Hello, I’m not that informed about UBI, but here is my arguement:
Everyone gets some sort of income, but wouldn’t companies just subside the income by raising their prices? Also, do you believe capatilism can co-exist with UBI?
While I’d prefer to fully dismantle the whole capitalist system, I can accept UBI as the most realistic compromise we’re likely to get in our lifetimes.
I’d be happy to see our kids get it in their lifetime - I lost hope to see it myself with how backwards my country is
Here’s a good breakdown: https://econreview.studentorg.berkeley.edu/unboxing-universal-basic-income/
As for my thoughts, yes there would be a noticeable impact at first, but UBI would help stabilise and strengthen the economy in the long term because purchasing power and demand will increase. If supply can keep up, prices won’t go up. Companies can’t just raise prices as that’s called price fixing. Antitrust laws should be there to prevent that, but your mileage may vary depending on your country. That means that if some companies decide to raise prices because of more purchasing power, some smart company is going to charge less to gain more market share. So we’re still doing capitalism, but there’s a social safety net.
Also, people will still go to work to find purpose. Except “work” in this case could mean the freedom and flexibility to contribute locally, or take higher risks like entrepreneurship or becoming an artist.
That means that if some companies decide to raise prices because of more purchasing power, some smart company is going to charge less to gain more market share.
Here is how this turns out in reality: Company A raises prices because they are greedy bastards. Company B is then impressed with the sheer display of dominance by A and raises prices accordingly to “keep up”.
Your thinking is correct and that’s how it should work, maybe it even did in the 60s, but it just isn’t the case anymore.
You’re forgetting “customers see how much prices are up, and just stay home” or “company C, looking to break in, undercuts A and B and changes the market.”
A real UBI is a great fix for capitalism, since it makes “f it, I’ll just stay at home” possible.
