How would that work from a free market standpoint? What I mean is, when everyone has a baseline amount of money, the relative scarcity is diminished and the market prices will inflate as the value of money(real & perceived) decreases.
I cannot recall the historical character at the moment, but I recall reading of a benevolent king(central or south american?) who give all his subjects generous amounts of gold to the effect that it crashed their economy. Anyone?
As far as I know, everyone has a baseline amount of money in our society -- it's just that it comes from a lot of disparate sources. Some people get their baseline from a combination of housing vouchers, food stamps, medicaid, and other entitlements; others get their baseline from working 2 McJobs; others have good jobs that provide way beyond the baseline.
If the baseline is provided in a more straightforward way (and, presumably, taxes on above-baseline amounts are raised accordingly) there may be very little economic distortion from the present state.
Do it slowly. Yes inflation can happen due to increased demand , but raising the amount of money slowly enables increased supply, which will cause prices to go down.
It doesn't work in supply restricted things like real estate thought, so other solutions might be needed for that market.
>What I mean is, when everyone has a baseline amount of money, the relative scarcity is diminished and the market prices will inflate as the value of money(real & perceived) decreases.
"Inflation is always and everywhere a monetary phenomenon"?
I guess so, I am not an economist. That seems to be the cycle repeated since the dawn of human interactions, however. With scarcity comes demand, market sets price... and the rest of the spiel. A game that has been gamed long before we came along, but yeah, that seems to be how it works historically.
Your previous post claims that guaranteed minimum income may cause inflation. I replied with a quote that inflation is always and everywhere caused by monetary changes.
My point thus being that a guaranteed minimum income would not cause inflation.
Prices change in response to market forces, yes.
But micro price changes are not inflation.
Inflation is a macro level phenomenon, caused "always and everywhere" by monetary changes (debasement etc).
I cannot recall the historical character at the moment, but I recall reading of a benevolent king(central or south american?) who give all his subjects generous amounts of gold to the effect that it crashed their economy. Anyone?
edit:reword last sentence