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rualca | 4 years ago
It's reasonable to assume that UBI would be linked with an increase in the demand for some goods and services, but there is no indication that this would reflect in a proportional increase in prices. For example, those who live in poverty already tend to purchase substitute goods due to lower price, which is reflected in some aspects such as the link between poverty and malnutrition. In this scenario it's likely that the increase in purchasing power from UBI would actually cause a shift in the market so that it brings down the demand for said substitute goods and instead spread the newly-found demand through other products.
The same scenario also applies to other markets, such as housing. If UBI grants you a little bit of economic freedom so that you are no longer tied to a specific job or place of residence or even access to public transportation, you can also consider moving to a better/cheaper place somewhere else without your livelihood being a constraint.
Keep in mind that one of the enablers of living frugally/off-the-grif is ensuring that you secure your financial needs. Once people are no longer forced to endure a horrible job to make ends meet, they start to make changes to improve their lives.
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