"We'll just give everyone money. Nobody will demand more and the promise of more money won't become the key election issue as governments directly try to buy off their citizens for votes. Nothing can go wrong."
Huh why would you do that!
"AI!"
It's like a comedy but it's not actually funny, just full of clowns.
I for one don't understand how it won't cause mass inflation. Every reason I read for why it won't is usually along the lines of "we did an experiment with 100 people, it turned out great!"
100 people != the population of a country
America already gives away vast sums of money to various people and programs, over $2 trillion annually. UBI is just a way of saying, "here's your share, spend it how you wish".
A pipe dream that doesn't actually reflect human behaviour just the inclinations of some to demand others' things while calling them greedy.
aka, he is proposing to give both impoverished people and billionaires UBI
A car factory in 1950 employed so many people to make X cars. The factory of today employs far less people to make the same amount of stuff. Up until now we've all bought every increasing quantities of stuff so we've been able to absorb that extra productivity.
What happens then if our capacity to consume extra stuff is met? Or what happens when some proportion of the populace is now unemployed due to automation. They're kind of 2 sides to the same coin. Once consumption capacity is met, productivity increases just lead to increasing unemployment.
Of course you could leave them to rot. Or you could distribute the benefits of increased productivity to everyone.
Are we there yet? No, but we're using more resources than we should so we should probably hope that we reach that limit sooner rather than later.
So to answer your question, there wouldn't be extra inflation, because there wouldn't be extra consumption.
Andrew Yang's campaign states he believes that the UBI he is proposing will boost the economy because people will spend it. That's definition of consumption, right? Increased spending?
UBI as suggested can't possibly ever work without being massively inflationary. It is indeed economic nonsense.
There are 3 kinds of people who espouse UBI. The dishonest political swindlers, the misled, and those who would vote for anyone who promises them money.
Wait until you find out how many support UBI and no immigration control.
Manufacturing is just like farming, except delayed. How many people are needed to plant and harvest a huge field?