I thought that was the argument, but wasn’t sure. I can only really repeat that this looks rational from the perspective of the individual, but from the perspective of the retailer, what’s stopping me from raising my prices for basic goods if I know that more people have disposable income?
Society is vulnerable now and will still be with UBI, you need legislation and you need to enforce that legislation either way. I think the global increase in prices doesn’t pan out equally; in some places this is a much bigger problem then in others. I think you are right that in places where companies jack up prices any chance they get, they will likely also use UBI as a chance to jack up prices.
So everyone gets a check regularly, no qualification needed except citizenship, but its just enough to get by. As you are more successful you end up paying more taxes than you get. So if you can’t work you have just enough to get by. If you make just enough to get by with work you will pay some in taxes but with the ubi you will likely be able to live a bit better and not be right on the line. If you made enough to be living that bit better you are likely paying close to as much in taxes as what you are getting in ubi. If you make enough at work to be doing pretty well you will be paying more in tax than what you get and that will continue the higher you go. Rather than having forms and qualification and taxes paying for folks to decide if you deserve help you just let the progressive tax system handle it.
Thanks. I can understand from the perspective of reducing bureaucracy and that through progressive taxation that richer folks benefit less from it, but I still don’t quite follow how this will not lead to inflation.
Imagine, I’m a food retailer. My goal is to make money, and I basically own the market. All of my customers plus some new ones suddenly have way more disposable income. Why wouldn’t I gouge my prices up?
Why not do it anyway without ubi. They have no competition I assume given the scenario you give. People can’t shop somewhere else I assume under your scenario.
I guess I’m still not getting it. If I’m being taxed more as a greedy corporation, isn’t that even more justification to jack up my prices on my customers who can afford a little more?
Because ultimately people don’t have much more to spend. Any competitor of yours that doesn’t jack up prices will win a lot of customers that way. You don’t want to price yourself out of the market.
Ultimately the same amount of money is in the economy, it’s just distributed differently.
The price jacking stops when all retailers start losing customers (simply cannot afford food). With UBI, they will gain new customers which will make them jack it up again
I don’t understand a lot of what you wrote, sorry
Evryone has UBI they receive it for being breathing. It covers your basics. You want more for some luxury? Go work get more.
That’s the most boiled down version I can come up with.
I thought that was the argument, but wasn’t sure. I can only really repeat that this looks rational from the perspective of the individual, but from the perspective of the retailer, what’s stopping me from raising my prices for basic goods if I know that more people have disposable income?
And you arrived to the most flagrant problem UBI has. Well done.
Your competor who will undercut your high prices to get your customers.
I’d believe that if we hadn’t just witnessed all food retailers simultaneously jacking up their prices recently and blaming inflation for it.
Society is vulnerable now and will still be with UBI, you need legislation and you need to enforce that legislation either way. I think the global increase in prices doesn’t pan out equally; in some places this is a much bigger problem then in others. I think you are right that in places where companies jack up prices any chance they get, they will likely also use UBI as a chance to jack up prices.
So everyone gets a check regularly, no qualification needed except citizenship, but its just enough to get by. As you are more successful you end up paying more taxes than you get. So if you can’t work you have just enough to get by. If you make just enough to get by with work you will pay some in taxes but with the ubi you will likely be able to live a bit better and not be right on the line. If you made enough to be living that bit better you are likely paying close to as much in taxes as what you are getting in ubi. If you make enough at work to be doing pretty well you will be paying more in tax than what you get and that will continue the higher you go. Rather than having forms and qualification and taxes paying for folks to decide if you deserve help you just let the progressive tax system handle it.
Thanks. I can understand from the perspective of reducing bureaucracy and that through progressive taxation that richer folks benefit less from it, but I still don’t quite follow how this will not lead to inflation.
Imagine, I’m a food retailer. My goal is to make money, and I basically own the market. All of my customers plus some new ones suddenly have way more disposable income. Why wouldn’t I gouge my prices up?
Why not do it anyway without ubi. They have no competition I assume given the scenario you give. People can’t shop somewhere else I assume under your scenario.
Well they have done it anyway, but reached an equilibrium where they all might start losing customers
exactly. The price is based on if the customer can go get a better price somewhere else as opposed to if the customer has more money to spend.
It’s not really “way more”. They’re still only going to spend what they wanted to spend before.
The money also isn’t created out of thin air, it’s obtained through taxes on higher incomes and businesses.
I guess I’m still not getting it. If I’m being taxed more as a greedy corporation, isn’t that even more justification to jack up my prices on my customers who can afford a little more?
Because ultimately people don’t have much more to spend. Any competitor of yours that doesn’t jack up prices will win a lot of customers that way. You don’t want to price yourself out of the market.
Ultimately the same amount of money is in the economy, it’s just distributed differently.
I’d believe the competitor argument if I hadn’t just witnessed all food retailers world-wide jack their prices without cause
But then surely UBI doesn’t matter if you believe they’ll jack up prices regardless of a good cause?
The price jacking stops when all retailers start losing customers (simply cannot afford food). With UBI, they will gain new customers which will make them jack it up again