I think it will.  To avoid it, a significant portion of Basic Income would have to be paid out as goods and services vouchers with redemption limits.<p>Rather than getting $50 a day as cash, you might get 4 nutritionally balanced but generally unpalatable meal rations, two payment vouchers for one day in one state-owned 250 sq.ft. housing capsule, 30 kWh of metered electricity, 100 gallons of potable water, 10 Gb of network bandwidth, etc.  But you put redemption limits in place so that you <i>can&#x27;t</i> use vouchers to pay for more than 1000 sq.ft. of capsules, 60 kWh of electricity, 200 gallons of water, or 20 Gb of electricity per day.  It places limits on the amount of benefit any single person could suck out of the system at the expense of everyone else in it.<p>The state would also have to be a major wholesale buyer for those things, and sometimes also set up and spin off new competitive suppliers, otherwise the incumbent suppliers might be able to jack up the price and capture a portion of the benefits intended for the end consumer.  Taxes and subsidies have a different mechanism of action economically than the entry of a new supplier firm.