Quote:
Originally Posted by David Sklansky
If there is some sort of guaranteed income there is no need for the government to insist on a minimum wage. If there is no minimum wage fewer things will be automated because that costs money too. If the law of supply and demand determines that some jobs can still be offered at, say $5 an hour, rather than use a machine, some people will take them to put extra (but not vital) money in their pocket and keep themselves busy.
This sounds reasonable in theory. But in practice I don't think its too valuable. For example, $1 / hr or $5, people still break stuff, sue for workers comp, require health insurance if full time.
The comparison is insightful however. Like the minimum wage all UBI will do is create inflation. Supply and demand are relevant in that if people have more money to spend the price of the goods they consume will rise.
It will (ironically) only further marginalize the (hm, what is the right word?) proletariat as the price of subsistence goods rises while, relatively speaking, the price of luxury goods falls.
The best example is gov funding for education. Price of college has gone up as more $$ chase after the same education. The result is the marginalization of the middle class. Now both them and the poor have to borrow to pay for school.
TLDR: UBI is real, likely gonna happen and will only further / accelerate inflation (lol, and a cynic might argue that is likely why it will happen...) and the polarization of society.