Right now, everyone is already consuming these necessities
Uhm, no? I mean, those poor enough who cannot get those necessities are not partecipating in that market. If they suddeng gain the power to do so, you would have an increase in demand.
That leaves 3, inflation. I am not an economist, but as far as I understand this shouldn't be a significant factor.
I guess it depends on where the money for UBI comes. If you just redistribute the money that is already spent elsewhere, then yes, inflation is not an issue.
Instead if you just print bonds to keep up with the extra expenses, then it might become a problem...
Some people do die from poverty, so there we might expect an increase in purchases following UBI.... but this isn't a big number,and therefore not a big increase, iff we are assuming that 'necessity' means food, water, enough shelter that you don't die.
In fact, UBI might decrease some costs, for example, medicine is often a necessity, and if people choose to get health insurance (or better health insurance) with their new funds, this may have the effect of reducing overall costs (Obamacare is banking on this effect, on a larger scale).
However, UBI might be...
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