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It could not work the way you suggest though or there would be zero incentive to work. We need more representative numbers to make the figures work, so let's add a middle class of 9 more kids and bump their original figures up a bit. So you have 3 poor kids with 0(+5p), 12 middle class kids with 10(+5p), 3 rich kids with 20(+5p). You need to raise 90p to pay all 18 kids 5p UBI. You tax the 3 rich kids 10p each, and the 12 middle kids 5p. The poor now have 5p, the middle have 10p, the rich have 15p.
The sweets have now inflated to cost 10p. The poor kids still cant afford them.
These types of reductive analogies are so disconnected from reality that they are useless.
Just the two major flaws here, there is no support that there "would be zero incentive to work." That really makes no sense. Andrew Yang's UBI proposal was $1000 a month or $12K/year. In California a minimum wage worker will make about $29K/ year. A UBI would almost have no effect on the majority of people's "incentive to work." And for a minority where a UBI might remove an incentive to work, so what? If a 20-year-old starving artist wants to live off a UBI so they can focus on their art then good for them. If someone wants to live off UBI instead of working as a cashier for McDonalds in Rural Town, Middle America while they go to college, then good for them. If a senior citizen would prefer to live off UBI and Social Security to survive rather than working as a greeter at Wal-Mart, then right the feck on. Overall, I'd say that's going to be a net positive for society in just about every possible way without much negative. Again, the majority of people don't live in any circumstance where 12K is going to disincentivize anything. What it would really do in reality, is allow people to pay off debts like student loans or credit card debt accumulated in hard times or medical bills (overall good for the economy) or allow some people to have more discretionary income to support businesses (also a good thing).
The second flaw is obvious. You just made up the arbitrarily increased inflation in your example. There is no inherent economic factor that would automatically lead to inflation with a UBI.
Now personally, I'm still not convinced UBI is better than other forms of increased social welfare but it deserves more intense experimentation and consideration and should not just be dismissed with really poor 1880s-1920s laissez-faire analogies.