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.
The general argument for getting rid of minimum wage is that there is a whole bunch of work out there which is simply not valuable enough to be profitable if the labour must be paid at minimum wage prices, and so those jobs simply aren’t available right now.
The trade-off is that it guarantees laborers are able to afford a basic life with their jobs, which greatly reduces the ability of capitalists to prey on the working class. However with UBI that problem isn’t so big anymore, so there’s theoretically no need for a minimum wage.
I hear you. At the same time, minimum wage also ties into laws against wage theft. So maybe we shouldn’t take it off the shelf for a good long while, at least until wage theft can be cut to reasonably low levels. Good luck to us on that front, though.