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As I understand it, basically if it is financed by taxes, or even non-FRS backed debt then probably no. This is simply redistribution of goods, so total number
by hamilyon2 5y ago
As I understand it, basically if it is financed by taxes, or even non-FRS backed debt then probably no. This is simply redistribution of goods, so total number of goods stays unchanged.
If we issue more money, it could lead to inflation, but not necessary. This is unrelated to if we spend it on UBI or not.
- willnonya 5y agoThere are two parts to this, the increase in the money supply which devalues it and the increase in demand from a significant number of people having more money to spend in the market. If we eliminate the increases in the money supply then the increase in demand will still apply an inflationary force. Without increases in the total money supply though those forces should stabilize to match the new higher demand. The problem is that we never eliminate the increase in the money supply and finance an incredible amount of spending through debt.