Comment by clejack

"Absent corruption" is doing a lot of heavy lifting in your statement. The idea that the system can't fail raises the question what do you consider failure, and what do you consider corruption"

If prices increase and wages don't keep up with them, an increasing number of people become squeezed by their environment. This is a slow event, sure, but enough drops can fill a bucket. The fallout from this pressure on the general populace will be the failure that you're saying can't happen. This seems inevitable without an intervening event to reset things.

With that said, I don't think your concerns are unreasonable, and I'm not sure UBI by itself could solve anything. At a minimum price controls or government administering of food and housing would be necessary to keep prices from rising in response to the influx of cash everyone would receive, but the problem of people not working does seem like a big potential issue.

I believe there have been studies to the contrary, but those studies necessarily miss the universal part of ubi, so they don't have the negative feedback loops that could spring up in a real implementation.