Stagflation is caused when people with negative productivity have purchasing power equal to people who are productive for goods and services.
For instance, if there are three hundred people who work, and one hundred people who don't, those three hundred people become in competition with the remaining one hundred people for goods and services due to UBI.
Eventually, suppliers raise the prices of goods in response to the competition among consumers, causing inflation over prices.
HOWEVER; since the UBI also by DEFINITION isn't a job creating program, it creates unemployment because the remaining one hundred people don't need to work but still can get the benefits of those who work.
Literally, a UBI wrecks economies faster then even North Korea, and SOVIET economics isn't even based on that concept.
However, now that I know the UBI doesn't have a coherent answer to the problem, I got a clear picture.
Thank you for the response.
PS: I identify as Market Socialist, and would tax the shit out of Capital for a "New" New Deal.
ValjeansGhost2 karma
Issuing taxes? Really?
Stagflation is caused when people with negative productivity have purchasing power equal to people who are productive for goods and services.
For instance, if there are three hundred people who work, and one hundred people who don't, those three hundred people become in competition with the remaining one hundred people for goods and services due to UBI.
Eventually, suppliers raise the prices of goods in response to the competition among consumers, causing inflation over prices.
HOWEVER; since the UBI also by DEFINITION isn't a job creating program, it creates unemployment because the remaining one hundred people don't need to work but still can get the benefits of those who work.
Literally, a UBI wrecks economies faster then even North Korea, and SOVIET economics isn't even based on that concept.
However, now that I know the UBI doesn't have a coherent answer to the problem, I got a clear picture.
Thank you for the response.
PS: I identify as Market Socialist, and would tax the shit out of Capital for a "New" New Deal.
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