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.

  • Maggoty@lemmy.world
    link
    fedilink
    arrow-up
    1
    arrow-down
    3
    ·
    5 months ago

    The external stimulus you’re looking for there is the cost of gas to the gas station actually rises. There is no extra cost to landlords. Raising prices in concert with your competition with no reason is the definition of collusion.

    • Kinglink@lemmy.world
      link
      fedilink
      arrow-up
      1
      arrow-down
      1
      ·
      5 months ago

      with no reason

      … If only there was a reason like everyone getting an extra 1000 dollars a month… Oh wait.

      • Maggoty@lemmy.world
        link
        fedilink
        arrow-up
        1
        arrow-down
        1
        ·
        5 months ago

        That’s not a reason. There’s not a carve out in collusion for, “median pay increased”. Reasons are cost push. Which is why corporations spent so much time trying to blame inflation on the pandemic and supply shortages long after those matters were cleared up.