Reply to How do you feel about UBI?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Won’t UBI just lead to massive inflation like the pandemic payments did?[/quote]

Inflation is a result of money supply.  If the median HHI right now is $80k and the median UBI HHI is $50k...it will be deflationary.  Maybe people will be able to earn more than $30k on side hustles, but probably not.

Of course, much of the theory on why UBI would be $50k comes from the idea that AI and robots drastically reduces the costs of things...a car will now cost 50% less if few people are needed to produce it and/or people stop owning cars outright and just subscribe to a driverless car service...food production won't need labor as robots do all the farming or meat packing or whatever...etc.

The problem is that everyone is very fuzzy on how UBI will work.  Would seem that companies will need to be taxed at like 80%+ to support UBI payments.[/quote]

NP. I still don’t see how UBI would be disinflationary. That makes no sense.
[/quote]

Well, if median HHI drops from $80k to $50k, that will pull money out of the economy and be deflationary.

What else do you need to know if you accept that premise?[/quote]

Holy moley, maybe learn some economics. No, a lower median HHI does not mean deflation, or that money is being pulled out. It usually just means money is concentrated in the upper tail that median measures don't reflect.

Also, inflation is not evenly distributed. Lower income households tend to experience higher inflation than others, in part because necessities are more inflation-sensitive and in part because those households are unable to take advantage of cost-stabilizing measures (classically, buying a home, buying food in bulk, etc). [/quote]

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