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

Limit tax deductibility on what is paid to a CEO, to 10 times the average salary. That sends a discreet social message.

Sir, I refer to Michael Skapinker’s “It is time for a brave CEO to ask for lower simpler pay” May 21.

Skapinker is of course right in his wishes… also because I believe it is very useful for a company to attract CEOs that do not give the factor of financial remuneration an importance weighting of, let us say, more than 50 percent.

But why not also help “the brave CEOs” to make up their mind. For instance what about limiting the tax-deductibility for the company of all salaries and bonuses paid to the CEO to 10 times the amount of the average (or median) salary paid in the company? That should be a good place to start sending out a discreet social message to corporations and their shareholders alike.

As compensation above that limit would be made with after tax profits that would stimulate everyone to make really sure the CEO has really earned it.

@PerKurowski

PS. http://teawithft.blogspot.com/2013/03/why-must-uk-say-no-to-eu-on-bonuses-cap.html