2 ms·
> 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
by 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 agoRight, demand influences pricing influences supply.