>> Not sure, but wouldn't basic income induce increased prices for commodities?
>Yes, it would be expected to shift the demand curve somewhat, because you'd be redistributing income to people with a higher propensity to spend, increasing demand.
Which also has the happy effect of raising money velocity int he system. By substantially reducing demand constraints you increase overall economic activity, push money through the system faster and grow the overall economy significantly. The economy doesn't work like a household budget; the affordability of this sort of measure is rather different from what one might otherwise expect.
>Yes, it would be expected to shift the demand curve somewhat, because you'd be redistributing income to people with a higher propensity to spend, increasing demand.
Which also has the happy effect of raising money velocity int he system. By substantially reducing demand constraints you increase overall economic activity, push money through the system faster and grow the overall economy significantly. The economy doesn't work like a household budget; the affordability of this sort of measure is rather different from what one might otherwise expect.