Many places where I have seen people wanting to introduce UBI, increased (flat percentage) tax is often also suggested. The percentage is then suggested to be set at a level so that:
- People at low average income will have more money (the UBI-increase will be higher than the tax-increase)
- Average income: You get as much as before.
- Higher income: you pay more in taxes than you get from UBI.
Basically it ends up being a way to move money from the ones with higher incomes to the ones with less. It will ofc still give some inflation as poor people have more funds for basic needs. But other people will have less - and the average person just as much as before. Limiting the effect of the inflation.
Even if average inflation doesn't go up, when you look at specifics it doesn't look very good for the poor, the very people it's supposed to help. Take your example.
- Low income housing costs will probably inflate because all poor people will have an extra $1000 to spend.
- Avocado costs probably won't rise, as middle classes will have the same spending power
- Bentley and yacht prices might decrease as the rich have less spending power.
So you haven't helped the poor. You've created the usual issue with socialism/communism that in the end all it does is pull everyone down, rather than lift anyone up.
If that's your goal, fine, admit that you hate the rich. But the marketing promises of UBI are not that, they are about helping the poor.
I will admit that I don't have enough understanding about macro-economics to know how everything will be affected. But inflation on low-price housing does make sense, but I will admit I don't know enough about the field to understand to what degree. So at this point I just wanted to state the points I've heard other people make related to UBI. (basically that is also comes with increased taxes).
My own opinion is that I don't know the correct way to do economics in the future. But I do think that we at some point should think very different. I don't think the current system works out for most people in the future. And UBI looks more like a band-aid than an actual fix.
- People at low average income will have more money (the UBI-increase will be higher than the tax-increase)
- Average income: You get as much as before.
- Higher income: you pay more in taxes than you get from UBI.
Basically it ends up being a way to move money from the ones with higher incomes to the ones with less. It will ofc still give some inflation as poor people have more funds for basic needs. But other people will have less - and the average person just as much as before. Limiting the effect of the inflation.