UBI is implemented tomorrow. Every citizen gets $1000 per month.
Landlord now knows you have an extra $1000 that you never had before. Why wouldn’t the landlord raise prices?
Now you have an extra $1000 a month and instead of eating rice and beans for a few meals you go out to a restaurant. The restaurant owners know everyone is eating out more so why not raise prices and maximize shareholder profit as always. The restaurant/corporation is on TV saying, “well, demand increased and it is a simple Economic principle that prices had to increase. There’s nothing we can do about it”.
Your state/country has toll roads. The state needs money for its deficit. UBI is implemented and the state/country sees it as the perfect time to incrementally raise toll prices.
Next thing you know UBI is effectively gone because everything costs more and billionaires keep hitting higher and higher all time net worth records.
I have found that economy experts say that things are counterintuitive more often that any other field. I think at this point I have just accepted that the economy is some black magic that I’ll never understand. So I’m gonna smile, nod, and let the experts do their thing.
Ah yes, economy experts. The ones who can’t solve any single economic problem and who can’t predict a single crisis. Very useful people.
Well, you could blame that on the fact that economy experts don’t have the power to do any of those things. Politicians do.
Economics is just psychology masquerading as a hard science