The problem with UBI is that it's presuming the economic system mostly remains as it is (supply and demand -> buying and selling), but the suppliers will merely keep increasing their prices to maintain status quo. Unless costs are also heavily regulated, which is tangential to the implementation of UBI. In the end the only thing UBI does is delay the inevitable crash of the economic system. Maybe.
No, it's not a problem. The suppliers cannot keep increasing the prices to match UBI, because they will face increased competition from people who now have other options (more freedom) thanks to UBI.
For example, let's say I buy vegetables. With UBI, I might spend some time to grow my own. Or buy from a neighbor who expands his production.
It's true that price of labor might rise with UBI, but that can only rise to the share of labor as input. It will also force to replace labor-intensive products with capital-intensive (automation), which is a good thing.
Comments
The problem with UBI is that it's presuming the economic system mostly remains as it is (supply and demand -> buying and selling), but the suppliers will merely keep increasing their prices to maintain status quo. Unless costs are also heavily regulated, which is tangential to the implementation of UBI. In the end the only thing UBI does is delay the inevitable crash of the economic system. Maybe.
No, it's not a problem. The suppliers cannot keep increasing the prices to match UBI, because they will face increased competition from people who now have other options (more freedom) thanks to UBI.
For example, let's say I buy vegetables. With UBI, I might spend some time to grow my own. Or buy from a neighbor who expands his production.
It's true that price of labor might rise with UBI, but that can only rise to the share of labor as input. It will also force to replace labor-intensive products with capital-intensive (automation), which is a good thing.