[spdif899]

I understand where you're coming from but my perspective is that the two aren't directly comparable. The stimulus money came at a time of fear, and a time when people were primarily stuck inside. It was also known by all to be limited to just one or a couple of payments.

All that combined meant for those that didn't have an immediate need, it was effectively like getting a small bonus from work - putting it in savings or an investment made a lot of sense. I also know several friends that were only able to pay rent or bills because of it.

That is different than if people who need it were given a base source of income that was predictable and long term. I don't think it would just dump into savings then - it would get spent on a new car, or rent, or to pay off debts.

[bentt]

I don't think it matters where it gets put in terms of inflation. What we learned from the stimulus is that taken in aggregate, the population became less price sensitive because they had more money, and sellers felt the increased money supply. This allowed prices to rise. I don't see how UBI doesn't create a similar outcome, but I'm happy to review a paper or something that shows possibly how after an extended period it levels out. I'd imagine in a similar vein if you deleted overnight Social Security prices would fall because the money supply would be impacted so severely.