Can UBI lead to price increases?
It's crucial to know if prices will increase because of UBI. The argument against UBI is that it would create inflation by shifting resources from high earners to low ones. This is a legitimate worry, but there are other approaches to taming inflation that are more effective. Having access to a central bank account could be a useful tool for regulation. Deflation is when prices across the board start going down. This typically happens when demand for a product or service decreases, leading a business to lower its price. Deflation can also result from technical progress and heightened productivity. These advancements allow businesses to increase output while decreasing expenses, thereby saving both time and money. When manufacturing costs are low, businesses have more room to reduce prices in an effort to win over customers. This has a domino effect on output, wages, and consumer spending, all of which go down as a result. Higher unemployment and slower economic development te...