> I still don't get it. If rich people own land with value X, and you tax it and produce Y amount that gets distributed to everyone, doesn't that Y directly increase the cost of food and shelter or any other thing that the poor people would want to buy?
You seem to be presuming inelastic supply of all of the stuff they'd ever buy. This is relatively true for some stuff (housing supply in the largest urban markets).
But, most of these things are elastic and/or have larger world markets to bid against. Food, consumer goods, housing in other markets, etc. Therefore, while a UBI would be somewhat inflationary, it would still increase the purchasing power of the poor and lower middle class.
> The only things it can buy are things that are subsidized by the government anyway and exists already, such as low income housing and food-stamp-eligible food.
This isn't true, but this is the biggest benefit to UBI: unwind the administrative apparatus involved with entitlements, and remove the lower income regions which have over 100% effective marginal tax rates. A complicated patchwork of programs can be simplified and reduced in scope (SNAP, section 8, EITC, disability insurance, etc..) and we can ensure that people always have a positive marginal incentive to work. Milton Friedman himself proposed a UBI in a form of a "negative income tax" to avoid these economic distortions.
You seem to be presuming inelastic supply of all of the stuff they'd ever buy. This is relatively true for some stuff (housing supply in the largest urban markets).
But, most of these things are elastic and/or have larger world markets to bid against. Food, consumer goods, housing in other markets, etc. Therefore, while a UBI would be somewhat inflationary, it would still increase the purchasing power of the poor and lower middle class.
> The only things it can buy are things that are subsidized by the government anyway and exists already, such as low income housing and food-stamp-eligible food.
This isn't true, but this is the biggest benefit to UBI: unwind the administrative apparatus involved with entitlements, and remove the lower income regions which have over 100% effective marginal tax rates. A complicated patchwork of programs can be simplified and reduced in scope (SNAP, section 8, EITC, disability insurance, etc..) and we can ensure that people always have a positive marginal incentive to work. Milton Friedman himself proposed a UBI in a form of a "negative income tax" to avoid these economic distortions.