There is another issue besides the labor/wage effect on price, that aggregate demand is increased and therefore at current prices aggregate supply does not meet demand. Aggregate price levels should increase (keeping it at econ 101 since we could speculate about investment at this point).

edit: consumption increases despite the distribution being balanced since it's assumed that the transfer is from a minority of tax payers with significant income/assets to a majority that sees a substantial increase to their minimum guaranteed cash flow.