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submitted 2 weeks ago by Zeon@lemmy.world to c/asklemmy@lemmy.world

Hello, I'm not that informed about UBI, but here is my arguement:

Everyone gets some sort of income, but wouldn't companies just subside the income by raising their prices? Also, do you believe capatilism can co-exist with UBI?

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[-] donuts@lemmy.world 47 points 2 weeks ago

Here's a good breakdown: https://econreview.studentorg.berkeley.edu/unboxing-universal-basic-income/

As for my thoughts, yes there would be a noticeable impact at first, but UBI would help stabilise and strengthen the economy in the long term because purchasing power and demand will increase. If supply can keep up, prices won't go up. Companies can't just raise prices as that's called price fixing. Antitrust laws should be there to prevent that, but your mileage may vary depending on your country. That means that if some companies decide to raise prices because of more purchasing power, some smart company is going to charge less to gain more market share. So we're still doing capitalism, but there's a social safety net.

Also, people will still go to work to find purpose. Except "work" in this case could mean the freedom and flexibility to contribute locally, or take higher risks like entrepreneurship or becoming an artist.

[-] Karyoplasma@discuss.tchncs.de 19 points 2 weeks ago* (last edited 2 weeks ago)

That means that if some companies decide to raise prices because of more purchasing power, some smart company is going to charge less to gain more market share.

Here is how this turns out in reality: Company A raises prices because they are greedy bastards. Company B is then impressed with the sheer display of dominance by A and raises prices accordingly to "keep up".

Your thinking is correct and that's how it should work, maybe it even did in the 60s, but it just isn't the case anymore.

[-] DomeGuy@lemmy.world 16 points 2 weeks ago

You're forgetting "customers see how much prices are up, and just stay home" or "company C, looking to break in, undercuts A and B and changes the market."

A real UBI is a great fix for capitalism, since it makes "f it, I'll just stay at home" possible.

[-] NGnius@lemmy.ca 13 points 2 weeks ago* (last edited 2 weeks ago)

Your first example only works for goods that are completely optional, which is very rarely the case. For example, smartphones. Nobody technically needs one, but almost everyone in western countries has one. If every company that makes a smartphone increases their prices, people will still buy them because they basically need them. I believe this is the principle of inelastic demand (or low elasticity) -- car fuel is a more traditional example.

Your second example doesn't work when the cost of entry into the market is really high. This is very common in high tech. Take semiconductors for example. There's basically one big name in chip manufacturing (TSMC) and a few runner-ups (Samsung, Intel, etc.). The latest node is infamous for being very expensive and low capacity. Why aren't there new competitors constantly breaking in to the market?

UBI is a great idea and will help things, but it's not perfect so we shouldn't expect it to just completely fix capitalism. The best way to fix capitalism is to get governments (which are all in charge of capitalism) to fix it with regulations. UBI will be a major regulation/step in the right direction.

[-] donuts@lemmy.world 5 points 2 weeks ago

Company A raises prices because they are greedy bastards. Company B is then impressed with the sheer display of dominance by A and raises prices accordingly to "keep up".

When there's a dozen manufacturers, they won't all do it. As I mentioned, this is price fixing and illegal in a lot of countries.

Secondly, what's stopping someone from creating another company to undercut all of those greedy bastards to corner the market?

[-] partial_accumen@lemmy.world 10 points 2 weeks ago

When there’s a dozen manufacturers, they won’t all do it. As I mentioned, this is price fixing and illegal in a lot of countries.

They can't coordinate together to fix prices, but there is nothing legally stopping them from watching each other's public behavior and adjusting their pricing to match.

[-] shonn@lemmy.world 3 points 2 weeks ago

All B has to do is not raise their prices as much as A.

[-] postmateDumbass@lemmy.world 1 points 2 weeks ago

Ita already working like that post pandemic.

this post was submitted on 11 Dec 2024
197 points (96.7% liked)

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