Friday, 1 April 2016

Bad inflation - not a reason against unconditional basic income

"Well, " they say "if you increase wages, or benefits, the inflation boogeyman will eat your children" or something similar. It almost sounds convincing, premised on the free market law of supply and demand, Yes demand increases. But so do the opportunities for people to meet that demand, and trials of unconditional basic income have shown that communities and individuals are more than willing to work and increase supply, and so successful are they at meeting market demand prices fall.

Also price pressure reduces because labour costs fall for such enterprises, as workers supported by the UBI, choose to work not because they need the money, but because they see the value of the work product to their community. And profits from the enterprise can benefit the community as a whole.
For the individual or family group, they can enrich their lives by contributing time to the community, and perhaps starting and enterprise of the their own, creating further down pressure in whatever market they choose.

Corporations and billionaires enjoy inflation it drives their increasing prices. In the 80's they gave us 12% mortgage rates, and now the can  today scare those us over 30 us into fearing high inflation.

Today, we see job disappearing as manufacturing production is shifted to South  and East Asia and china brands itself as factory floor to the world. But all hush hush on the long work shifts and high suicide rates.  If think your neighbours can continue to support themselves and their families, purely "good honest work" it may be worth noting not even National is willing to make that bold claim, which the would have to in order to kill "Working for Families" tax credits.

Today, a $25 Child Hardship addon for families on benefits starts. While not universal, it will stimulate demand, companies will hire, especially in food production and clothing retail. While it is tempting to think this is a handout to "lazy poor second class citizens better off enslaved or euthanized" (as is the attitude of some) It is actually more of a handout to the retail sector, so if you are against "handouts" be consistent, Briscoes, the Warehouse, and welfare queens like Anadarko, Tag Oil, the woolworths chain. The Aussie banks. And the others who slide on NZ$6b in tax evasion.

You might also stop asking for hand outs like the building and maintenance of roads universities, hospitals, if you are sick build your own hospital. Like to travel build your own private road, because by you own hypothesis you can't use public roads, at least without being a chisling hypocrite.

Monday, I had a conversation with someone who "worked hard" "from the age of 14" owned his own home, who seemed unmovable on the idea that hand outs to lazy people were unacceptable to him. Then he stepped aboard a bus - public transport - bloody leach ;)

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