>This will be a problem when there is a very high possibility of mass unemployment when advances in AI will make most jobs obsolete. We've been here a few time

>This will be a problem when there is a very high possibility of mass unemployment when advances in AI will make most jobs obsolete. We've been here a few times. Not with AI, but with the agricultural revolution (hunting and gathering became almost obsolete), the industrial revolution (physical force became almost obsolete, if it was not needed in conjunction with intelligence), the computer revolution (tedious data processing became obsolete), the internet (messengers and mail, as well as local businesses became almost obsolete)... Every time, large swaths of human work were made nigh-obsolete, but societal progress needed people to find other niches to work in to expand our societal wealth. If everybody just laid down their work and didn't look for anything new, some other civilization would have taken over, because somebody there would. >UBI. This allows people that are jobless to still contribute to the economy and keep (local) businesses alive. If the money they use is not backed by value production it will make everything more expensive, since the purchasing power of that currency depends on less value. Local business will be the last to be kept alive, because UBI will need to be lower than working wages to motivate others to continue working whose work is still needed. Local businesses have the habit of being more expensive. UBI receivers will be the last people able to afford that luxury. >I think making the UBI low enough that most people will still work is exactly what would cause inflation. Why? The more people work, the more value is being produced by this society, the less inflation there should be, due to costs being lower. >If the UBI replaces wage, the amount of money in circulation wouldn't change, so no inflationary pressure. But nobody worked for this money, since it's a redistribution it will have inflationary effects. Because there's the same amount of money, with less things to buy for it.