• 0 Posts
  • 43 Comments
Joined 2 years ago
cake
Cake day: August 22nd, 2023

help-circle














  • Or add more competition to the market by having government provide cheap alternatives to food/shelter.

    That’s the solution I think all civilized nations will land at, plus universal basic income.

    So everyone has an option for effectively free (since their UBI covers it) water, food, shelter, and transportation. But standard free market sources can compete to outdo the public options in any ways the public desires.

    There’s plenty still to do, since anyone invotating can outdo the public option, and make some extra money for their effort. While, at the same time, no one has to be quite as dragged down by an aunt with failing health who cannot work, anymore.

    And any mega corporations that try to force everyone into closed lousy situations have to at least compete with the public option.

    Of course, any mega corporations allowed to thrive will immediately try to kill off public options, which we do already see happen.




  • Well the baker, knowing that everyone has twice as much money, puts his prices up because he knows the market can bear it. That’s the way I reason it.

    The good news is this simply doesn’t happen (in civilized modern countries).

    People with more money don’t buy twice as much bread, they buy other things.

    The bread maker is still competing with milk producers and video game makers and artists.

    You can read about price elasticity for more details (and to not just take my word for it.)

    Highly inelastic goods (water, transportation, eggs) are the most likely to have runaway price increases.

    But civilized countries already have public options to supply these items at cost :public water, public transport, food stamps.

    This means we already have the necessary buffers against any impact by UBI. Any provider of an inelastic good who raises their price too far loses business to the public option.

    Schwinn and Ferrari will all see slightly more sales with UBI as a few people use their additional income to purchase a bicycle or a supercar, but the bus lines must still run to keep them honest.

    The risk is minimal because we already know what public consumption of these goods looks like, when they’re free or heavily subsidized, in each civilized country.