle of nowhere can demand higher rent If that was happen it would only encourage people on UBI to buy the cheapest hous

by goodpoint 5y ago

988747 5y ago
Of course UBI will create new money - how else are you going to finance it? Giving each adult American $1000 per month would cost at least $2.5 trillion. Let's assume that UBI replaces all other Social Security spending - that's currently $1.2T, so you are still $1.3T short. You cannot collect that much in new taxes. Even assuming that you somehow manage to finance UBI with tax raises alone think about what you'll be doing: you would be moving money from the rich to the poor, which sounds good in theory, until you realize that rich people and corporations keep their money in financial assets. Now, the reason why all the FED money printing so far caused only mild inflation is because the money flew to financial markets. If you use taxes to redirect it to common people then you are doubly screwing them: you are crashing stock markets, ruining their 401(k) savings, and at the same time causing price inflation of everyday things.
- goodpoint 5y ago
  > Of course UBI will create new money Not at all. In a lot of countries it's not possible to arbitrarily create money out of nowhere. Most proposed UBI implementation replace the existing welfare and a plethora of financial aids, programs and tax reliefs, leaving the overall tax rates roughly similar to the existing one. https://en.wikipedia.org/wiki/Universal_basic_income https://en.wikipedia.org/wiki/Universal_basic_income