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Alternatively, UBI would provide a new income stream to literally everyone, increasing everyone's purchasing power. In a pure supply/demand scenario, the equili

Alternatively, UBI would provide a new income stream to literally everyone, increasing everyone's purchasing power. In a pure supply/demand scenario, the equilibrium price of essentially anything will increase accordingly, i.e. inflation. It's a fair point that UBI would result in some shift in market dynamic. But ultimately, most people will still want to get a job to supplement the UBI income, and high demand areas will remain high demand.

stormbrew 5y ago
Inflation isn't that simple. Sure, if you print a huge wad of money and give it out to everyone (ie. increase the money supply) then you'll get inflation, but that's not generally how UBI proponents intend it to work. The other side of it is increasing taxes on the other end of the progressive spectrum to compensate, leaving the money supply (ideally) largely unchanged. Anyways, it'd still be better than quantitative easing, the current approach to keeping the economy running now that they can't lower reserve ratios or interest rates anymore, wherein (roughly) the government prints money to shove into the stock market so people who are already rich keep getting richer.