Earlier quoted context omitted.
When I said "in line" I didn't mean 1:1 or 100%. I may have picked a bad phrase there, I was intending to say that there would be a strong correlation between the two and that a majority of the extra Monet would go towards price increases. I forget the general rule when it comes to companies, but there's a general percentage that is often how much a price increase on a company is passed on to consumers. If a company'…
> When I said "in line" I didn't mean 1:1 or 100%. I may have picked a bad phrase there, I was intending to say that there would be a strong correlation between the two and that a majority of the extra Monet would go towards price increases. If so, then explain how you're making the jump from "prices increase some" to "you would need Marx style price controls" or "otherwise UBI will fail to cover the necessities"? If…
With regards to my claim that we'd need strong price controls, a UBI needs prices to the basics to remain stable. I won't go down the road of trying to define what "the basics" are here, that's a huge rabbit hole so let's just leave it at the broad category in general.
If everyone can afford the basics, there is more demand for those items. Supply will likely increase eventually and eat up part of the demand increase, but the rest goes to prices. When those prices go up, the UBI would have to increase to match. The whole cycle would go on in a loop unless there's some lever for the government to control the prices of anything deemed a basic necessity.