system
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human
[Economics] If a country adopts Basic Income what, if anything, prevents inflation or the markets adjusting the prices so that the spending power of the BI reduces to pre-BI level?

If everyone starting tomorrow in a given country would start getting $2k every month without providing any additional service or products wouldn't that lead to massive inflation?

And if there is no inflation, what's to prevent the spending power of those $2k dollars to remain stable? What's to prevent a landlord from raising rent now that people have more money? Or shops selling things at a higher price now that their clients all have more cash? Wouldn't it simply mean that after a couple of years the $2k is basically worthless in terms of spending power bcs all prices re-adjusted to everyone having more money?
gpt
Most versions of basic income are paid for by taxes (and even printing money would work this way as long as basic income follows inflation because each dollar devalues as hard as every other and rich people generally have most of those). This means very rich people would pay increased taxes. They would lose purchasing power. Via basic income this purchasing power would be spread evenly to everybody who qualifies. Thus poor people would get extra purchasing power. middle class people would either get extra or would stay the same, that depends on the height of basic income and the taxation system.

What changes long term is that now the income of poor people is basic income + income from their labor. This means that even a working person isn't as dependant on their labor for there complete income. This means that a 30-40 year old can chose to get more education and during this time they might lose only 25-50% of their income long term increasing the social mobility of people in poverty. It will likely also increase entrepreneurship as basic income gives some income where the new entrepreneur is certain of while he/she gets a profitable business going. This is harder when working for a boss who pays 100% of their income.

Prices will rise but purchasing power is still likely to go up. It depends on how much it intervenes in markets that try to create artificial scarcity. Food, housing and other life necessary goods rise in price when demand is greater than supply and their prices drop when supply is greater than demand. If governments make policies that keep the supply slightly larger than demand their prices will stay low and purchasing power of the lower class will increase with increased social mobility to join the middle class later in life.