Hacker News new | ask | show | jobs
by derefr 2263 days ago
I think you wouldn't need to actually do any work to get this effect. Consider what happens if tons of people suddenly decides to take home a particular "fancy" food for free. The government pays the grocery store, but the grocery store also runs out of the food and buys more from its supplier. This is driving up demand for the fancy food. Now the fancy food is going to get more expensive, even though people are getting it "for free."

If you take my sibling comment about tax effects into account, this means that, as people over-consume a "free" food, and its price rises, they're effectively making larger and larger "purchases" which will have an effect on their taxes.

On the other hand, if it turns out that the food was only expensive because few people were buying it, in a sort of vicious circle—then when everyone buys it, and forces demand up, it'll force supply up, too, and the food will get cheaper for everyone, not just for people who get it "for free."

For example, if it turns out that we only weren't factory-farming caviar because of the low demand, but it's perfectly possible to do so, then we'll just turn into a society that farms and eats a lot of cheap caviar. No market distortion; just "unlocking" market efficiencies we couldn't previously reach, because the demand side didn't previously have the dollars to vote with. Everybody wins!