How would a Universal Basic Income impact housing prices, wages, and general inflation?

Dear Professor Wolf, I was recently involved in a discussion comparing the benefits of Universal Basic income vs. Full Employment. I understand you are generally more in favor of a universal employment program, but I was wondering if you could address some concerns about the Idea of a Universal Basic Income that came up in the discussion. Would providing a Universal Basic Income for Americans create an increase in housing prices, a decrease in wages, or general inflation? Thank You, Scott from Brooklyn, NY

Official response from submitted

There are no simple one-to-one connections or cause/effect relationships between creating a UBI for Americans and any other specific economic event (such as those you listed). All economic events have many diverse contributing factor. If we had a UBI iot would add its effects to all the other influences on economic events, but there is no way to know in advance of each moment's specific set of other influences, what the outcome on any event will finally be. People who tell you how any A will definitely cause a B have not understood the multi-causality of all things, events, etc.

Yes, I am very opposed to isolating one portion of a healthy, adult population as somehow exempt from the work that is required ofd the rest of that population. It is profoundly socially divisive and I dont see why that is desirable or worth risking. If we have more people that jobs that need doing, then the way to manage that situation is to reduce the working time of all workers. That way all have work while all enjoy its reduction in favor of free time.


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  • Richard Wolff
    responded with submitted 2017-01-22 17:39:06 -0500
  • Ira Leifer
    commented 2017-01-22 13:09:32 -0500
    interestingly, you addressed this on the Big Picture just a few days ago, and certainly one can hope for a stealthy and peaceful change. But when the previous economic systems ended, were the purveyors of the new brazen or meek? The US civil war had many causes, but the end of slavery in the US was not gentle. OTOH, in europe, it was. However, in Europe it was a small part of the economy and threatened few entrenched interests.
  • Ira Leifer
    tagged this with Important 2017-01-22 13:09:31 -0500
  • Scott Grimm-Lyon
    published this page in Ask Prof. Wolff 2017-01-22 12:03:58 -0500

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