Alice pays $8000 in taxes and receives a $12,000 UBI. Bob pays $12,000 in taxes and receives a $12,000 UBI. Charlie pays $16,000 in taxes and receives a $12,000 UBI. $4000 is transferred from Charlie to Alice. Alice buys $4000 more stuff, Charlie buys $4000 less stuff. Where is the inflation supposed to come from?
Charlie on the other hand may invest his excess income and therefore generate no demand for consumer goods. In fact it's the opposite, it's entirely possible that his investment is creating excess supply beyond a reasonable point and thereby causing deflation.
Aren't you now arguing that it wouldn't cause inflation? Even if there was an increase in demand, prices only increase if supply can't respond.
And if there are products where supply is artificially constrained (e.g. housing through zoning), isn't that the root cause of the higher prices and not the UBI?
> Charlie on the other hand may invest his excess income and therefore generate no demand for consumer goods.
But that still creates demand. It's demand for business real estate and legal services and office supplies, but that's still demand.
Inflation is caused by printing money.
> In fact it's the opposite, it's entirely possible that his investment is creating excess supply beyond a reasonable point and thereby causing deflation.
That's not deflation. Moreover, it would require Charlie to be a chump who is investing in a loss-making business.
Inflation is a change in the value of the currency. It isn't a change in the relative demand for different types of products and services. That's something else.
You wouldn't quit your job. You would continue working. Like most people would. Why? Because if you didn't work, someone else would, and they would get way ahead of you. From my point of view, UBI would do nothing but cause inflation (at least for now anyway, story will change once lots of people have no skills that are needed in the job market).