Uh...of course not. Same as when an across the board tax cut gives every worker some amount of extra money, it doesn't lead to massive inflation.
Besides, it's insane to assume that the price of a -single item- will jump to eat the entire cost of a payment such as UBI, because if that happens for every item, no one will be able to buy anything.
Tax cuts are an interesting analogy I hadn't thought of. The first difference that comes to mind is that a tax cuts are still "earned" money. Less of the money I worked to earn gets taken. So while a tax cut does result in more income, that income is still tied to work done by the individual, and proportional to their gross income. Also, there are generally more strings attached to tax cuts to incentivize the income being spent on certain things (ie child tax credit, retirement, etc). So not apples and oranges, but worth thinking about more and seeing if there are studies linking (or not) inflation to tax cuts as other replies suggest.
The $1001 candybar is just an analogy. I am _wondering_ if prices in general would adjust in a way that negates the UBI in part or whole. If 1000 is the new 0, then would pricing just adjust? I'd love to see data one way or the other on this, but am concerned that small-scale or regional studies might not be able to see this sort of effect.
Across the board tax cuts can certainly lead to inflation. More, if they're large. Or less, depending on the extent to which they're financed by tax increases.
Most of us started getting more money in our paycheck as of earlier this year; CPI held basically steady at ~2.2% (it's actually, at least for the first quarter, been lower than last year's first quarter, https://data.oecd.org/price/inflation-cpi.htm).
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Uh...of course not. Same as when an across the board tax cut gives every worker some amount of extra money, it doesn't lead to massive inflation.
Besides, it's insane to assume that the price of a -single item- will jump to eat the entire cost of a payment such as UBI, because if that happens for every item, no one will be able to buy anything.
Tax cuts are an interesting analogy I hadn't thought of. The first difference that comes to mind is that a tax cuts are still "earned" money. Less of the money I worked to earn gets taken. So while a tax cut does result in more income, that income is still tied to work done by the individual, and proportional to their gross income. Also, there are generally more strings attached to tax cuts to incentivize the income being spent on certain things (ie child tax credit, retirement, etc). So not apples and oranges, but worth thinking about more and seeing if there are studies linking (or not) inflation to tax cuts as other replies suggest.
The $1001 candybar is just an analogy. I am _wondering_ if prices in general would adjust in a way that negates the UBI in part or whole. If 1000 is the new 0, then would pricing just adjust? I'd love to see data one way or the other on this, but am concerned that small-scale or regional studies might not be able to see this sort of effect.
Across the board tax cuts can certainly lead to inflation. More, if they're large. Or less, depending on the extent to which they're financed by tax increases.
Most of us started getting more money in our paycheck as of earlier this year; CPI held basically steady at ~2.2% (it's actually, at least for the first quarter, been lower than last year's first quarter, https://data.oecd.org/price/inflation-cpi.htm).
Then what drives inflation, if not for "people have more dollars to spend"?
Sometimes, "people have more dollars to spend" causes inflation.
Sometimes, "reducing the number of things to buy" causes inflation.
Here's an article: https://www.economicshelp.org/macroeconomics/inflation/cause...