Is this only an issue if you print money to pay for the UBI? If UBI is payed for by taxes then it shouldn't devalue the currency.
So this is an issue for a coin but not necessarily UBI, no?
So this is an issue for a coin but not necessarily UBI, no?
The amount of money the government can spend without causing inflation has very little to do with the level of tax revenues they collect.
One way to think about it is that the economy has a certain amount of spending that it can productively respond to. Beyond that level of spending, you start running into problems such as inflation, interest rates that are too high, etc.
It doesn't matter whether you took any money from the rich to fund that spending because the rich people weren't going to spend very much of their money into the productive economy anyway. The productive economy can still absorb the same amount of spending as before.
But you're right that there does have to be some kind of mechanism to keep the currency stable and I don't see such a mechanism in Circles.