But money does not create wealth. Money is just a tool of trade and a measure of the value of goods and services produced in an economy.
Airdropping money will not transform this world into a utopia where everyone is wealthy and can live without working. At the end of the day, we need plumbers, electricians, garbage men, software engineers, nurses, lawyers, etc. to maintain this civilization and this will not be changed from the top-down by inflating the money supply.
Yes, nominally they will be paid more money. However, the same amount of goods and services will be produced in this economy, so an increase in the money supply will In reality be worthless.
> However, the same amount of goods and services will be produced in this economy
It has often been shown that giving money to the poor generates more trade and consumption. Poor people have a restrained budget, so they naturally reduce their spending. If you you give them money, it easily generates a lot of economic activity.
> > However, the same amount of goods and services will be produced in this economy
> It has often been shown that giving money to the poor generates more trade and consumption.
Goods and services need to be produced before they are traded and consumed. More money chasing the same amount of goods and services is bound to create inflation. This UBI is a just a roundabout attempt at economic stimulation through currency debasement. The same thing was tried many times before in many different places, and the result has always been the same.
> Poor people have a restrained budget, so they naturally reduce their spending. If you you give them money, it easily generates a lot of economic activity.
I think you have a misconception about what money is. Money is just a relative measurement of value and a tool of exchange. Yes initially poor people will be able to increase their spending. But most prices are elastic and will increase quickly until the poor are in the same situation as before, even with the additional UBI income.
No, the UBI is a simplification of welfare, to reduce the cost of poverty.
It's mostly about social problems than economic problems. Inflation can be controlled.
> The same thing was tried many times before in many different places, and the result has always been the same.
Do you have sources that are comparable with UBI experiments?
> until the poor are in the same situation as before, even with the additional UBI income.
No. Unconditional money, whatever the amount, is what matters.
Generally there is a critic that economics tend to focus too much on the math, and not on the political, social, psychological and human side. Ideologies have always affected economics. It also does today.
Airdropping money will not transform this world into a utopia where everyone is wealthy and can live without working. At the end of the day, we need plumbers, electricians, garbage men, software engineers, nurses, lawyers, etc. to maintain this civilization and this will not be changed from the top-down by inflating the money supply.