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I'm not necessarily against UBI, who doesn't want to eliminate poverty, but I have trouble understanding how it doesn't immediately result in price inflation of

I'm not necessarily against UBI, who doesn't want to eliminate poverty, but I have trouble understanding how it doesn't immediately result in price inflation of the goods and services most consumed by those at the lower end of the income spectrum. For example, if everyone is given an additional $1,000 / month, would most of that not immediately get captured by landlords through inflated rental prices for low-income rental units? Wouldn't it be the same story for used cars? etc? UBI doesn't magically increase the supply of goods / services, only the demand for them, right?

EarthAmbassador 3y ago
Inflation isn’t simply driven up by supply but also greed. It is highly important to remember economics is snake oil for the lost part. As short a time as a few years ago, the Nobel Prize was awarded for work proving wage increases did it limit jobs, as was claimed for generations. One would think this had been proven long ago, but that’s not the case. It’s propaganda. Indeed, a great deal of the economic orthodoxy is little more than propaganda. All economic notions should be considered such until proven beyond a doubt. And it probably would be a good thing to track how wrong is the nonsense of people like Kudrow and Summers, yet they are trotted out as gospel constantly. Jamie Dimon too.
saithier 3y ago
I don't see how it would cause rent to rise, unless it somehow increased demand for housing. Which, I suppose, it might if it made it possible for the homeless to actually be able to find homes.... of course, I fail to see how that would be a bad thing.
- Pet_Ant 3y ago
  > I don't see how it would cause rent to rise, I mean one argument is implicit collusion amongst landlords. UK price fixing like this is illegal, but in US I believe it is legal as long it is not explicitly.
bryanlarsen 3y ago
Some people, given $1000 a month, would move to locations where rent is less than $1000. There are still lots of those, but they are in locations without jobs. Lots of people are originally from those low rent locations and would like the opportunity to move back. So if UBI makes people more mobile and able to move to find low rent apartments, it limits the ability of landlords to raise rent.
- underseacables 3y ago
  Some people, given $1000 a month, would move to locations where rent is less than $1000. With all due respect, you don't know that. What's for certain is that it would increase money supply in the economic system. Everything else is pure supposition.
  - bryanlarsen 3y ago
    What's for certain is that it would increase money supply With all due respect, you don't know that. The more well thought out UBI systems are fiscally balanced. They increase taxes enough to pay for UBI. The average taxpayer would receive a tax increase for the same amount as the UBI they receive. People with less than average income would see a smaller tax increase and Bill Gates would see his taxes go up by much more than the UBI he would receive.
    - underseacables 3y ago
      You just use the words fiscally balanced when describing the American economy. Specifically handing money out. The country cannot even pass single spending bills, you have no idea if it would be fiscally balanced or not. UBI is like communism, it hasn't worked anywhere it's been tried, and would still require taking money from one group and giving it to another. In the past, when the government hasn't been able to do that, they just print more.
      - bryanlarsen 3y ago
        > they just print more. No they don't. They borrow more. Similar effect, but more accurate and a very different connotation.
deleted 3y ago
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EarthAmbassador 3y ago

Inflation isn’t simply driven up by supply but also greed. It is highly important to remember economics is snake oil for the lost part. As short a time as a few years ago, the Nobel Prize was awarded for work proving wage increases did it limit jobs, as was claimed for generations. One would think this had been proven long ago, but that’s not the case. It’s propaganda. Indeed, a great deal of the economic orthodoxy is little more than propaganda. All economic notions should be considered such until proven beyond a doubt. And it probably would be a good thing to track how wrong is the nonsense of people like Kudrow and Summers, yet they are trotted out as gospel constantly. Jamie Dimon too.

saithier 3y ago

I don't see how it would cause rent to rise, unless it somehow increased demand for housing. Which, I suppose, it might if it made it possible for the homeless to actually be able to find homes.... of course, I fail to see how that would be a bad thing.

Pet_Ant 3y ago
> I don't see how it would cause rent to rise, I mean one argument is implicit collusion amongst landlords. UK price fixing like this is illegal, but in US I believe it is legal as long it is not explicitly.

bryanlarsen 3y ago

Some people, given $1000 a month, would move to locations where rent is less than $1000. There are still lots of those, but they are in locations without jobs. Lots of people are originally from those low rent locations and would like the opportunity to move back. So if UBI makes people more mobile and able to move to find low rent apartments, it limits the ability of landlords to raise rent.

underseacables 3y ago
Some people, given $1000 a month, would move to locations where rent is less than $1000. With all due respect, you don't know that. What's for certain is that it would increase money supply in the economic system. Everything else is pure supposition.
- bryanlarsen 3y ago
  What's for certain is that it would increase money supply With all due respect, you don't know that. The more well thought out UBI systems are fiscally balanced. They increase taxes enough to pay for UBI. The average taxpayer would receive a tax increase for the same amount as the UBI they receive. People with less than average income would see a smaller tax increase and Bill Gates would see his taxes go up by much more than the UBI he would receive.
  - underseacables 3y ago
    You just use the words fiscally balanced when describing the American economy. Specifically handing money out. The country cannot even pass single spending bills, you have no idea if it would be fiscally balanced or not. UBI is like communism, it hasn't worked anywhere it's been tried, and would still require taking money from one group and giving it to another. In the past, when the government hasn't been able to do that, they just print more.
    - bryanlarsen 3y ago
      > they just print more. No they don't. They borrow more. Similar effect, but more accurate and a very different connotation.

deleted 3y ago

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