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Originally posted by Cindysphinx:
Well, OK. But if someone asked me a dead obvious question about my field, I wouldn't begin my answer with, "I'm just curious, have you ever taken Civics 101?"

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Originally posted by Cindysphinx:

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Originally posted by Axtremus:

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Originally posted by Cindysphinx:

If you give everyone $12k a year, how is that helping anyone survive? Wouldn’t housing costs rise by, oh, I don’t know, $12k?

No.

Different people need/want different things. An additional $1k for a millionaire goes into an investment account, a charity, or a piece of luxury good. An additional $1k for a low net worth, low income person goes into food, clothing, shelter, transportation, healthcare, education. Different poor people have different needs and different priorities, so will direct that additional $1k towards different things. The funding for the $1k/head still has to come from taxes. So it will come from somewhere in the economy. Redistributing $1k to every head reduces income inequality and give those in the low income strata a better chance at affording basic necessities. Some in the middle class may even use the $1k to reduce the hours they work (e.g., to have more time to take care of children or old people in the family, or even just to play piano or tennis; that’s $1k translated into time rather than rent or goods).

Think one billionaire with 999 homeless hobos. Redistribute $1k per head to everyone, and the hobos can potentially go from homeless to having a room. The billionaire may be the landlord who set rents such that housing for the hobos amount to all the $1k per head they all get, and some middle class renters will have to pay higher rent following the new rate set by the billionaire landlord, but the hobos still go from homeless to having a room.

Nope, I'm still not seeing it.

Several of you have explained that if you give poor people money, most of them use it wisely. Yup, I get it. No argument there.

What I cannot understand is this:

Say UBI goes into effect at $1000/person per month, regardless of need. Just hold out your hand and the government gives you $1000.

Let's take Helen Homeless. Armed with her $1000 and desperately hoping to get off the street, she comes to the apartment complex owned by Thomas Tightfist. There is a sign right out front saying rent for a studio is $1000/month.

Thomas (who also gets $1000/month and is planning a luxury African Safari with the windfall) has 50 tenants in a 50-unit building, all paying $1000/month -- full occupancy. There is, after all, a shortage of affordable housing, which is why Helen is homeless. Thomas immediately raises the rent on each unit to $2000/month. All of the current tenants stay put and, despite their $1000/month government check, are no better off. Meanwhile, there is still no room at the inn for Helen, who goes back to her homeless encampment.

Show me how I'm wrong.

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New data released as part of Stockton’s closely watched universal basic income experiment offer a first glimpse into how an extra $500 a month affects the spending habits and quality of life for those receiving the no-strings-attached funds.

The 18-month study — the first of its kind led by a U.S. city — aims to see whether a guaranteed income can reduce stress and, in turn, unlock new opportunities for people struggling to make ends meet. Tracking and analyzing the spending habits of the 125 individuals currently receiving the stipends, the program will also provide greater insight into the viability of long-term basic income models more broadly in the United States.