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A redistribution of consumption does not increase prices overall, although in the short run you would expect apples to be more expensive and yachts to be cheaper. An overall increase in consumption, because poor people save a smaller fraction of their money, does lead to inflation, though also to economic growth.


It's redistributing from people that save most of their income (and often consume outside the Swiss economy) to people that consume most of their income (in Switzerland. The price of yachts on the world market won't move. The price of apples in Zurich will skyrocket, especially since the move simultaneously decreases the supply of low-end labour willing to work all month delivering or selling apples for 3200CHF per month. The combined effect of the two is likely to be massively inflationary.

I'd be a lot happier with the Basic Income if I owned-low end rental property in Zurich than if I had a job, unless BI is funded by a property tax...




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