[marcosdumay]

Inflation is a common red herring that people arguing in bad faith throw at policies they don't like, because most people don't know enough to reject it.

The monetary side of the economy deals with money volumes orders of magnitude larger than the real side, and reacts to change also orders of magnitude faster. Because of that, inflation is almost always completely determined by monetary policy. A real shock that can out-impact monetary policy looks like the end of the world.

[randerson]

Oil is up due to shortages due to the war in Iran. RAM is up in price due to supply shortages due to AI. During COVID much of the early inflation was caused by supply shortages due to factories shutting down. Then house prices shot up in suburbs as people moved out of cities so the demand went up there. None of that is due to monetary policy.

Saying that the total money supply is the cause of inflation is a very simplified view. There are currently trillions of dollars in M2 doing nothing except sitting in wealthy people's bank accounts and investments as generational wealth. That does not raise the prices of anything until it is being spent.

[marcosdumay]

Yes, we are in a situation today where the real economy may send inflation out of control in some countries. As we were at the early days of covid (but not an year or two later).

I don't know what relation you see between that and UBI.

[randerson]

I think UBI would have a similar effect just via increased demand instead of a decreased supply. When the poor and middle class are all getting supplemental income, and they're competing for the same rentals, the landlords will raise prices, and so on. Same for anything else in limited supply.

[marcosdumay]

You think UBI would be a constant shock on the economy in a size similar to closing the Strait of Hormuz?

[BJones12]

> Inflation is a common red herring that people arguing in bad faith throw at policies they don't like, because most people don't know enough to reject it.

That's very dismissive. Since you know so much, why don't you try to reject it?