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Was about to comment exactly this. The question makes no sense, whether or not inflation happens has nothing to do with universal basic income itself, it's a q

Was about to comment exactly this. The question makes no sense, whether or not inflation happens has nothing to do with universal basic income itself, it's a question of where the money comes from.

chaostheory 5y ago
The question is fine and it makes sense. The issue is that it’s a mistake to ignore reality around it. For example, death penalty proponents tend to ignore the financial cost, which is being increased due to litigation from opponents of the death penalty. They can’t wish away anti-death penalty lawyers doing pro-bono work, or pretend that they don’t exist. In a similar fashion, UBI proponents will ignore the likelihood that the government will likely fund the program by printing more money. The other reality being ignored is that the supply and availability of goods doesn’t change. What happens with more demand for those goods? Prices rise.
trgn 5y ago
It might not be that simple. Even if UBI is funded by taxes, UBI would be a wealth redistribution, increasing money on the lower end, generally pushing up demand for goods and services that fulfill basic needs, and lowering the money on the top-end, which is spent differently, like on luxury goods, put on the sideline as savings, or spent chasing assets. This redistribution may cause inflation too, even though the overall money supply is not increased.
- SketchySeaBeast 5y ago
  It's a bizarre thought that the only way for society not to spiral into inflation requires that the poor not be able to purchase the good and service that fulfill their basic needs. Not just be handed the money through UBI as that would cause inflation, but even gain it through jobs - either way it would increase those basic need demands.
  - willnonya 5y ago
    There are always two halves to this, the demand and the value of the money. Demand steadily increases over time, a UBI would cause a spike in that demand so there would be inflation at a higher rate while the market stabilizes. Without an increase in the rate the money is devalued this inflation should stabilize. The problems come when we devalue our money at the same time we're increasing demand causing changes at a rate faster than the markets can compensate. UBI is a shotgun approach and a political tactic rather than a real plan for helping those who need it. A negative income tax and other options that target this help where it's needed would be better options. either way though the trick is to get money where its needed without increasing debt or the money supply while doing so at a rate that doesn't shock the system.

Was about to comment exactly this. The question makes no sense, whether or not inflation happens has nothing to do with universal basic income itself, it's a question of where the money comes from.

chaostheory 5y ago

The question is fine and it makes sense. The issue is that it’s a mistake to ignore reality around it. For example, death penalty proponents tend to ignore the financial cost, which is being increased due to litigation from opponents of the death penalty. They can’t wish away anti-death penalty lawyers doing pro-bono work, or pretend that they don’t exist. In a similar fashion, UBI proponents will ignore the likelihood that the government will likely fund the program by printing more money. The other reality being ignored is that the supply and availability of goods doesn’t change. What happens with more demand for those goods? Prices rise.

trgn 5y ago

It might not be that simple. Even if UBI is funded by taxes, UBI would be a wealth redistribution, increasing money on the lower end, generally pushing up demand for goods and services that fulfill basic needs, and lowering the money on the top-end, which is spent differently, like on luxury goods, put on the sideline as savings, or spent chasing assets. This redistribution may cause inflation too, even though the overall money supply is not increased.

SketchySeaBeast 5y ago
It's a bizarre thought that the only way for society not to spiral into inflation requires that the poor not be able to purchase the good and service that fulfill their basic needs. Not just be handed the money through UBI as that would cause inflation, but even gain it through jobs - either way it would increase those basic need demands.
- willnonya 5y ago
  There are always two halves to this, the demand and the value of the money. Demand steadily increases over time, a UBI would cause a spike in that demand so there would be inflation at a higher rate while the market stabilizes. Without an increase in the rate the money is devalued this inflation should stabilize. The problems come when we devalue our money at the same time we're increasing demand causing changes at a rate faster than the markets can compensate. UBI is a shotgun approach and a political tactic rather than a real plan for helping those who need it. A negative income tax and other options that target this help where it's needed would be better options. either way though the trick is to get money where its needed without increasing debt or the money supply while doing so at a rate that doesn't shock the system.