If people suddenly have more money out of nowhere, shop owners will start raising prices to compensate. So the long-term effect is that how much goods people can afford doesn’t really change, but the value of their savings keeps on dwindling. Unless there is a fault in my logic or an additional policy meant to prevent this, UBI just sounds like a way to make sure people never retire because their savings are made worthless by inflation.
there’s a certain amount of money in the economy. let’s say $1 million.
of that, $500K belongs to the billionaires and $500K to the average people. Which means the population owns half of all.
Now, you distribute another $1 million among the average people.
Now, the billionaires still have $500K, but the people have $1.5 million, which is 3/4, which is more than 1/2, so it’s an improvement.
If people suddenly have more money out of nowhere, shop owners will start raising prices to compensate. So the long-term effect is that how much goods people can afford doesn’t really change, but the value of their savings keeps on dwindling. Unless there is a fault in my logic or an additional policy meant to prevent this, UBI just sounds like a way to make sure people never retire because their savings are made worthless by inflation.