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This won't work. Prices will rise because ultimately there won't be enough supply to satisfy the increased demand of goods required at the most basic level of l
by bsbechtel 13y ago
This won't work. Prices will rise because ultimately there won't be enough supply to satisfy the increased demand of goods required at the most basic level of living. The only way to help the poor and unemployed is to find innovative ways to increase supply, which will lower the cost of producing said goods. This is why, in the United States, even the poorest citizens have access to food and housing - our government subsidizes the production of these products, which spurs an increase in supply and lowers the price.
- lumberjack 13y agoWhy would the demand for basic goods change? The poor are are already getting fed and clothed in much the same way as they would on basic income.
- bsbechtel 13y agoBecause it puts an extra $1,000 in everyone's pocket, not just the poor, so everyone will have additional money to spend on higher quality goods, driving up demand along the entire spectrum of price/quality for a given item. I'm not a huge fan of subsidies because it distorts international markets and hurts other countries (mainly poor ones), but a better alternative might be to give large corporations a tax incentive to pay their minimum wage workers more, or provide them with additional benefits. Redistribution of wealth through the government is a great idea in theory, but it eventually breaks because you get a crooked politician in office or someone who can't manage the redistribution program effectively, as we're seeing in the US (look at our current debt problem). Plus, redistribution programs involve the government, which is an unnecessary step and complicates the process. If you encourage corporations to just pay their employees more, governments don't need to 'tax the rich' to 'feed the poor'.