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Not sure it would happen as you describe it. I don't understand why peoples with small income will suddenly feel entitled for a raise. After all they just got

by batiste 13y ago

Not sure it would happen as you describe it. I don't understand why peoples with small income will suddenly feel entitled for a raise. After all they just got a 1000 euros raise on top of their small income? For inflation I think the macro economic of Europe will not allow a drastic increase in prices. At least not in the prices of goods. Shops will still have to compete on prices and as there will probably be some people trying to live on the 1000 euro alone you might see very cheap shops flourish. If there is enough vacancy in real estate, people that have now more money will be able to afford a nicer/bigger apartments and might just drive the price of the least interesting ones down. Landlords will be forced to fix their apartment or lower the price. The situation at the end is that there a wealth redistribution that is guarantied and equal for everybody.

VLM 13y ago
"people that have now more money will be able to afford a nicer/bigger apartments" No not at all. The median dude will always live in the median house and nothing about this will change it. The primary real estate related effect is a dramatic change in macro societal debt to income ratios which in the long term has some interesting effects on bank assets and liabilities. Its very much like a stealth interest rate cut, with pretty much identical effects. The price of real estate will of course increase across the board, because the sellers know the buyers will have more money to pay mortgages with. The median guy will still sit in the median home, it'll just involve larger numbers in some bank account. "equal for everybody." LOL capgains are going to asset holders aka land and business owners and banks, not the joe 6 pack. The primary effect on J6P is getting kicked into a higher income tax bracket thus paying more taxes on a percentage basis. So .gov wins. Pretty much everyone wins but J6P as usual, as designed.
- Daniel_Newby 13y ago
  > Its very much like a stealth interest rate cut, with pretty much identical effects. No, it's even better. The basic income can create an effective negative interest rate without giving the bankers an infinite Santa Claus, and most of the money will turn the crank of the consumption machine instead of being parked in safe havens.

by batiste 13y ago

VLM 13y ago

"people that have now more money will be able to afford a nicer/bigger apartments" No not at all. The median dude will always live in the median house and nothing about this will change it. The primary real estate related effect is a dramatic change in macro societal debt to income ratios which in the long term has some interesting effects on bank assets and liabilities. Its very much like a stealth interest rate cut, with pretty much identical effects. The price of real estate will of course increase across the board, because the sellers know the buyers will have more money to pay mortgages with. The median guy will still sit in the median home, it'll just involve larger numbers in some bank account. "equal for everybody." LOL capgains are going to asset holders aka land and business owners and banks, not the joe 6 pack. The primary effect on J6P is getting kicked into a higher income tax bracket thus paying more taxes on a percentage basis. So .gov wins. Pretty much everyone wins but J6P as usual, as designed.

Daniel_Newby 13y ago
> Its very much like a stealth interest rate cut, with pretty much identical effects. No, it's even better. The basic income can create an effective negative interest rate without giving the bankers an infinite Santa Claus, and most of the money will turn the crank of the consumption machine instead of being parked in safe havens.