That's not the direct cause. Were there sufficient accommodations for them all the prices would not go up as much. It is the SCARCITY that is created by DEMAND that causes the prices to go up.
That's exactly what I am saying:
From my earlier reply:
"Because everybody is attempting to use the same limited resources within the very limited area of the area where employment can be found, prices are driven up."
why there are five million people is irrelevant.
No it's not irrelevant, because if you remove the reason for those five million people to be clumped up in one small area, cost of living will go down and disposable income will go up.
They could all be looking for housing in NYC because they like smog and being shoulder to shoulder with their neighbor and have no interest in working in the city and the prices would still be high.
Availability of work is a well known factor for cities to attract people. If people on only receive UBI want to live in the city, they will pay a huge amount on rent. There is a possibility that people spend all their UBI on rent and want to live that way.
There will also be a significant group of people who don't want to spend 100% of their income on rent, only live in the city because that's were most of the work is, who will move out to where cost of living is lower.
Uhh, once again, wrong. You add another layer of administration (who should be on the recipient list, who should be removed, who is faking a second or third registration, who doesn't meet the restrictions that any welfare system has to have, etc.) to an existing welfare system
This information is already present with Inland Revenue; every registered tax-payer will receive UBI. The only place where this needs to be maintained is in the IRS database. All information structures maintained by the current (separate) wellfare system, its employees and maintenance on the information system disappear.
(that you can't eliminate because UBI won't cover every situation
UBI is not supposed to cover every situation. It's supposed to promote certain human behaviour. I am not pretending that UBI will solve world hunger or create world peace.
Uh, yeah, moving people out of the cities into the rural areas is moving the problems they have (unemployment, etc) into someone else's backyard. How can you claim that it isn't?
As I mentioned above, even people on just UBI will be consumers of rental accommodation, food and services, this alone will increase economic activity for the existing population of the area where these people move to. How do you think basic economies get started? Demand creates supply. Whether these people are unemployed or not is irrelevant, since they have money to consume the services they need in the areas where cost of living is lower anyway. If these people were unemployed and had no income, yes, they would be a burden; this is not the case.
If you think government is going to get smaller and cost less when you start increasing handouts, you have ignored history.
Something like UBI has NEVER before been done in history. Please point me to an implementation of UBI that has gone completely wrong?
Wellfare != UBI.
If people have enough money to start a business when they're living on UBI then it isn't a BASIC income, now is it?
Let's say for example that UBI=$1000/month. Mr. A lives in New York, where rent is $800m, leaving him $200/m for food and services. Mr A moves to Nebraska. UBI is still $1000/month, while rent is $500/m. Food may be somewhat cheaper, services possibly somewhat more expensive; let's assume this will remain $200/m. All of a sudden Mr A. has a disposable income of $300/m. Maybe not enough to finance a manufacturing plant, but definitely a bit more room to save up and start something small if he wants to. Though he might just blow the $300 on other things, which means economic activity in Nebraska now increases by $300/m, because this single person moved there.
The thing is that the amount of UBI does not change depending on where one lives, while people should still be free to settle somewhere else. If people who are receiving UBI are bound to one location (e.g. living in New York and not allowed to leave, because they'd otherwise lose UBI), the result would indeed be increase of prices, resulting in inflation.
People moving to parts where cost of living is lower is needed to offset any inflationary effects from UBI.
The people who receive UBI are no longer 'victims' or 'free-loaders' if they don't happen to have work.
This is irrelevant to the costs of the program.
Irrelevant to the cost yes. People's perception and psychological state when completely dependent on what other people view as charity definitely affects the receiver of said perceived charity (as well as the people who perceive that someone is only able to 'exist' because of their hard work and hard-won tax dollars.
This is how society views them, not what society has to pay to keep the freeloaders fed and clothed.
And you're proving my point right here. Once every tax-payer receives UBI, this stigma will no longer be there. People who are working and paying taxes no longer have to worry about the 'free-loaders' and 'free-loaders' no longer have to worry about being perceived as such, because everyone receives UBI.
Dividing up a population will have polarising effects, that result in an 'us' vs. 'them' mentality. Good for politicians to rile up certain parts of the population to rise to power, not so much for the population in general, regardless whether they are in the 'us' or the 'them' camp.
Finally. This has never been done before; it's a thought experiment that may or may not work, on the other hand the current economic model, along with increasing amounts of automation, will result in increasing parts of the population being out of work.
Leaving these people to rot out of sight, means that you're disenfranchising an increasing part of the population. You can build higher walls every year to keep more of the 'rabble' out, but at some point, these people will want some of the wealth available to the people who are still part of the economic process. Possibly not this generation, but this scenario becomes increasingly likely with time.
Essentially you have the choice between what essentially amounts to slow genocide and weather the effects of that, which seems to be the road we're on now, or you ensure that everyone participates in the economic model.
I know I prefer the second option.