5 ms·

That inflation is indeed temporary - it fulfills its role once the prices reach the level when UBI becomes irrelevant. Imagine a country where average income i

That inflation is indeed temporary - it fulfills its role once the prices reach the level when UBI becomes irrelevant. Imagine a country where average income is 2000 USD per month. Now, you give everyone UBI of 1000 USD per month, so the prices keep rising until cumulative inflation reaches 50% - now 3000 USD buys you exactly the same standard of living as 2000 USD used to do before. So, inflation stops, but no one's life is better after UBI than it was before. And of course if the government decides to raise UBI from 1000 USD to 2000 USD then the next wave of inflation follows, cancelling any gains once again.

itishappy 3y ago
> So, inflation stops, but no one's life is better after UBI than it was before. This does not follow. Many people may find they have the same quality of life as before. This isn't a failure. The relative significance of $2k is much greater to someone making <$2k (>2x increase) than someone making >$2k (<2x increase). It seems like in terms of influencing behavior, the greater effect would be felt by the poor, and there's more poor.
- Detrytus 3y ago
  > The relative significance of $2k is much greater to someone making <$2k (>2x increase) than someone making >$2k (<2x increase). That only works on individual level, in a world without inflation. it does not work when when you give money to everyone. Yes, I agree, rich people won't even notice that extra $1k of UBI in their pockets. And they also won't notice a price of pizza going from $20 to $30. Poor people, however, will stay poor. As a general principle: money is not a real thing. It doesn't exist. It's only a symbol, means of accounting. You cannot eat it, you cannot wear it. You cannot fix the poverty by giving everyone money if you do not increase the amount of goods available for purchase in the market at the same time.
  - itishappy 3y ago
    > Poor people, however, will stay poor. Right, so it's always in people's best interest to work harder, but $2k buys a lot more pizza than $0, regardless of price. > You cannot fix the poverty by giving everyone money if you do not increase the amount of goods available for purchase in the market at the same time. Supply is elastic. Increasing demand should indeed increase supply.
    - Detrytus 3y ago
      > Supply is elastic. Increasing demand should indeed increase supply. That's some Keynesian bullshit, supply is constrained by a lot of factors, demand alone can't increase it. And even when it does, the intermediate step is, guess what? Raising prices.
      - itishappy 3y ago
        Right, demand influences pricing influences supply.

itishappy 3y ago

> So, inflation stops, but no one's life is better after UBI than it was before. This does not follow. Many people may find they have the same quality of life as before. This isn't a failure. The relative significance of $2k is much greater to someone making <$2k (>2x increase) than someone making >$2k (<2x increase). It seems like in terms of influencing behavior, the greater effect would be felt by the poor, and there's more poor.

Detrytus 3y ago
> The relative significance of $2k is much greater to someone making <$2k (>2x increase) than someone making >$2k (<2x increase). That only works on individual level, in a world without inflation. it does not work when when you give money to everyone. Yes, I agree, rich people won't even notice that extra $1k of UBI in their pockets. And they also won't notice a price of pizza going from $20 to $30. Poor people, however, will stay poor. As a general principle: money is not a real thing. It doesn't exist. It's only a symbol, means of accounting. You cannot eat it, you cannot wear it. You cannot fix the poverty by giving everyone money if you do not increase the amount of goods available for purchase in the market at the same time.
- itishappy 3y ago
  > Poor people, however, will stay poor. Right, so it's always in people's best interest to work harder, but $2k buys a lot more pizza than $0, regardless of price. > You cannot fix the poverty by giving everyone money if you do not increase the amount of goods available for purchase in the market at the same time. Supply is elastic. Increasing demand should indeed increase supply.
  - Detrytus 3y ago
    > Supply is elastic. Increasing demand should indeed increase supply. That's some Keynesian bullshit, supply is constrained by a lot of factors, demand alone can't increase it. And even when it does, the intermediate step is, guess what? Raising prices.
    - itishappy 3y ago
      Right, demand influences pricing influences supply.