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?
I’m not saying we need to optimize for lowering inflation and increasing productivity, I’m saying inflation without an increase in productivity (stagflation) doesn’t help workers, and inflation with a decrease in productivity hurts workers.
I think you’re underestimating specialization. You’re average person is not going to be able to make an addition on there home that is safe and up to code without a couple years of schooling and apprenticing. If that’s what your using to counteract wage inflation of the carpenter then that carpenter can charge the equivalent of 2 years of your wages in labor costs alone, that doesn’t get into materials.
Staying on the subject of home additions let’s imagine a neighborhood of say 5 people who want a new addition with 2 workers who can do it this year. Before UBI the houses will bid up the price of the addition until the two richest families win and get the addition. After UBI one of the workers quits, everyone now has an extra $1,000 though so they want to get an addition, but everyone else has it too so prices again get bid up until the one richest family gets an addition. That second richest family has lost purchasing power, they used to be able to purchase an addition, and now they can’t. Sure the carpenter is making a shit ton but so is everyone else so when he goes to buy a new car he’s competing for that more limited supply with other people now making $ hundreds of thousands a year.
These people are losing purchasing power because the supply is decreasing. Real wage growth (wage inflation - inflation) requires an increase in purchasing power, ie a worker can buy more stuff with there wages. The worker can not buy more stuff with there wages if the amount of stuff in general goes down.
This is why are jobs guarantee is better, the government can use the unused labor to increase the supply. Even if the government is shitty and inefficient at making cars, every car they make is one that wouldn’t have been created anyway so the total supply goes up and now a person who previously couldn’t buy a car can buy a shitty government car, there purchasing power has increased. And it doesn’t even have to be a shitty car, Chinese state owned companies have shown that they are fully capable of making decent quality low price electric vehicles.