Apply HN: Gresham Dollar – Viral Currency for Basic Income
I want to explore another angle of this point I brought up (i mentioned this below for a different point):<p>&quot;What&#x27;s the point of basic income then if eventually tens of thousands of GD is required to buy bread and basic income is only several thousand (point is, not enough to make a difference)?<p>This happens in a sort of way in real life already... Because govt meddle in education loans and subsidies for college, the result isn&#x27;t just that there are more availability of education only, there&#x27;s also an ever increasing climb , almost unhooked from reality, of tuition costs. And some people simply stop paying back, which in a way results in a kind of wealth transfer effect like your GD.<p>But the lethal point is that no force stops the inertia from becoming ridiculous. We already see that colleges no longer have incentive to adhere to reality and prices go to the moon. To remain effective, GD BI have to climb, and off we go to the races.<p>Applied to entire economy, you get hyper inflation. Your GD can&#x27;t distribute fast enough when mass psychology sets in.&quot;<p>Another effect is that not only would GD be viral, BI inside this system itself would become viral.<p>Like the college tuition example, over time, this will disintegrate to the point that people who really make a living and earn USD (or any other way to measure real money, not the BI allocation) will be eclipsed. Everything will become like college. There will be nobody left will be able to afford it in full without some kind of help.<p>Either that, or the BI effect and influence Will diminish and we&#x27;re back to square one.<p>In this sense, I&#x27;m back to what I said above. The BI powered by GD is going to become viral on viral. It will destroy the real economy completely, until nothing is left. The structure it&#x27;s such that they cannot both coexist.