UBI is implemented tomorrow. Every citizen gets $1000 per month.
Landlord now knows you have an extra $1000 that you never had before. Why wouldn’t the landlord raise prices?
Now you have an extra $1000 a month and instead of eating rice and beans for a few meals you go out to a restaurant. The restaurant owners know everyone is eating out more so why not raise prices and maximize shareholder profit as always. The restaurant/corporation is on TV saying, “well, demand increased and it is a simple Economic principle that prices had to increase. There’s nothing we can do about it”.
Your state/country has toll roads. The state needs money for its deficit. UBI is implemented and the state/country sees it as the perfect time to incrementally raise toll prices.
Next thing you know UBI is effectively gone because everything costs more and billionaires keep hitting higher and higher all time net worth records.
Not the same, IMO. Stimulus checks are not for everyone, there are rules, which means that they can’t raise prices universally, because not everyone is getting the money.
I could be wrong but I thought this was also how UBI would be implemented? It would just be a safety net for those without employment?
Edit: I just googled it and I am indeed wrong. What I was thinking of is called a guaranteed minimum income. That makes a bit more sense to me than a UBI, but if it wasn’t apparent I’m obviously not well read on the topics.
Removed by mod
May I advise you to stop calling people daft and then simplifying a complex issue? Or perhaps don’t call other discussers daft at all?
Anyway, the difference is in execution: when only a portion gets the money, corporates can’t take the whole stimulus from you, because not everyone has the same amount of money.
When everyone gets a stimulus, it’s basically free money for corporations. If everyone gets $1000, you can get corporations will find a way to raise their prices by $1000 over a short period of time.