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What stops sellers from raising prices to the point that any meaningful gain in UBI is effectively zero?
by Dracophoenix 5y ago
What stops sellers from raising prices to the point that any meaningful gain in UBI is effectively zero?
- brimble 5y agoIf they could do that, why haven't they already?
- claudiulodro 5y agoWhy don't landlords currently figure out a tenant's salary and charge exactly that amount in rent? Competition will still exist in a UBI society.
- Dracophoenix 5y agoIn any transaction, there is no distinction between money obtained as UBI and money earned as salary. A landlord is will set his price to what he can obtain from the highest bidder regardless of source. UBI does not generate competition. It's a supplement. All it does is translate the supply curve rightwards. While UBI might stimulate demand in the short term, it doesn't fundamentally change the relationship. The eventual outcome of sustained UBI is an inflationary spiral.
- mcv 5y agoTo be truly effective, UBI needs to be directly linked to the basic costs of living, like food and rent. If those go up, so should UBI. Or as long as there is no UBI, minimum wage should follow those costs.
- Dracophoenix 5y agoEither if those scenarios just create an inflationary spiral.
- mcv 5y agoNot at all. It's a popular claim, but there are many factors for inflation, and money in the hands of the poor is hardly the most important one. Countries with extreme poverty still have inflation. Countries with little poverty can have low inflation.