2 ms·
> Isn't UBI just going to raise inflation? Even assuming this scaremongering scenario, the world would be in a far better place if society assured everyone wou
by motorest 2y ago
> Isn't UBI just going to raise inflation?
Even assuming this scaremongering scenario, the world would be in a far better place if society assured everyone would be guaranteed a certain income.
Also, the scenario that supports the hypothesis of higher inflation is that more people in society are suddenly able to afford goods and services that were out of their reach without UBI. Can anyone actually put to words why that is undesirable?
- aesh2Xa1 2y agoI think one criticism is that prices would change to capture the UBI.I think I read the idea in "Progress and Poverty," although I've certainly seen it elsewhere since: - If everyone suddenly has more money (say $2 more per day) - And milk is a basic necessity - The milk seller knows everyone needs milk and now has $2 more to spend - They can gradually raise the price of milk by close to $2 - Consumers must still buy milk at the higher price - The intended benefit of the extra $2 is effectively captured by the milk seller The increases in general purchasing power can be absorbed by suppliers of essential goods. If you have just excess discretionary income in the general case, then non-essential goods can bump in price, too.
- s__s 2y agoThe milk seller doesn’t even need to consciously increase prices to match the raise in household income. It will happen organically. For the sake of argument, imagine UBI provides everyone with a million dollars a year. That doesn’t make everyone a millionaire. It just makes everyone’s money less valuable. It’s no different on a smaller scale.