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You are missing the point here, in your example when new money is created (to be able to hand it to everyone) you simply devalue currency and create inflation.
by Ntrails 13y ago
You are missing the point here, in your example when new money is created (to be able to hand it to everyone) you simply devalue currency and create inflation.
Universal income is not being generated out of thin air by the government, it is being generated by tax. Therefore you will not find hyper inflation of the form you suggest.
- martin-adams 13y agoWell, the point I was getting to is how to approach such an effect through a thought experiment. I agree that my scenario is very different, but it's about the short and long term effects. You're right, my example would probably devalue the currency and create inflation, but what would happen as a result. Would prices go up within days, weeks year. What about wages and tax. How long would the rate of increase last.