My only worry about unintended consequences is that if this becomes a broader program (say, everybody gets $1000/mo, not just families that meet aome.kind of criteria), then prices for basic goods like rents will go up (i could see rents going up exactly $1000). Otherwise who could argue how well this kind of cash supplement works?
My only worry about unintended consequences is that if this becomes a broader program (say, everybody gets $1000/mo, not just families that meet aome.kind of criteria), then prices for basic goods like rents will go up (i could see rents going up exactly $1000). Otherwise who could argue how well this kind of cash supplement works?
They gave the exact same reason for why they didn’t want to raise minimum wage, and then rents went up anyways. I don’t buy it…
Imagine a system where prices didn’t magically skyrocket every time the poor catch a break
Yeah that is a concern, however it’s one that people studying these systems are well aware of and looking to account for.
It depends on the good or service in question. Price elasticity is a pretty well studied field.