What I keep thinking about all of this is that an open, functioning, well regulated, free market economy (not defending crony-capitalism like we have had) with targeted generous welfare programs is a far better solution than UBI and other massive fiscal interventions/bailouts/helicopter money. Here is my concern and would love to hear any reasoned arguments as to why it is not a problem.
It is a lot of money, and eventually the money comes out of something, be it the increased prices from increased buying power in the market or the loss of buying power due to slippage against inflation driven by government spending debasing the currency. (they are two sids of the same coin i guess)
It wont happen immediately, this is a massive deflationary shock right now, but surely helicopter money will do what is intended and drive inflation eventually undermining the intended effect of UBI in the first place. The economy is dynamic and reflexive, if everyone knows that everyone is getting x amount of money increased demand and information in the market will drive prices quickly higher.
Government planners will eventually seek ways to mitigate this outcome, perhaps by pegging UBI payments to inflation or enacting price controls on say rents or taxes to take money out of circulation perhaps through a VAT. Either way this is the long-run nightmare of more directly managing an economy from the top down. And I fear that it is a road that leads to a far less dynamic, creative and self sustaining economy.
The intended economic foundation for everyone that UBI seeks to provide may prove to be a short term benefit and eventually become a complex game of trying to control a very complex system.