Re:Request For Research: Basic Income
by phaus on Wednesday January 27, 2016 @07:41PM
(#10984930)
I understand the argument. What I'm asking about, is whether or not it would negate the positive effects of a basic income. The people who argue against the idea of a basic income often use this argument as evidence that it can't possibly work.
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Re:Request For Research: Basic Income
by ctdonath on Wednesday January 27, 2016 @08:50PM
(#10985455)
The whole point of basic income is to reduce the friction for obtaining necessities ... which is increasing demand for a limited supply. Demand increases, supply either exhausts rapidly or finds some other way of increasing friction - usually by increasing prices, stabilizing right about back where we started but with higher prices.
In addition, money itself is of limited supply. Reducing the friction for obtaining money results in increased demand for that limited supply of money. Demand increases, supply either exhausts rapidly[1] or finds some other way of increasing friction - usually by increasing prices (inflation), stabilizing right about back where we started but with higher prices.
[1] - "The problem with socialism is eventually you run out of other people's money."