4 ms·
If the cost of labor goes up, increasing the consumer cost of goods (inflation) is only one way of offsetting that labor cost. That cost can also be offset by A
by breadbreadbread 5y ago
If the cost of labor goes up, increasing the consumer cost of goods (inflation) is only one way of offsetting that labor cost. That cost can also be offset by A) Reducing shareholder profits B) reducing management profits C) government subsidies D) reducing capacity.
Companies in America are incredibly top-heavy, and a more stable economy could emerge if those resources at the top are distributed down to the worker. If implemented properly, UBI could push companies to share more of those profits with their workers without affecting the buyer.
Additionally capital generates more social value when it circulates (when its being spent) vs when it is stagnant (when it sits in a bank). Even if things are more expensive, more people having access to things allows local economies to grow