[clnq]

That’s a potential problem with UBI. Prices could inflate to a level where if you want food you better get a job. Ultimately, UBI doesn’t create more resources in an economy - it just makes more nominal cash flow through it. Not to mention that the capitalistic imperative to maximise capital growth will definitely take advantage of a cash-rich market.

And this is a problem because what happens to those who then don’t qualify for UBI? How would they be able to afford the bare necessities? Withdrawing UBI from someone could mean banishing them from the economy, to a socioeconomic class of unimaginable deprivation (“cannot afford water nor food, nor any shelter, nor clothes” type of deprivation).

[imtringued]

>Ultimately, UBI doesn’t create more resources in an economy - it just makes more nominal cash flow through it.

You're assuming a competitive equilibrium. At that point you have reached optimality and it is impossible to improve, which then leads to the apparent conclusion that doing anything at all can make things only worse, not better.

"The current allocation of money is perfect. Optimality demands that these people stay homeless."

Only to then be disproven by this study as it proved net societal savings, which is impossible under the competitive equilibrium model.

The thing about assuming competitive is that it implies either that rational actors are non deterministic turing machines or P = NP.

[clnq]

> You're assuming a competitive equilibrium

No. That’s a different topic. I’m saying that it doesn’t matter how we distribute money — there is a finite number of real value in an economy.

[mofosyne]

Good point, in regards to concerns about inflation devaluing UBI's can be addressed through progressive taxation, which ensures fair funding without burdening the less well-off. Targeted government spending and investments in essential services can also mitigate potential inflation while promoting economic growth. Crafting effective UBI policies involves striking a balance between economic considerations and social support systems to maximize positive outcomes.

Looks like you got some common questions that maybe this site can explain as well.

https://basicincomeaustralia.com/faq/

[xyzzy123]

My worry is that as long as every city with desirable jobs is housing constrained, UBI will basically be a subsidy for landlords and existing landowners.

[mofosyne]

It's not a silver bullet for everything, but it will at least avoid the effect of people picking non optimal jobs just because they need food on the table.

Ideally this will be combined with good urban design to encourage higher density living and good public transportation with a decentralized city layout.

[clnq]

How does progressive taxation stop inflation? “Effective UBI” policies is the goal but doesn’t describe a solution to any particular problem.