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I'm guessing what @rbehrends meant to say is that if you earn $2500/month and $1500/month basic income (unconditional) is introduced, the combination of inflati
by sologoub 13y ago
I'm guessing what @rbehrends meant to say is that if you earn $2500/month and $1500/month basic income (unconditional) is introduced, the combination of inflationary pressure and downward salary pressure will result in you likely having a lower purchasing power than the assumed sum of the nominal values.
Personally, I don't believe that the impact is going to be quite as zero-sum. As recent stimulus attempts have shown, when you give poor people cash, they happily spend it, contributing to the economy. This in turn helps support greater production of goods and services. If the production capacity were fixed, then prices would jump. Instead, we are likely to see production jump more.
This is my personal belief. Anyone that claims to actually KNOW what will happen is fooling themselves. From my understanding, NO ONE has tried this at the scale being discussed.
Closest I think is Alaska Permanent Fund, but it's very small individual amounts (highest was 2008 in the amount of $2,069 for the year). Source: http://en.wikipedia.org/wiki/Alaska_Permanent_Fund http://en.wikipedia.org/wiki/Alaska_Permanent_Fund
Compare that with $14,000-$30,000 being discussed and you see that we have no idea what such an infusion will do. It might usher in a new golden age of arts and sciences, or it might make us all lazy and inept. Personally, I'd rather give it a go, than sit and guess forever. Ending poverty forever just sounds too good to pass up.