UBI leads to inflation even if more money isn't printed.
Once producers realize that consumers have extra money in their pockets, they'll raise prices on goods accordingly (especially rent). The "freedom dividend" will end up cycling right back into the hands of the wealthy because they're the ones who control the pricing, and Yang's proposal doesn't account for price controls.
I'm against it.
To borrow a phrase from our Jewish brethren: Oy Vey!
That is so not how pricing works, Schatz. With the poor getting poorer and the rich getting richer you already see what happens. Retailers like Macy’s and Sears die. People trade Target for Wal-Mart and Wal-Mart for Dollar Tree. On the other side they trade Macy’s for smaller boutiques and Williams-Sonoma. Price variability and product quality variability increase.
When you institute a UBI, people will trade 30% water infused beef flavored mechanically separated pink slime for regular ground up scraps and chuck. Cattle ranchers will breed more cows (we can respond pretty quickly to meat demand changes) and you’ll see the gross cow bits in pet food instead for dowggy and kitteh.
Price/quality variety will shrink though mid-range product choice will increase.
If producers simply raise prices, competitors will swoop in..and higher taxes on profits will fold that price increase into government projects. If you institute this suddenly, there will be shocks...but careful implementation, say starting with the poorest and working up over 4-5 years would ease that.
We’ll have Kia dealers saying “just 3 months of yang bucks can get you into a brand new car!” Instead of “sh**tty credit? Broke af? We’ll give you a questionable used car at a great low interest rate of 19.99%. Just send us some of your blood so our loan shark goons know where to find you
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