Re:People kept working, became healthier while on basic inco...
by take_a_breath on Thursday March 05, 2020 @12:45PM
(#22495960)
==If everyone in a city is already competing for a limited housing supply and suddenly everyone has an extra $1000 per month, I wouldn't be surprised if the cheapest housing costs suddenly increased by nearly $1000 per month.==
If we accept this logic as true, wouldn't it incentivize builders to increase housing supply? They would want to capture those higher rents and prices, right?
Re:People kept working, became healthier while on basic inco...
by cambalache on Thursday March 05, 2020 @11:47AM
(#22495241)
How so? The compensation is increased because less people are working, so the cost of labour is fixed (which is neglible in any case in a post-scarcity society as envisioned in the future)
Re:People kept working, became healthier while on basic inco...
by EpicEng on Thursday March 05, 2020 @12:07PM
(#22495514)
If labor remains fixed then people as a whole have more money. Prices go up due to inflation and increased demand, no? I realize that's simplistic, but is it not generally true?
Partially, but some of those increased compensation costs will translate to increased prices for everyone. That reduces the real value of a fixed UBI amount.
It's a given that a significant amount of UBI will be absorbed by inflation, particularly in housing prices in competitive cities. If everyone in a city is already competing for a limited housing supply and suddenly everyone has an extra $1000 per month, I wouldn't be surprised if the cheapest housing costs suddenly increased by nearly $1000 per month.