A Universal Basic Income, a Societal Dividend, needs always to be slightly small, so as never risk being too large.

Sir Ralph Atkins and Gemma Tetlow report that “Swiss vote against basic income provision” “Welfare systems” June 6.

I support Universal Basic Income, for me it is a Societal Dividend, but I would have voted NO in the referendum. 2.500 Swiss Francs, about US$3.500 monthly, about 50 percent of the Swiss GDP per capita is way too large for a “Basic”. In Switzerland, something like $1.000, perhaps expressed as a percentage of GDP or of average or median salaries, would be a much more reasonable level at which to start this social experiment.

And of course the idea of those working not getting the UBI plays directly into the hands of those arguing that UBI could cause people to work less.

So what is a Societal Dividend or a Citizen's Dividend of that kind proposed by Thomas Paine? Here is my personal take on it.

It is a basic amount transferred to anyone independent of having been able to capitalize on society’s strengths and accumulated assets, like having been able to get a good job.

It could be seen as an effort to grease the real economy by combating the natural concentrations of wealth.

It could be seen as a substitute for many those redistribution efforts that because of their complexity, is bound to attract the profiteers.

It is a well-funded transfer, no funny money, from citizens to citizens, or from natural resources inherited by an Act of God, but not depending on government favors. It could therefore be seen as an effort by citizens to become more independent of that populism and demagoguery that often lies behind all societal redistribution.

Also the way it is funded, can help to align the incentives for other societal causes, for instance if with carbon taxes, with the efforts for a better environment.

But a Societal Dividend should never ever be so large so as to risk de-capitalizing the Society or induce generalized lazyness.

@PerKurowski ©

PS. In other words the Swiss UBI referendum was set up to fail... probably by some anxious redistribution profiteers L

Universal Basic Income is a Societal Dividend, paid mostly by reducing the margins of the redistribution profiteers

Sir, John Thornhill and Ralph Atkins discuss the Universal Basic Income proposals flying around. “Money for nothing”, May 27

If anyone should stand up for ideas like the Universal Basic Income, that would be the poor of Venezuela. Out of an incredible oil boom, the 21st Century Socialism gave them less than 15 percent of what should have been their fair equal per capita share of those revenues. The rest was mostly swindled away by redistribution profiteers, wasted away by incapable government besserwissers or captured by “better-positioned” citizens.

For a Venezuelan to read about “Labor leaders… wary of introducing UBI, fearing it might only be used by rightwing politicians to shred the existing welfare state. By setting the rate too low and withdrawing other welfare benefits, it could end up hurting the very people it was designed to help most”, is sadly laughable.

And “the superficially preposterous idea of handing out an unconditional basic income of a year to every citizen, regardless of work, wealth or their social contribution”, a participation in the society, is not much more preposterous than a citizen inheriting some shares of a corporation that gives him the right to a dividend.

Also if we could only separate the redistribution from other government activities it would be so much easier to know what is happening, and therefore be better able to resist the calls of populist demagogues.

But the Universal Basic Income, to really fulfill its purpose needs to be the result of a citizens-to-citizens societal agreement, a Societal Dividend, or a Citizen's Dividend of that sort proposed by Thomas Paine; and not just a handout by governments and politicians that citizens need to be grateful for. On the contrary one of its major benefits it that it reduces the forced citizen submissiveness to those who dole out "the favors". Again, just look at the Venezuelans, suffering all type of humiliations, even being taunted and insulted, and not much happens.

And Universal Basic Income plans, if funded by carbon and petrol taxes would help to align the incentives for the fight against climate change with that of the fight against inequality.

And Universal Basic Income could be the first step in order to create decent and worthy conditions for that structural unemployment that seems to be growing. 

And let us be frank, if the Universal Basic Income is not offered voluntarily, and inequality grows, there will be many less voluntary and much harder options flying around for redistribution.

Universal Basic Income, is not “Money for nothing”, it might very well be money for better chances of the societal peace, which is required to achieve more and better development.

Universal Basic Income is not about assigning governments more power. On the contrary it is about wrestling redistribution powers from their hands.

@PerKurowski ©