I always disagree with this moving freely argument. Certainly some live where they do specifically for work, but some are also there to be close to family. They will not be interested in relocating to save a buck.
In other words, the real estate market is sticky. There are large costs to moving, so consumers put up with price increases more readily than they do in other markets.
But there's a big gulf between "sticky" and "laws of supply and demand don't apply".
People on UBI will be much more price sensitive than those supplementing with wage income since the UBI dependent will be time rich and money poor. Landlords will have less power over them. They'll still have some power because of the stickiness.
There's a big gulf between "eventually all marginal productivity increases are eaten by rising land rent" and "laws of supply and demand don't apply."
You have no reason to believe people with new marginal income from UBI would move to lower COL areas. We have strong reason to believe they'd spend that money to move toward high COL areas. Evidence for this is the fact that people, when they have money, choose to live in high COL areas.
bryanlarsen|11 months ago
But there's a big gulf between "sticky" and "laws of supply and demand don't apply".
People on UBI will be much more price sensitive than those supplementing with wage income since the UBI dependent will be time rich and money poor. Landlords will have less power over them. They'll still have some power because of the stickiness.
llamaimperative|11 months ago
You have no reason to believe people with new marginal income from UBI would move to lower COL areas. We have strong reason to believe they'd spend that money to move toward high COL areas. Evidence for this is the fact that people, when they have money, choose to live in high COL areas.