1182
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 18 Oct 2023
1182 points (93.1% liked)
Political Memes
5252 readers
1631 users here now
Welcome to politcal memes!
These are our rules:
Be civil
Jokes are okay, but don’t intentionally harass or disturb any member of our community. Sexism, racism and bigotry are not allowed. Good faith argumentation only. No posts discouraging people to vote or shaming people for voting.
No misinformation
Don’t post any intentional misinformation. When asked by mods, provide sources for any claims you make.
Posts should be memes
Random pictures do not qualify as memes. Relevance to politics is required.
No bots, spam or self-promotion
Follow instance rules, ask for your bot to be allowed on this community.
founded 1 year ago
MODERATORS
Please expand.
You and everyone you know has an extra $2k dollars per month from UBI. Your landlord raises rents because he knows everyone has 2k more.
In a perfect world your landlord would not be greedy and take that money. He would have actual competition from other landlords willing to rent. We don't live in a perfect world.
Increasing the money supply causes inflation.
That's just a repackaged argument against minimum wage. It's wrong there, too. Market competition is a thing, even for shitty landlords.
In the present day, the vast majority of the money created (over 90%) is created by banks when they give loans (I kid you not: you can read all about it in the paper "Money Creation In The Modern Economy", from the Bank Of England) so it actually makes sense what seems to have happenned in Alaska (as pointed out by others) that in overall UBI reduced inflation if UBI ended up reducing the number of loans people took.
This effect exceeding the inflation from UBI is probably only possible because it's a fixed amount per-person rather than a percentage of all the money in circulation, so it's a small percentage of all the money in circulation (a $660 UBI for every man woman and child in the US would be 1% of M3) and a tiny percentage of all the money in existence (i.e. including wealth held in various non-monetary forms).
So yeah, UBI would create some inflation, but not as much as you seem to think it would and it has side effects that work in the opposite direction which, judging by the experience in Alaska, are strong enough to offset the direct inflactionary effects of UBI.