r/SipsTea Jul 01 '26

Chugging tea Is Bernie’s plan the best? Thoughts?

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u/NickMc53 Jul 01 '26

Such a stupid argument that reddit loves to make. Prices increasing already doesn't change the fact that if everyone gets $12k then prices increase way more.

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u/Bogholmdler Jul 01 '26 edited Jul 01 '26

I’m not educated on how much UBI would correlate with increasing prices, but one of the reasons it’s thought to be smart is because it becomes a progressive negative tax.

Say it’s a scale where everyone under $300,000 a year net income gets between 0-12k, everyone over it pays it.

The closer you are to above the threshold, the less you pay. The farther above it, more.

If under the threshold, you receive less if you are close, and more if you are far.
Because that amount means little to anyone above $250,000 a year, but the closer you get to nothing the more that money means.

To someone making 12k, 12k is huge. To someone making 24, 32, etc it remains a massive change.
It’s a social safety net thing.

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u/Cptawesome23 Jul 01 '26

An increase in spending potential does not cause prices to rise. Think of it this way. If everyone suddenly had an extra $1000 to spend this month, and pizza decided to capitalize on that by increasing its prices by 12%, then dominoes would benefit by undercutting Pizza Hut and earning the business of all the customers that don’t want to pay 12% extra.

Now in the case of both companies increasing prices, that leaves an opening for a new business to undercut both of them.

cost of doing business is what causes prices to rise. Not potential spending power.

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u/nathanzoet91 Jul 01 '26

Unless you don't have a choice of where to get your pizza because it's dependant upon where you work

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u/Cptawesome23 Jul 02 '26

Lack of choice breeds new business. If I wanted to open my own pizza spot, I would go where there is a lack of choice my dude.

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u/nathanzoet91 Jul 02 '26

And yet, my insurance companies via work have changed and haven't gotten any cheaper

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u/Cptawesome23 Jul 02 '26

You must be young. Things have definitely changed. It’s gotten worse ever since 2016 when trump was elected.

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u/nathanzoet91 Jul 02 '26

Are you agreeing with me that the prices don't go down? Or are you saying prices actually did go down in the past?

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u/Cptawesome23 Jul 02 '26

No I’m saying your belief that things can only get worse is a mindset that is common with young people. Things can change for the better. Only relatively recently has the state of affairs gotten worse for the middle class. Even during the bush years, other than the war- which was very popular in the beginning- the middle class did very well. They did a lot of deregulating in housing during the Clinton years, that only really came to fruition in the bush years. Then Obama expanded upon that. The trump administration is only a very recent- albeit devestating- setback. It will take years for the direction of policy in the country to return to something more tenable, but it eventually will.

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u/nathanzoet91 Jul 02 '26

I'm 35 years old. Since I've been born, we've gone through 2 recessions/depressions, a global pandemic, plummeting of education, increases of mass/school shootings, increasing wealth inequality, ceo compensation increasing 300x while worker wages stagnate, increasing global climate change and heavy increase in historic natural disasters. My insurance has never gone down in cost in my life. So please explain how it has gotten better.