Even assuming this scaremongering scenario, the world would be in a far better place if society assured everyone would be guaranteed a certain income.
Also, the scenario that supports the hypothesis of higher inflation is that more people in society are suddenly able to afford goods and services that were out of their reach without UBI. Can anyone actually put to words why that is undesirable?
- If everyone suddenly has more money (say $2 more per day)
- And milk is a basic necessity
- The milk seller knows everyone needs milk and now has $2 more to spend
- They can gradually raise the price of milk by close to $2
- Consumers must still buy milk at the higher price
- The intended benefit of the extra $2 is effectively captured by the milk seller
The increases in general purchasing power can be absorbed by suppliers of essential goods. If you have just excess discretionary income in the general case, then non-essential goods can bump in price, too.
For the sake of argument, imagine UBI provides everyone with a million dollars a year. That doesn’t make everyone a millionaire. It just makes everyone’s money less valuable.
It’s no different on a smaller scale.