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Unless an economy produces more physical goods and services, adding more money simply inflates the prices.

UBI is a feel good measure with bad second order economic measures. The idea works only if paired with policies that legit increase supply of goods that people want.

For $1000/month, one has to guarantee the quantity and quality of basket of goods are still available to everyone.

If you give a 100 million $1000/month, so a million of them can travel, gotta produce more planes, airports and people working on those airports for the million to effectively travel.

To see inflation gone wrong, look at Venezuela and Zimbabwe.




Price doesn't matter. It's just a number. This is about distribution.

Inflation reduces the value of those who already have cash. That is the point of UBI. It says that everyone should have enough to live on. The wealth has to come from somewhere. Inflation takes it from those who have a lot. The actual numbers adjust to match.

The OP's question was whether it would affect supply. And it will, but not as much as they think. Most people will continue to work anyway. But their relative salaries will be different.




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