18 ms·

I never understood this but I'm still open minded. How would it not just lead to inflation? You're saying it actually has but I also think our circumstances rig

• gruez 5y ago
  note that he didn't say all prices would increase, just rent/housing. This makes sense, because unlike TVs and milk, the supply for housing isn't very elastic (due to NIMBY reasons), so pumping more money isn't going to get us more supply, only higher prices.
  • totony 5y ago
    Higher price on lower end housing, but that incentivises building more lower end housing (since higher end housing is more elastic and won't have as big of a markup). EDIT: actually, thinking more about this I don't think lower end housing will see such an increase, since most people already have a home. You'll certainly see a rise in price of lower end housing, but it won't offset UBI, since I doubt people will just take ubi to put it into their housing
• deleted 5y ago
  [deleted]
• totony 5y ago
  One of the direct consequences of UBI is inflation IMO. Of course things are going to be more expensive if we give everyone money. That doesn't mean poor people won't be better off. If your food costs 20% more but you have 200% the money, that's a good thing. UBI is like printing money, yes you have inflation, but the money is still useful. Inflation won't eat the whole UBI (probably), because there's still supply and demande that other revenue generate. E.g. if I pay 20% of my income for food and UBI doesn't affect my income much, I won't be inclined to increase my spending on food by a big %.