
Something Is Happening: Basic Income Create-A-Thons Are Here - 2noame
http://www.huffingtonpost.com/scott-santens/something-is-happening-ba_b_8635392.html
======
shostack
While I love the idea of Basic Income, has there been much progress in solving
for the issue of market rates for rent, goods, etc. simply rising to consume
the extra money?

~~~
dragonwriter
In normal markets where sellers are in competition, the usual expectation from
supply/demand interaction would be that an increase in resources available to
the group pursuing a particular good or service would be to increase the
quantity sold and the market clearing cost. (With knock-on effects of
increasing market clearing price and quantity sold of competitively-delivered
inputs to those goods, including labor.)

With goods supplied by monopolies, the increase in available resources would
be expected just to increase the extractable monopoly rents, but that's a
problem with monopolies that applies to lots of situations, not a problem with
basic income.

~~~
shostack
So how does that translate to rental markets then for housing? Are you simply
saying that more housing would be built to accomodate the new renters at a
rate they could afford?

~~~
dragonwriter
> So how does that translate to rental markets then for housing?

Fairly directly; housing usually doesn't have a monopoly supplier.

> Are you simply saying that more housing would be built to accomodate the new
> renters at a rate they could afford?

Basically, yes; rental housing competes with other real estate uses; more
money chasing rental housing means more situations where those wishing to
purchase (perhaps also [re]develop) real estate for that purpose can outbid
other uses and/or pay the necessary development fees, etc., to do so.

