Re:UBI Would Likely Increase Poverty Rather Than Reduce It (...
by carom on Tuesday October 11, 2022 @02:35AM
(#33160141)
>if you institute a UBI of $1000/month, the maximum that people are willing (and able) to pay suddenly increases by around $1000/month
Most people are not willing to spend all of their excess money on rent. It will increase demand in desirable areas but landlords do not get to just raise rents because they want more money.
Your cause and effect are mixed up. Home owners don't do a calculation macro conditions and interest rates when setting a price. They look at comps, list, then go "wow, we got 3 bids over asking". They accept the highest one. The next sellers see their sale and set prices accordingly.
Yes, and?
And, if you institute a UBI of $1000/month, the maximum that people are willing (and able) to pay suddenly increases by around $1000/month. And since landlords are mostly not complete idiots, they will recognize this and increase rents by approximately $1000/month.
Which was the point of the poster you originally replied to.
The only way that won't happen is if another, cheaper, alternative exists (like buying a place to live instead of renting). Except that, wouldn't you know it, people selling houses have also realized that they can raise prices by the amount equivalent to a $1000/month increase in mortgage payments.