Re:A Basic Income Should Be the Next Big Thing
by nostrebored on Tuesday May 03, 2016 @05:37PM
(#11624439)
That's a significantly more optimistic outlook than the idea that prices would inflate relative to the UBI stipend handed out. Particularly around staples like food, rent, etc.
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Re:A Basic Income Should Be the Next Big Thing
by truphan on Tuesday May 03, 2016 @07:13PM
(#11624976)
Why would there be inflation? No new money is being printed to accommodate the extra income for the recipient, those funds are distributed by reallocating money already in circulation
Re:A Basic Income Should Be the Next Big Thing
by dragonwriter on Tuesday May 03, 2016 @07:20PM
(#11625003)
Any redistribution is going to have some upward pressure on prices of goods demanded more by those receiving the redistribution than those who are, in net, paying it, and downward pressure on prices of goods demanded more by those paying the redistribution than by those who are receiving it.
For most goods, the ratio of the new to old price should be less than the ratio of the post-distribution to pre-distribution income of the group demanding the item, though this may not be the case for, e.g., goods where there are monopoly rents being extracted.