It’s not so much that my arguments revolve around the money supply. It’s more that people who claim Basic Income will cause inflation are often basing their claims on an assumption that it will cause an increase in the money supply. So I’m just pointing out the flawed assumption on which these arguments are based.
You are correct that inflation, in general, could result from an increase in the velocity of circulation. This could, in theory, happen at any time, regardless of whether we have Basic Income or not. But the Basic Income naysayers are not putting forward any arguments suggesting that Basic Income will increase the velocity of circulation. That’s not their case at all.
“If we are going to provide everyone with additional income, I would assume they are going to spend it”
Ah, but Basic Income does not involve providing “everyone with additional income.” That’s a misconception. Basic Income is to be paid instead of many existing welfare payments and instead of some existing tax allowances — not as well as.
(If you’ve found this customised explanation helpful, you can thank me by clapping the article as well as the comment. Thank you!)