Comment Re:I hope UBI gets implemented... (Score 1) 275
"Or...
THIS.
The obvious outcome of any real government program is... inflation by exactly the cost. So why is not the FIRST thing any government program proponent explain how is it that it won't happen?"
Because, that's not the obvious outcome.
As you explain in lenght right after that, government programs that go either to non-competence market niches (i.e.: aircraft carriers) or right to big corporations' pockets do not naturally create inflation. But giving money "to the poor" **precisely because** "they will spend it, dumping money into the bottom of the economy." will DO produce inflation at the very least in the short/mid term.
Note I'm not considering here the ethics of any of those situations, just the economic fact: when you increase general purchasing power in an otherwise stable market, prices will rise.
Just look what drove us into 2008 crisis: by means of mortage easing, money was effectively brought from "the future" to increase purchasing power to those that previously didn't have it -as such is an scaled-down UBI experiment (scaled-down in that it was not "general purpose money" but since shelter is already such an important part of everybody's live, and such a big share, directly and indirectly, of total economy, shares enough similitude to "real UBI" as to be considered an example of what would happen). The result was the obvious: first, a strong inflationary movement in the real state sector, then (that's out of direct UBI's scope) a crisis when the future the money was brought from became present and the money couldn't be returned.