RE: Basic Income and the Rise of AI

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Basic Income and the Rise of AI

in basicincome •  9 years ago 

As someone who has studied economics at the masters level, how do you propose to overcome the inflation that will come from everyone earning a base income of X? X is going to become the new 0.

It's an honest question, and no one has ever been able to give me an answer to this. I'm not a masters economics student, but I understand basic supply/demand and inflation and have never been able to get my head around how basic income is ever an option that will be viable in the long term - unless we can get everything is automated.

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  ·  9 years ago (edited)

It's not inflation, no new money is issued.
But of course demand for certain products will go up, resulting in a higher price for those. The difficult thing is finding the balance where the basic income can still cover the basic needs. We're not short in essentials though, so it'd mostly affect (unexpensive) "luxury" articles anyway.