Money Quote by Guy Standing
““The financing option favoured by this writer would be to fund a basic income from the construction of sovereign wealth funds, along the lines of the Alaska Permanent Fund or the Norwegian Pension Fund. This option, which draws on the work of Nobel Prize winner James Meade in his book Agathatopia, would allow a country to build up the fund over the years and raise the amount paid out as basic income, or social dividend, as the fund developed.32 Viewed as a rightful share of income flowing from our collective wealth, the social dividend approach is politically attractive since it would not require either dismantling existing welfare systems or raising taxes on earned income.””
About This Quote
Source Book: Basic Income: A Simple and Practical Guide, Guy Standing, 2017
A sovereign wealth fund can finance a basic income by accumulating returns from national assets, allowing payouts without cutting welfare or raising taxes on wages.
In simple terms: Fund returns can pay basic income without harming existing welfare.
Key Takeaway
Use national asset returns to fund basic income.
Themes
economics
social policy
wealth distribution
Mood
optimistic
pragmatic
Type
policy
economic
informative
When to use this quote
- national budgeting
- policy design
- social welfare programs
- public debate
- economic planning
Key Concepts
sovereign wealth fund
basic income
social dividend
public finance
Questions to Reflect On
- How can a country start building such a fund?
- What safeguards ensure the fund’s sustainability?
A Different Perspective
Requires sufficient national wealth and political consensus to establish and maintain the fund.
