Would basic income instead reduce the inflation union wage rises would

[applegrove]

Last edited Wed Dec 2, 2020, 01:27 PM - Edit history (2)

cause? You know because a country can handle a much bigger debt if inflation is low. Which is good and needed now. I'm trying to think it through but can't.

Edited: If basic income is less inflationary than wages you could do that for the poor and working class, have union wages for the middle class, and the rich do what they do why paying appropriate taxes.

[Mopar151]

1. I see the savings from administrative costs as a big plus.

Instead of a patchwork of half fast SSI, AFDC , def, ghi, little programs, all with complex qualifications, a UBI for anyone who asks would save a LOT. I'm sure we can work out a tax repayment thing for anyone who scores big $$$$$$ while on UBI.

[applegrove]

2. Yes. That goes without saying.

[Mopar151]

3. The Threshold for side money needs to be high.

The UBI would be a godsend for the underemployed, and might be a work around for those minimum wage jobs that just don't have living wage revenue.

[Voltaire2]

4. Wages have lagged far below increases in

productivity for decades - 4 decades - and unions are now a minor part of the workforce -13%. So I don’t understand the premise.

On the other hand, attempts to demonstrate that real world wage increases, for example increases in the minimum wage, cause a corresponding increase in inflation generally fail to do that.

[ProfessorGAC]

5. Not Sure There's Evidence That...

...wage increases have that much leverage over inflationary price pressures.
It is true in a vacuum, if the world worked like Econ 101.
The problem is that data show higher wages lead to per capita productivity increases. Thus, the greater income by those workers increases monetary velocity chasing more goods.
It's not that tenuous a scenario to reach equilibrium that still keeps inflation low.
The notion that wages create great pressure on inflation is a Chicago school canard with no real world evidence to support.
Not that I oppose BI, but your motivation is flawed. We could do both.

[Voltaire2]

6. indeed.

It is just neoliberal cant used to justify repressing labor.

[applegrove]

7. When wages were going up and inflation, government used to up interest

rates to slow down the economy. That way workers and the rich fought inflation together. They let the steam out. That was in the 80s and 90s. Then the right got wages to stagnate and there was no more forced slowdowns and the stock market roars. Workers do all the work of fighting inflation. Just hoping we have all the tools as we embarque on a new situation. If Basic income does not increase inflation in the same way wages do, that would be good to know as the working class and poor could get their money that way. The middle class through better union bargaining power. And the rich however they do it all the while paying adequate taxes. It could be a three-fer.

[ProfessorGAC]

8. Again, Scant Evidence

I agree that's what they did. And if inflation is runaway, that would be useful.
But, the math suggests that increasing rates had a minimal effect comparex to the per worker productivity gains in the mid 70s to late 80s.
The volcker fed liked to take credit for tamping down inflation and a few right wing economists still credit him.
But, the econometric evidence is marginal.

[Demsrule86]

9. Since we are in a depression we have to worry about deflation not inflation.

We have had little inflation since 08 which I don't believe we ever recovered from fully thanks to the evil Republicans.