> Most of the poor are renters. If you gave everyone $12k more a year, why wouldn't everyone's rent (and other expenses) simply rise by $12K?
If they did, that would be a sure sign of an unregulated supply monopoly which most developed nations have tools designed to address. In a competitive market, increased demand resulting from consumers having more money is expected to result in market clearing unit price, but also in quantity traded.
You see some price increases, particularly in goods disproportionately purchased by the poor, but the increases in average prices would generally be less, proportionately, than the increase in incomes of the groups purchasing them. The exception would be goods where there is an unregulated (or poorly-regulated) supply monopoly.
If they did, that would be a sure sign of an unregulated supply monopoly which most developed nations have tools designed to address. In a competitive market, increased demand resulting from consumers having more money is expected to result in market clearing unit price, but also in quantity traded.
You see some price increases, particularly in goods disproportionately purchased by the poor, but the increases in average prices would generally be less, proportionately, than the increase in incomes of the groups purchasing them. The exception would be goods where there is an unregulated (or poorly-regulated) supply monopoly.