10 ms·

UBI does not cause inflation.

varjag 6y ago
Any unbalanced money supply causes inflation. This ultimately puts a practical cap on how high UBI can be in a given economy.
- aiyodev 6y ago
  False. Read this article: https://medium.com/basic-income/wouldnt-unconditional-basic-income-just-cause-massive-inflation-fe71d69f15e7 https://medium.com/basic-income/wouldnt-unconditional-basic-...
  - varjag 6y ago
    Need a whole lot more to be convinced that basic economic mechanism can be circumvented than someone's enthusiastic Medium blog.
    - aiyodev 6y ago
      That's Scott Santens. Not just a "someone".
aww_dang 6y ago
An inflation of the money supply is by definition inflation. When the supply of money is increased by debt monetization (the status quo) price inflation follows. If productivity increases, all things being equal prices would have fallen and benefited the consumer. Where are the low income people decrying cheaper mobile phone prices? If you suggest that UBI will be fully funded by taxes, then the taxes will increase prices.
- aiyodev 6y ago
  > An inflation of the money supply is by definition inflation. Not true. Inflation refers to changes in the price of goods in services, not changes in the money supply. This is basic economics anybody who graduated high school should know.
  - aww_dang 6y ago
    https://wiki.mises.org/wiki/Inflation#Definitions https://wiki.mises.org/wiki/Inflation#Definitions https://en.wikipedia.org/wiki/Inflation#Austrian_view https://en.wikipedia.org/wiki/Inflation#Austrian_view https://en.wikipedia.org/wiki/Monetary_inflation https://en.wikipedia.org/wiki/Monetary_inflation https://blogs.wsj.com/economics/2011/05/13/inflation-definitions-through-the-ages/ https://blogs.wsj.com/economics/2011/05/13/inflation-definit... "Webster’ American Dictionary of the English Language, published by G&C Merriam Co. in 1864, was the first to formally define inflation as an economic term: undue expansion or increase, from over-issue; — said of currency." https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/1997-economic-commentaries/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation.aspx https://www.clevelandfed.org/en/newsroom-and-events/publicat... "its original meaning—a rise in the general price level caused by an imbalance between the quantity of money and trade needs"

Any unbalanced money supply causes inflation. This ultimately puts a practical cap on how high UBI can be in a given economy.

aiyodev 6y ago
False. Read this article: https://medium.com/basic-income/wouldnt-unconditional-basic-income-just-cause-massive-inflation-fe71d69f15e7 https://medium.com/basic-income/wouldnt-unconditional-basic-...
- varjag 6y ago
  Need a whole lot more to be convinced that basic economic mechanism can be circumvented than someone's enthusiastic Medium blog.
  - aiyodev 6y ago
    That's Scott Santens. Not just a "someone".

aww_dang 6y ago

An inflation of the money supply is by definition inflation. When the supply of money is increased by debt monetization (the status quo) price inflation follows. If productivity increases, all things being equal prices would have fallen and benefited the consumer. Where are the low income people decrying cheaper mobile phone prices? If you suggest that UBI will be fully funded by taxes, then the taxes will increase prices.

aiyodev 6y ago
> An inflation of the money supply is by definition inflation. Not true. Inflation refers to changes in the price of goods in services, not changes in the money supply. This is basic economics anybody who graduated high school should know.
- aww_dang 6y ago
  https://wiki.mises.org/wiki/Inflation#Definitions https://wiki.mises.org/wiki/Inflation#Definitions https://en.wikipedia.org/wiki/Inflation#Austrian_view https://en.wikipedia.org/wiki/Inflation#Austrian_view https://en.wikipedia.org/wiki/Monetary_inflation https://en.wikipedia.org/wiki/Monetary_inflation https://blogs.wsj.com/economics/2011/05/13/inflation-definitions-through-the-ages/ https://blogs.wsj.com/economics/2011/05/13/inflation-definit... "Webster’ American Dictionary of the English Language, published by G&C Merriam Co. in 1864, was the first to formally define inflation as an economic term: undue expansion or increase, from over-issue; — said of currency." https://www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/1997-economic-commentaries/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation.aspx https://www.clevelandfed.org/en/newsroom-and-events/publicat... "its original meaning—a rise in the general price level caused by an imbalance between the quantity of money and trade needs"