Quote:
Originally Posted by Weitz
How much does the cost of goods and services increase if a UBI is implemented and now everyone knows there are more people with a base amount of money?
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I don't think there would be that much true inflation, but there would definitely be price changes at least in the short term. You redistribute tons of money from the middle class and wealthy to lower income people, which is the effect of UBI + taxes to pay for it. So there will be more demand for goods at the bottom of the pyramid and less at the top.
In housing, I would expect apartment rents to rise as people who couldn't previously afford to do so move out of their parents basement/ditch their roommates. But move-up houses probably suffer, as it will take the middle class longer to save for a move-up house due to higher taxes. That would be an initial shock, but rents would adjust once new construction catches up. There is already apartment rental housing being built in Calgary, and if rents went up there would be lots more construction, which would help push rents back down over time.
There would probably be some inflation, as lower income people are a lot more likely to spend money than wealthier people. Wealthier people save more money, because spending more at that level gives you less of a lifestyle upgrade. (Also, people who save are more likely to end up wealthy)