Would Universal Income Cause Inflation?

In the current crisis, in which a government-mandated shutdown has left households more vulnerable than at any time since the Great Depression, a UBI seems the most direct and efficient way to get money to everyone who needs it. But critics argue that it will just trigger inflation and collapse the dollar.

Will universal income cause inflation?

The primary argument against, or drawback to, a universal basic income system is the potential for it to cause runaway inflation, which would ultimately raise the cost of living.

How does universal basic income affect inflation?

A UBI is a redistribution of income from those that have the most, to those that have the least. It does not add new money to the economy, it just changes who gets to spend it. It doesn't create overall inflation in the system because the same dollars are changing the same products.