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That's right. Community wide Universal Basic Income would cause price rises for shelf goods, negating the intended beneficial effect. As the value of money is
by mrangle 1y ago
That's right. Community wide Universal Basic Income would cause price rises for shelf goods, negating the intended beneficial effect.
As the value of money is always relative to its scarcity. More money held by all individuals always leads to higher prices, because it leads to money being worth less. Life only becomes less expensive when making more money than others. This is a basic dynamic of how money works, at its most fundamental level.
Society would need price controls to stop shelf prices from rising, and to maintain the beneficial effect of UBI (being able to afford more goods). At that point shortages are incoming, and UBI income functionally transforms from money to credits for goods. Even if it is still called money. Credits implies a limit on how much goods people are allotted, even if given credits / money to redeem said allotment. The government needs to decide how much in goods each individual is allotted.
This is where it gets bad. Communist propaganda practice is to promise that the communist society will allot a maximum amount goods per person out of its GDP, implying an evenly distributed yet relatively well off populace. Visualize a pie that is cut in large slices and completely distributed.
The rub is that the government gets to keep any part of the pie that is not distributed, and so its incentive is to distribute the least amount of the pie and the smallest slices. Which is what we see in practice. People given the minimum of their collective production value to sustain their existence. With the government hoarding the rest. Slaves in all but name.
The government now has a taste of control over wealth distribution for part of its GDP, which it enacts via entitlement over some production value of work and private business. Whatever production value is left for the private sector economy is now tempting for the government to also take over and minimally distribute in the same manner, because again the government gets to keep much of the money. Private business and employment begin to become dirty words.
We live in a World that is dominated by the fundamental nature of money, some would call it a fallen world. Making a low amount of money feels like a slave's existence.
However, at least in a free market economy there is a type of escape hatch from that existence should someone figure out how to provide society with relatively more value than others. Whereas in a socialist society, that escape hatch tends to legally close as the years tick by and the personal allotment of goods declines.
- stevage 1y ago> That's right. Community wide Universal Basic Income would cause price rises for shelf goods, negating the intended beneficial effect. If that were true, supermarkets in wealthy areas would be much more expensive than in poor areas, but they aren't. No one likes overpaying for groceries, and a modest government income isn't going to change that.
- lr4444lr 1y agoSupermarkets in poor areas get reliable cash flow from EBT - it is arguably UBI in action. Its patrons tend to have lower rates of vehicle ownership and free time to seek better priced alternatives.