Andrew Yang's Freedom Dividend wouldn't cause inflation because it circulates existing money rather than printing new money. Even if prices rose 10-12%, recipients would still gain purchasing power, and competition like Amazon's would limit price increases. UBI expands the economy rather than dividing a fixed pie.
Welcome back to the channel, and I hope you're having a great day. So wanted to talk about, um, universal basic income, inflation, and making pizzas. So, um, you know, one of the biggest arguments against, uh, the Andrew Yang platform, uh, has to be, uh, does universal basic income cause inflation? Does the— will the Freedom Dividend cause inflation? And I came across this article that is about 2 years old about a study done in Mexico that talks about how it debunked one of these biggest arguments. Uh, and I actually tried to record most of the article. I don't know what's going on, but something happened where when I go on this site, uh, it, it's— I'm having some trouble recording on it. So, uh, I'm trying to stay off it and see why that is, but Anyway, let's talk about that a little bit today. So, um, you know, to, to understand inflation, we first have to look at what the definition of inflation is. And the definition of inflation is the printing of new money. You have to have new money introduced into the economy. And so the problem with, um, saying that universal basic income or something to that effect caused inflation it takes away from that being the case, right? So you can't have inflation without new money. In Andrew Yang's plan, he's avoided that by using money that already circulates through the economy, right? And so, um, that's why you won't find economists that talk about universal basic income Um, in terms of saying something definitively like, uh, well, it will cause inflation. But now, as far as rising prices of goods and services, what would, um, cause those things to happen? So you could have a scenario where you have, uh, businesses that decide, well, hey, people have this newfound money. And what we need to do is we basically need to, um, raise prices and, you know, everybody pays us. But the problem with that is that, uh, takes out the idea of competitive pricing, which means right over your cost of production, a business is simply going to see that, uh, they could, they could just take all the money. They could take 50% of the market, 60% of the market, because you're trying to price gouge and they can produce these goods for, uh, less than that and take all the business, right? But let's just say through some way they did manage to pull that off, right? Uh, if they managed to pull that off, uh, what would— what you would end up probably having then is, uh, consumers would be able to just use a type of market arbitrage. If you consider what's happening with Amazon.com, they've already kind of come into local economies and a lot of brick-and-mortar stores have been taken apart by Amazon. And so what more likely would happen, people would just go online and find goods and services a lot more cheaper. Uh, and a lot of these local businesses trying to price gouge wouldn't be able to do that. Now, as far as raising of rents and things like that, well, the article goes on to talk about even if you had some type of inflation, right, it would be minuscule. And I'm going to leave a full link to the article. You can check it out. But it would be— it wouldn't really have the effect on the economy because what would have to happen is the price of goods would have to almost double, uh, in order for it to affect the value you get from the Freedom Dividend. So let's just say that, and prices increase by 10 to 12%, you still have like $900. It would, it would, it would be almost impossible for inflation to rise to that value to where you're getting no value from the Freedom Dividend. Uh, also, in the idea of making pizzas, A lot of these models are based on the idea that we only have one pizza pie and we're taking slices from this pizza pie and that's the only pizza pie is going to be. And so if everybody takes slices from this pizza pie, we're going to end up with nothing or very little. But that's not how it works, really. When an economy is stimulated through something like through the velocity of money, something like universal basic income or the Freedom Dividend, This stimulus creates an expanding economy. So instead of having one piece of pie, you have, uh, maybe 2 or 3 in it because you now have a new market of people. And this new market of people, uh, uh, have created, uh, a new service industry. But not only that, sometimes they go on to create businesses of their own. The homeless, people who are, uh, low income in a variety of things. Uh, they didn't create these businesses in some situations, or businesses are created to serve this newfound revenue source, right? So similar to the concept of what we had back in the early 2000s with the Bush stimulus package, the entire concept of giving people free money was predicated on we were going to grow the economy. Now, if giving people free money didn't quite work that way, then why is it, or why would we, uh, basically do that? Like, why would we, um, give out free money in hopes that we can have this expanding economy, right? Wouldn't that to some effect create inflation and not solve the problem? But it does, uh, they do it because it doesn't do that. It expands the economy. In some models, right? What is clear and what we do know is no economist will ever come out and say universal basic income causes inflation. If that were the case, they would have did it already. It is not how the economy works and that would not happen. Uh, we would have more pizzas made, the ever-expanding economy. Uh, but that's all I want to say in this video because I've done videos on this in the past, but there are new people being introduced to the Yang family, and this is a concern of theirs, and it's one that we need to address and have some understanding of. But real quick, want to plug BitcoinMYK.com, our own universal basic income project. You gain from it, it is for you. We use blockchain technology to help you meet your basic needs every month by getting these cryptocurrencies. And so let's always move towards our best interest. Many of us Americans still are out there not voting in our best interest, not supporting the Yang campaign. And our website, BitcoinNYK.com, make sure that you support your own best interest. We'll leave a link in the description. That's all I want to say in this video. If you like content like this, don't forget to like and subscribe. And until next time, take care.
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