I do agree that it may cause some inflation (I'm not sure how much). I don't think those computations are correct though (3/16 = 18.75, not 25 for example). Inf

I do agree that it may cause some inflation (I'm not sure how much). I don't think those computations are correct though (3/16 = 18.75, not 25 for example). Inflation is measured as the cost for a basket of goods. Simply giving lots of people more money would not change the cost structure immediately. It would provide a larger consumer pool that companies can compete to server. The effects are complex and it's not immediately clear that inflation would spike to sky high levels, though a rise in inflation does occur when there is more trade because people are getting higher wages. A little bit of inflation is a positive indicator. However, redistributing definitely does have an economic effect because richer people has an increase propensity to save. When you take 10k that they weren't using and give it to someone poor, that money starts flowing immediately. An analogy would be something like, say you have a lake with some water seeping out from a small waterfall. If you go and take 10,000 liters and put it in a dry lake (ignoring soil absorption :P), that water will start flowing net much faster since you now have two waterfalls going. I'm not dismissing your inflation argument, I just anticipate that the magnitude of the effect is small (or at least able to be dealt with with monetary policy) compared to the benefit of giving people (especially poor people) some money. As an aside, part of the reason for doing this is not economic (assuming that inflation does not outpace reasonable technical measures to oppose it). The real question is are we rich enough to afford taking basic care of all of our citizens, regardless of where they started in life? It's a question of justice. We may not have reached that point yet, but I think it's definitely arguable that we have. You may reach a different conclusion, but ask yourself, if you were teleported outside of time and space, and didn't know if you were going to be rich or poor. What sort of system would you advocate for? http://en.wikipedia.org/wiki/Veil_of_ignorance http://en.wikipedia.org/wiki/Veil_of_ignorance We may not agree on the conclusions, but my position is that we should not let people starve or suffer if we can afford not to. Secondly, we should allow people the ability to choose their life circumstances to the best of their abilities. 10k a year removes many coercive influences and allows them to eat and sleep in safety.