[AnthonyMouse]

People keep saying "inflation" with no theory for how that could happen without creating any additional money.

Alice pays $8000 in taxes and receives a $12,000 UBI. Bob pays $12,000 in taxes and receives a $12,000 UBI. Charlie pays $16,000 in taxes and receives a $12,000 UBI. $4000 is transferred from Charlie to Alice. Alice buys $4000 more stuff, Charlie buys $4000 less stuff. Where is the inflation supposed to come from?

[imtringued]

UBI causes "inflation" because that's what it does. When you give poor people like Alice money, they spend it and create demand for consumer goods. Consumer inflation is what happens when demand for consumer goods exceeds supply. However, this is not a bad thing because increased demand also creates new job opportunities. Inflation is only bad when it cannot be balanced by increasing the supply side.

Charlie on the other hand may invest his excess income and therefore generate no demand for consumer goods. In fact it's the opposite, it's entirely possible that his investment is creating excess supply beyond a reasonable point and thereby causing deflation.

[AnthonyMouse]

> When you give poor people like Alice money, they spend it and create demand for consumer goods. Consumer inflation is what happens when demand for consumer goods exceeds supply. However, this is not a bad thing because increased demand also creates new job opportunities.

Aren't you now arguing that it wouldn't cause inflation? Even if there was an increase in demand, prices only increase if supply can't respond.

And if there are products where supply is artificially constrained (e.g. housing through zoning), isn't that the root cause of the higher prices and not the UBI?

> Charlie on the other hand may invest his excess income and therefore generate no demand for consumer goods.

But that still creates demand. It's demand for business real estate and legal services and office supplies, but that's still demand.

Inflation is caused by printing money.

> In fact it's the opposite, it's entirely possible that his investment is creating excess supply beyond a reasonable point and thereby causing deflation.

That's not deflation. Moreover, it would require Charlie to be a chump who is investing in a loss-making business.

Inflation is a change in the value of the currency. It isn't a change in the relative demand for different types of products and services. That's something else.