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RE: Is Universal Basic Income A Good Idea?
How would it cause inflation?
Isn't that caused by printing money?
This would just be redirecting money that already exists.
We government "gives" money to so many programs and corporations already without them having to do much "work" to receive it.
How would giving it directly to people be any different?
Well, I think a sense of general entitlement would incentivize a more "careless" spending behaviour and money management. This in turn creates inflation of consumer prices which would require the state to adapt basic income levels and so forth and lead to a vicious cycle of money devaluation.
I'm not understanding how increased spending behavior would create inflation of consumer prices.
It's essentially impossible to imagine that spending behaviour and money management could be any worse than it is now. Personal (and national) debt is at record highs. But the reality of capitalism is that you need that sort of carefree spending to prop the whole system up.
Absolutely right @luzcypher. And even then, printing money doesn't necessarily lead to inflation.