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I think if you follow where the money goes, that will be whether UBI causes inflation or not. In the best case, it results in a virtuous cycle where growth is c
by CrackerNews 3y ago
I think if you follow where the money goes, that will be whether UBI causes inflation or not. In the best case, it results in a virtuous cycle where growth is created and sustained. In the worst case, it further inflates the value of low supply goods. This will most likely be up to market conditions along with business models/strategies and productive capabilities of various industries and marketplaces and how they will weigh out.
In the example of housing however, I don't think UBI will help because the business model is dependent on inflating prices of homes as investment vehicles. The price must go up one way or another. What actually bring home prices down would be something like a market crash where investment expectations are muted.
Cheaper labor however comes from offshore countries that have a lower standard of living. If average wages go up, then domestic workers will expect that as a baseline. A business can pay above the average for above average workers, and vice versa. The expectation of hiring cheaper immigrant labor is getting the same level of expertise for cheaper. This does not always go to plan, which is why there is still some demand for domestic workers and their expertise. Automation may have a similar effect but without the same virtuous cycle to offshore countries as before. (Not to mention that the difference between revenue and cheaper labor cost is incentivized to be kept as business profits, which doesn't mean that prices go down since demand and supply now expects higher prices as the market baseline.)
- bequanna 3y ago> Cheaper labor however comes from offshore countries that have a lower standard of living. Please explain why wages went up significantly for low income workers during the pandemic. The answer (of course) is that we artificially decreased the pool of available workers by paying people to stay home for an extended period—-exactly what UBI would like to do. The price of labor is simple supply and demand. If we pay the lower skilled people the same amount they would make from waiting tables or swinging a hammer, why would anyone want to do that work? I don’t get it. Why do people make these complicated, purely academic arguments in support of UBI? It’s obviously going to increase taxes and increase inflation. It’s obviously bad for the people who choose to actually work, save and pay taxes.
- TalEs 3y agoI think you are unsure of how UBI works. It is not paying people to stay at home, it is just a modification of tax brackets, such that people below a certain level pay negative taxes, aka receive money to live and survive. Unlike now, where everyone has to pay taxes, even the poor. UBI does not need an increase in taxes, just a proper tiering of it, such that the ultra rich pay more to support society better. By having people who pay negative taxes, they are not burdened with living paycheck to paycheck and can focus on improving their lives. If you are working, saving and paying your proportionate taxes, UBI should not affect you in any way. It's just a fix for rampant capitalism, where the rich are supposedly working millions of times harder than their exploited working class.
- bequanna 3y ago> receive money to live and survive I’m not sure you know how generous the current welfare system is. Low income people can already receive assistance for: housing, food, internet, phones, completely free medical care and straight up cash. Not to mention that we have made it incredibly easy to claim disability for anyone who essentially doesn’t want to work. …but in addition to that, you’re telling me I should be giving more of my money to them? I have sympathy but I also have a limit. Also, where are these “literally starving” people in the US? Other than mentally ill who have difficulty taking advantage of the many services available, I have yet to encounter them.
- toomuchtodo 3y ago