UBI is implemented tomorrow. Every citizen gets $1000 per month.
Landlord now knows you have an extra $1000 that you never had before. Why wouldn’t the landlord raise prices?
Now you have an extra $1000 a month and instead of eating rice and beans for a few meals you go out to a restaurant. The restaurant owners know everyone is eating out more so why not raise prices and maximize shareholder profit as always. The restaurant/corporation is on TV saying, “well, demand increased and it is a simple Economic principle that prices had to increase. There’s nothing we can do about it”.
Your state/country has toll roads. The state needs money for its deficit. UBI is implemented and the state/country sees it as the perfect time to incrementally raise toll prices.
Next thing you know UBI is effectively gone because everything costs more and billionaires keep hitting higher and higher all time net worth records.
You can’t go to a competitor if everybody does the same thing.
The first time one of them breaks ranks and lowered their prices it would come crashing down.
Perhaps.
One can only hope, but longtime & continuing consolidation of companies in various US industries have left me with little of that.
And if an industry as a whole feels their bottom line is seriously threatened, many of said companies will often join together and raise prices at the same time to protect their own interests. It’s happened before, so what can I say? ¯\(o_o)/¯
They only have a finite supply of units, all the others need to do is hold out, not gonna be able to afford more if you’re trying to undercut everyone else either.
Oligopolies handle this by just buying “turds in the punchbowl” companies and dismantling them.