Re:Free Money: The Surprising Effects of a Basic Income Supp...
by dragonwriter on Tuesday November 14, 2017 @01:01AM
(#15693016)
> The bridge example is economically equivalent to not buying out the bridge but giving everyone the amount necessary to pay daily tolls. Why wouldn’t rents go up (in either scenario)?
They would go up; but, absent a perfect monopoly (which real property available for rent is usually not subject to in even the short term), it would be unlikely to go up the exact amount of the subsidy (considering only the effect of the subsidy).
> Or, which supply/demand curves do you think differ here from the UBI case?
The difference is that its a lot more plausible for residential rental property in a particular locality to be effectively monopolized than for that to be the national norm. And, to the extent the effect is under consideration is real, it is explicitly a monopoly effect.
They would go up; but, absent a perfect monopoly (which real property available for rent is usually not subject to in even the short term), it would be unlikely to go up the exact amount of the subsidy (considering only the effect of the subsidy).
> Or, which supply/demand curves do you think differ here from the UBI case?
The difference is that its a lot more plausible for residential rental property in a particular locality to be effectively monopolized than for that to be the national norm. And, to the extent the effect is under consideration is real, it is explicitly a monopoly effect.