A minimum to live
A minimum to live
Out of context: Reply #34
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- ukit20
@ _niko
I don't think prices would go up just because you give people money. If you gave everyone a million dollars, the cost of a loaf of bread would not increase by a million dollars, canceling out the payment. The way I understand it (caveat: also not an economist :) prices go up because of either increased labor costs, or in some cases increased demand. It's arguable whether basic income would lead to either of these happening. In terms of labor cost, it's potentially a net positive for businesses since usually basic income would be tied to more flexible labor practices (since people have more security).
- no but the breadman might increase it by 25ยข figuring that people have more disposable income and wouldn't mind._niko
- multiply that by all the grocery stores, gas stations, coffee shops, restaurants ect and it becomes a wash._niko
- I notice this phenomenon with real-estate, interest rates go down and drive the house prices up, and the inverse happens when the interest rate goes up._niko
- ...happens when the interest rate goes up._niko
- but, the flip side is that with more disposable income, there might be more breadmakers, thus adding competition and keeping prices low._niko
- ...keeping prices low._niko
- The breadman can try to do that but what happens when the other business down the street doesn'tukit2
- You're basically describing a system of collusion where companies arbitrarily set prices however they wantukit2
- Your RE example is purely supply and demand - lower interest rates = more demand, inflating pricesformed
- Part of the inflation equation in fiat currency system is also demand and supply of money.yurimon