Sure I get that. I got it at page 2 - "Who will work at McDonald's, clean houses, drive buses or take care of elderly if they earn the same as those who get up at 10 and play games all day?" - which subsequently was corrected by a few people because - 'yes, people would still have incentive to work at those places, because it's salary + SFr2500'. Of, course if the salary is changed to become too low, you'd still end up with the original issue - people not working at low-level jobs.
I'm surprised that so many believe they have this sorted out (perhaps not that they'd like to see Switzerland being a guinea pig) with this little info. It's almost if they support it purely for ideological reasons without looking at the potential risks involved in the experiment.
That's kind of the point there would be drastic job loss for low wage workers and then increases on the low scale. Likewise you would also be establishing kinks on the middle and high end wage workers. But what this does allow is for workers to effectively choose and agree with whatever income they are offered.
Of course people will refuse to work, but in the ends its not a bad thing. In the more developed urban centers this allows those whos utilities are better satisfied by working to be able to find work and those who are too lazy/satisfied still have basic income that they can return to the economy through consumer spending. Creating a baseline actually certainly will reduce workforce hours initially and quite probably permanently, but theoretically everyone would be paid their correct wages [Since no worker whether high end or low end would have as much an incentive to agree to a wage they don't believe fits them, reshuffling demand until absolute worker value utilities are matched]
Inflation probably would occur at relatively increased rates, but this isn't another Zimbabwe case. Unlike Zimbabwe where only certain segments of society enjoyed temporary increased wages, this creates an absolute baseline and therefore adjustment would have to come from the political system. Inflation can be a monster for sure and it would probably happen in this case, but considering that 2k-2.5k SFr per person will be injected into the direct consumer economy the amount of capital open to create new alternative businesses will be available to potentially compete over-time against inflation.
So in short:
- True Wages will most likely occur
- Inflation would occur and mostly after a few months after the program's implementation but probably would slow down a year after/months after
- Workforce hours will decrease
- Firms that rely on low skill labor would have to significantly readjust or face failure in the initial period
- High injection of capital into the low end sector of the population would mean firms would have an added incentive to refocus their attentions to this now guaranteed income low demographic sector
