Re:Sam Altman and Andrew Yang talk UBI
by doyceplunk on Wednesday January 01, 2020 @06:25AM
(#21927635)
The money will come from a 10% Value Added Tax (VAT). No new money will be printed to pay for the Freedom Dividend so there will be no inflation.
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| on HN ]
>No new money will be printed to pay for the Freedom Dividend so there will be no inflation.
Wow this is fundamental misunderstanding of what inflation is.
What exactly is the fundamental misunderstanding here? https://en.m.wikipedia.org/wiki/Inflation says
> Economists generally believe that very high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. Views on which factors determine low to moderate rates of inflation are more varied.
The freedom dividend can cause low to moderate inflation, if the extra tax is high enough to cause recession. But the only path to hyperinflation is government printing more money.