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He's saying that if everyone has extra money, then everyone can afford higher prices. Since they can afford higher prices, people will charge those higher pric
by ars 5y ago
He's saying that if everyone has extra money, then everyone can afford higher prices.
Since they can afford higher prices, people will charge those higher prices. And you are back where you started.
- bo1024 5y agoThat’s not how market prices are generally set. Competition and demand keep them low. It might happen the way you describe sometimes but it’s far from a guarantee.
- shukantpal 5y agoThen you can simply encourage competition to drive down prices lower.
- ars 5y agoYou'd think so, but history shows different. If everyone has the same extra money, prices go up to match. It's a type of inflation I guess.
- dragonwriter 5y ago> He's saying that if everyone has extra money, then everyone can afford higher prices. UBI only gives everyone extra money if it is unfunded; typical UBI proposals are funded by either increased progressive income taxes or cutting other spending (which produces income to the recipient), and so is (in first order effects) zero-sum. (Typically, it replaces rapid clawbacks from means testing with slow clawbacks by progressive tax increases.)