UBI is implemented tomorrow. Every citizen gets $1000 per month.
Landlord now knows you have an extra $1000 that you never had before. Why wouldn’t the landlord raise prices?
Now you have an extra $1000 a month and instead of eating rice and beans for a few meals you go out to a restaurant. The restaurant owners know everyone is eating out more so why not raise prices and maximize shareholder profit as always. The restaurant/corporation is on TV saying, “well, demand increased and it is a simple Economic principle that prices had to increase. There’s nothing we can do about it”.
Your state/country has toll roads. The state needs money for its deficit. UBI is implemented and the state/country sees it as the perfect time to incrementally raise toll prices.
Next thing you know UBI is effectively gone because everything costs more and billionaires keep hitting higher and higher all time net worth records.
You can’t go to a competitor if everybody does the same thing.
The first time one of them breaks ranks and lowered their prices it would come crashing down.
Perhaps.
One can only hope, but longtime & continuing consolidation of companies in various US industries have left me with little of that.
And if an industry as a whole feels their bottom line is seriously threatened, many of said companies will often join together and raise prices at the same time to protect their own interests. It’s happened before, so what can I say? ¯\(o_o)/¯
They only have a finite supply of units, all the others need to do is hold out, not gonna be able to afford more if you’re trying to undercut everyone else either.
How come one can’t buy a rural 1/4 acre and pour a foundation for a 1200 Sq. Ft. utilitarian house that is built taking a loan for everything, living out of an old trailer on property & doing 1099 subcontracting internet work? The loan is n% of the whole, the rest is up to the person to supply. Gotta stack paper. The housing shortage is subject to wanting to have a good time, versus living a frugal present for an uncertain future.
Second hint: one should built their credit from starting at, say 650, and building to 750, all by paying bills on time for two or three years.
It isn’t easy to deny the luxuries of the world, because YOLO could end at anytime in this world. If you are a city type, it must be frustrating, so I see more and more ppl going 1099 remote subcontracting from cheaper, more rural areas, say 50 miles from the metropolitan area
Oligopolies handle this by just buying “turds in the punchbowl” companies and dismantling them.