Here are my thoughts: Of course, you're talking about an efficient market keeping prices at an optimum. I think at the crux of the matter is the supply elasticity of goods consumed by the least wealthy. The worry goes as follows: basic income guarantee (BIG) would line consumer's pockets, but what if rent (etc.) goes up concomitantly such that people are just as poor off as before BIG. In other words, they receive X dollars per year, but pay X extra in rent (etc.)
I think a good counterargument goes as follows: people have true security to move to a new location with cheaper rent. Thus supply and demand of goods become more efficient as the mobility goes up and people can act more efficiently/rationally.
Good points. I definitely see both sides of the coin playing out: with some landlords and sectors increasing prices, but others holding steady. I personally have no evidence to assert that over time, the battle would be won by the landlords and sectors that maintain reasonable prices, but your counter argument makes a great point.
I just feel like BIG would be ideal in so many ways. We can cut all social programs that are BIG for specific groups, and use those savings to help offset the massive cost of the program. The BIG would allow disenfranchised/unemployed persons security in food and housing (hopefully, as our discussion brings up the concerns), tt would allow part-time workers a chance to save money, and participate in the economy, and it would allow full-time workers to supplement their income, again allowing them to make larger purchases and save.
IMO, the current economic climate warrants experimentation. Where I'm from, we've had a study in BIG (http://en.wikipedia.org/wiki/Mincome), that showed promise not only in an economic sense, but a social sense as well. I truly think it could be a force of good. As a society, we need to either set the bar higher for our collective support towards to lower classes, or we need to come to grips with a class based reality that is projecting towards more inequality.
> I think at the crux of the matter is the supply elasticity of goods consumed by the least wealthy.
A very valid concern. I feel like landlords would be reticent towards increases initially, as their isn't any data to back your decision on the matter. Again, I feel like the holdouts combined with migration will pressure the groups wanting to raise prices enough to limit the increase. But then again, if everything raises in price by 15%, then you're not just paying 15% more, you're paying 100 dollars more for rent a month, 100 dollars more for food per month, etc...
We need to at least start implementing studies and experiments. I can't see any reputable economists dismissing the policy out of hand without proof of it's benefits/downfalls. Both you and I can only speculate. I'd love to change that and for us to talk about data regarding this someday.
I think a good counterargument goes as follows: people have true security to move to a new location with cheaper rent. Thus supply and demand of goods become more efficient as the mobility goes up and people can act more efficiently/rationally.
Thoughts?