This is exactly wrong. The cost basic goods would increase. Basic Income would immediately have an inflationary effect as the money supply for these good would be expanded drastically.

The Employer would not see as much benefit as you'd think as presumably he would be amongst the class of people/entities (including the middle class, upper class, and corporation) which would be paying for this indirectly in the form of taxes.

Alternatively, if Basic income is debt finance (and not financed directly through taxes), incurring more debt also has inflationary effects.