Printing Money For UBI

[Martin Hash]

I’ve been watching a lot of doom-n-gloom YouTube videos lately saying it’s too late to do anything about the “Financial Crisis.” I say bullshit, print more money. Of course, immediately folks start screaming “Inflation!” but there hasn’t been inflation for the $60 trillion we’ve printed so far; as long as productivity equals consumption, inflation is held at bay, and obviously people don’t need the $60 trillion, they just imagine it’s there.

Redistribution of wealth can also be through printing money as long as everyone is given the same amount. This actually supports the idea of a UBI; print it. The down side is loss of productivity from slackers deciding not to work. Maybe only give the UBI to people who do?

[Hastur]

I don't even understand money anymore. It seems like something fundamental is broken. The whole thing with derivatives somehow boggles the mind.

[SuburbanFarmer]

This is the late cycle. Debt piles on debt, and speculators get completely out of control. Eventually, something tips it over and money is worthless. Start over, new currencies, begin again.

Just hope that you can feed the kids while it happens.

[DBTrek]

Seems like printing by money and handing everyone $30k would simply result in prices going up to reflect that everyone has a baseline of $30k.

Not unlike banks lending money to anyone who wanted a house regardless of ability to pay - which was pretty much UBI for houses. All that happened was home prices went up considerably on the supply side to reflect the fact that everyone had access to more cash on the demand side.
/shrug

[Martin Hash]

Seems like printing by money and handing everyone $30k would simply result in prices going up to reflect that everyone has a baseline of $30k.

Not unlike banks lending money to anyone who wanted a house regardless of ability to pay - which was pretty much UBI for houses. All that happened was home prices went up considerably on the supply side to reflect the fact that everyone had access to more cash on the demand side.
/shrug

There has been little inflation so far after a couple decades of printing money because Market Pressures ensure enough production, however inflation WILL occur on things where SUPPLY can't meet DEMAND. House prices in Seattle and Portland are through the roof but not in most places.

I still don't like UBI but it's a way to redistribute wealth. So far money printing only benefits The 1%.

[Fife]

I think it was Stephen Green who said, "the only thing socialists never run out of is zeroes."

[DBTrek]

How do prices *not* rise when the money supply of every citizen jumps by $30k?

That’s what the part of UBI I really don’t understand. When everyone has 30,000 extra “free” dollars, each of those dollars is worth less. In fact, each dollar is worth 30k x 315million (people) less than before.

How do you stop prices from reflecting that reality and avoid becoming the Weimar Republic with your wheelbarrow full of cash for a loaf of bread?

[SuburbanFarmer]

How do prices *not* rise when the money supply of every citizen jumps by $30k?

That’s what the part of UBI I really don’t understand. When everyone has 30,000 extra “free” dollars, each of those dollars is worth less. In fact, each dollar is worth 30k x 315million (people) less than before.

How do you stop prices from reflecting that reality and avoid becoming the Weimar Republic with your wheelbarrow full of cash for a loaf of bread?

Inflation would match the increase, but it wouldn't skyrocket.

It would probably tip over the apple cart though, and destroy the economy through the derivatives markets.

[Martin Hash]

Why is the argument "there will be inflation" when the OP gives a HUGE example of there being NO inflation? Preprogrammed robots.

[DBTrek]

Why is the argument "there will be inflation" when the OP gives a HUGE example of there being NO inflation? Preprogrammed robots.

Because the OP mentions the printing of $60trillion, but makes no comment as to whether that money is in circulation or not. Obviously printing money, and distributing printed money evenly among the populace are two entirely different activities. $60 trillion locked away in Scrooge McDucks vault means nothing. $60 trillion evenly divided among 315 million consumers who will spend it on goods means a lot of economic ramifications.