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eirini1 | 5 years ago

demand for housing is somewhat inelastic though. It will only increase to the point where homeless people can now afford to rent a room somewhere. UBI would only significantly increase demand if it was so much money that a lot of people would be looking to buy second or third homes.

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banannaise|5 years ago

The problem, in the end, is the other side of that inelastic demand.

Everyone needs to live somewhere. Landlords only profit if their properties are occupied, but they can simply decide to all increase their rent by $1000 a month, knowing that eventually, the only choice for some people will be to pay it or be homeless.

I have no idea if it would actually work this way in practice.