Why would the price of necessities rise?
There are three reasons why the price might go up:
Right now, everyone is already consuming these necessities, so if UBI is introduced, demand will not go up. So 1 would not be true.
Supply could go down if enough people stop working. But if this reduces supply of the necessities, there is a strong incentive for people on just UBI to start working again. There is also increasing automation. So I find 2 unlikely.
That leaves 3, inflation. I am not an economist, but as far as I understand this shouldn't be a significant factor.
if this reduces supply of the necessities, there is a strong incentive for people on just UBI to start working again
Technically, there is a danger that the tax rate for the working people may become so high (imagine e.g. 99%) in order to support the UBI, that when a person finds out they are unable to survive on UBI alone, they are screwed anyway.
It may happen to some people sooner than to others because not everyone has the same expenses. For example people with health problems may need to pay extra for medicine. We can get situation where UBI allows y...
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