Could a universal basic income cause massive inflation?

5 answers

  • Real-world evidence suggests that basic incomes actually decreases inflation.

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  • If basic income leads to increased demand of goods and services, we would only see prices increase for those where supply cannot increase to match the new demand. So rare/luxury items might indeed go up in price, but basic essentials would not.

    Sources
  • Basic income should actually be indexed to match or beat inflation.

    Sources
  • If a basic income were able to pay for itself through a value added tax, the liquidation of other social services, and a general stimulation of the economy, the money supply circulating in society would not increase substantially. This would produce little to no inflation.

    Sources
  • Basic income could actually result in increased wages more than increased prices.