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by phtrivier 9 days ago
> Won’t we get massive inflation?

I was expecting they would adress the elephant in the room : the price of the room to fit the elephant (as, in "rents").

There are form of subsidies in France called "APL" (nothing to do with the programming language - the form you have to fill in order to request the subsidy is waaay more cryptict.)

The tacit agreement in the flat renting business, is that your rent will be "whatever you earn as subsidy from the government, plus however we can afford to ask." So it's still a free market where homeowners get to set the price - because they own a scarce asset that is in high demand, probably because they wisely chose their parents and year or birth.

It's just that the subsidy artificially increase the floor price.

I've always wondered how a government implementing UBI would prevent such an effect on the goods that are the most scarce, unliquid, and high demand / low supply.

2 comments

You see the same when governments offer grants/assistance for down payments when buying houses. The price of houses increase that by that exact amount
UBI lottery! Everybody gets something, nobody knows how much.