I don’t know how relevant this is now, but here’s a link to another post where I expressed my thoughts on what kind of pitfalls you might most likely face – https://lemmy.world/post/36867409
By the way, what is this phenomenon on Lemmy? Let’s say people are reluctant to read and comment on old posts published just a couple of days or a week ago, but with new ones, it’s a completely different story. What kind of psychology is this? Or it seemed to me?
Increasing the money supply does lead to inflation, but it’s not as simple as you make it seem. It’s worth pointing out that generally people intend UBI to redistribute money rather than add to the current supply. If necessary, there’s no reason that you can’t have stronger price regulation for any destabilized industry.
Because even if there is inflation, that doesn’t mean prices go up evenly. For example, staple foods are fairly insulated from inflation because of steady demand and low barriers to entry. If it seems noticeably profitable, a lot of people can start producing it and undercutting each other. Industry collusion is very hard to achieve the more players there are that can sabotage the group.
If UBI covers only basic needs (implied by the B) that are purchased at steady amounts regardless, that opens up the lower classes to a lot more optional spending. So you would probably see the most price increases on things that are currently bought by the upper middle class. Expensive hobbies, premium brands of things with cheaper alternatives, and services in general would probably become more expensive from induced demand.
I agree and my reply was a bit short and incomplete. I’m mostly worried about things like housing and infrastructure. Very expensive and mostly privatized. With that also access to the workers and companies that can actually build stuff.
Yeah, I’m not sure how those would be affected overall. Housing unfortunately has been going up in price quickly for a long time despite largely stagnant wages. But I expect having a reliable stream of income would be a significant benefit for low income people to be able to afford at least what they would have otherwise. It’s an area that really warrants more attention regardless of whether UBI is implemented.