Quote:
Originally Posted by iggy_oi
Potentially, but my original point wasn’t that inflation caused by UBI would hurt its value over the long run, rather inflation in general regardless of the source.
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What I don't get is this argument that UBI would cause inflation, yet increasing the minimum wage to $15/hr somehow wouldn't.
If your goal is to get more money into the hands into people currently at the bottom of the pay scale, it seems that no matter how you do so, it's going to result in inflation. More money in the hands of consumers means higher demand for goods, which consequently means inflation...
Then you have the problem of small businesses not being able to afford the higher minimum wage for workers, meaning some of them go out of business. This means less competition in the market which in turn would puts upward pressure on prices...
The way I see it, inflation is an inevitable consequence of
any measure taken to decrease inequality in society and improve the financial situation of the poor and lower-middle class.