I wouldn’t say it’s a strong opinion, but I’ve never seen a convincing argument that “inflation” (read “greedy bastards”) wouldn’t immediately wipe out the extra income - which would be very bad if the UBI were to replace other forms of welfare.
Inflation happens when demand increases faster than supply can keep up. The pandemic supply chain disruptions are a large recent example: none of the supply bottlenecks would have been difficult to solve, but the solutions would take two to five years to spin up. Absent some kind of regulatory rationing or allotment system, increasing prices let customers self-select on who really wanted the stuff that year and who did without.
As long as UBI was rolled out incrementally over years, supply would have the time it needed to expand, thereby preventing inflation. As a real example, the Alaska Permanent Fund has been going for decades, and I’ve never seen an argument it has increased inflation.
I wouldn’t say it’s a strong opinion, but I’ve never seen a convincing argument that “inflation” (read “greedy bastards”) wouldn’t immediately wipe out the extra income - which would be very bad if the UBI were to replace other forms of welfare.
Inflation happens when demand increases faster than supply can keep up. The pandemic supply chain disruptions are a large recent example: none of the supply bottlenecks would have been difficult to solve, but the solutions would take two to five years to spin up. Absent some kind of regulatory rationing or allotment system, increasing prices let customers self-select on who really wanted the stuff that year and who did without.
As long as UBI was rolled out incrementally over years, supply would have the time it needed to expand, thereby preventing inflation. As a real example, the Alaska Permanent Fund has been going for decades, and I’ve never seen an argument it has increased inflation.