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> ~60% of consumption in the US is for goods that adjust supply relatively well: food, clothing, material goods, services et cetera. Any demand increase will l

> ~60% of consumption in the US is for goods that adjust supply relatively well: food, clothing, material goods, services et cetera. Any demand increase will lead to price increases against a fixed supply. You propose that supply will rise if demand does. Perhaps. But a lot of these industries rely on unskilled workers, and UBI would give those unskilled workers free money. I hypothesize unskilled workers would demand a higher wage to trade their freetime for worktime, and that would increase costs and therefore prices. > The US has really cheap housing in places with no jobs and expensive housing in places with jobs. UBI would allow those without jobs to move to the cheap places There is a reason some places are cheap: little economic opportunity. We saw the massive change some of these places underwent when covid sent many to remote only work amd they moved out of the city. The difference is that during covid those people brought private dollars to the cheaper places. UBI proposes to steal from wealthy to prop up cheap places. It creates economic deadweight.

bryanlarsen 2y ago
> . I hypothesize unskilled workers would demand a higher wage to trade their freetime for work I hypothesize the opposite. A UBI eliminates the need for minimum wage. And small differences in income are very meaningful for the poor. For instance if somebody is making $1k/month from UBI, a $1/hour job increases income to $1160. That's very meaningful and some would take it if nothing else is available.
- hellojesus 2y ago
  > A UBI eliminates the need for minimum wage. We shouldn't have any minimum wage regardless of UBI. But with regards to UBI, you didn't remove minimum wage. All you did was push minimum wage to all members of society regardless of their employment status. You state as much: a $1/hour job is fine if you already make $x, where $x is minimum_wage404. It actually creates a larger burden on the private sector than if you just let minimum wage exist, as now you have to pay everyone minimum wage just for breathing. This would create stimulus effects which are counteracted by inflation in time.

bryanlarsen 2y ago

> . I hypothesize unskilled workers would demand a higher wage to trade their freetime for work I hypothesize the opposite. A UBI eliminates the need for minimum wage. And small differences in income are very meaningful for the poor. For instance if somebody is making $1k/month from UBI, a $1/hour job increases income to $1160. That's very meaningful and some would take it if nothing else is available.

hellojesus 2y ago
> A UBI eliminates the need for minimum wage. We shouldn't have any minimum wage regardless of UBI. But with regards to UBI, you didn't remove minimum wage. All you did was push minimum wage to all members of society regardless of their employment status. You state as much: a $1/hour job is fine if you already make $x, where $x is minimum_wage404. It actually creates a larger burden on the private sector than if you just let minimum wage exist, as now you have to pay everyone minimum wage just for breathing. This would create stimulus effects which are counteracted by inflation in time.