Citizen's Dividend: Revitalizing the American Dream and Economic Prosperity

The Citizen's Dividend was quite possibly the first proposal for a basic income. It can be traced all the way back to Thomas Paine's less famous pamphlet, Agrarian Justice, in which he writes about collecting land tax (structured as an estate tax) to provide both money for those who can't work, and the Citizen's Dividend for regular citizens. 

Citizen's Dividend vs UBI

The Citizen's Dividend differs from a typical Universal Basic Income because the amount supplied is not fixed and changes with the amount of revenue generated through land taxes (or whatever it is funded through). It's more a percentage of the commonwealth that all people are entitled to than a government handout. It also means that a Citizen's Dividend won't drive the nation into debt.

The American Dream

The Citizen's Dividend is a way for us as a country to steer back towards the American Dream. There is no American Dream without ample opportunity for all people. Unfortunately, this dream at times appears to be lost, with some not having access to certain opportunities because of lack of capital at their disposal. Some people are born without a fair share to the natural resources placed here by God for us all to enjoy. 

The Citizen's Dividend can also provide important stability for people so that people can have the ability to turn down unfavorable jobs in hopes for better opportunity to achieve their vision for the American Dream

Economic Benefits

With everyone having access to the dividend, people could be more free to open businesses and invest in themselves through education. Not only would it be a win for equality of opportunity, it would be a win for the economy, with new businesses and more educated people entering the market. 

Unlike the current welfare system, the Citizen's Dividend doesn't operate like a poverty trap. It incentivizes and encourages working and participating in the economy. When you take a new job, you don't have to worry about losing your money. The current welfare system is designed to keep people in poverty, not lift them out. Citizen's Dividend would be drastically better for the economy than the current welfare system.

 Businesses where people would spend their dividend would also be benefited.

A Plan For The Citizen's Dividend

The following is my proposal for a Citizen's Dividend.

The UW (Unable to Work) enhancement

Recognizing that people who are unable to work may not be sufficiently taken care of with the standard Citizen's Dividend, we must prioritize meeting their basic needs. They should receive increased funding sufficient to meet said basic needs.

Funding

The Citizen's Dividend should be funded by a 100% LVT placed on all land. This will discourage land speculation and ensure that land is used efficiently. The whole list of economic benefits to LVT cannot fit in just this post. 

Immigration

Understanding free immigration is an important part of American culture and the American dream, we must find a way to incorporate immigrants into our system. Offering immigrants citizenship immediately will bankrupt such a system as I am currently proposing. Immigrants should have to be here in the U.S. participating in our economy for 7 years before they are eligible to receive the Citizen's Dividend.

Children

We must balance incentivizing parents to have children and the children's future prosperity. Thus children should receive a full Citizen's Dividend, with half being given to the parents to pay for expenses for the children's wellbeing, and half being locked into a savings account to be given to the child on his 18th birthday. This money could be used for numerous things, such as paying for an education or starting a business. 

Adults

Adults should receive the Citizen's Dividend beginning on their 18th birthday, and carrying out to the day they die

Conclusion

A Citizen's Dividend not only has the ability to revitalize the American Dream of opportunity for all, but also boost the economy and lift people out of poverty. It's a system that we should all consider when looking at issues of poverty and economic downturn.