> 2020-10-28

A non-guaranteed citizen’s dividend introduces fiscal competition between political parties that are members of the dividend issuing government.

For common equity dividends the amount per share is determined by profit surplus roughly calculated as revenue minus cost. Similarly, a citizen’s dividend is determined by government revenue minus government cost. Given government revenue is often primarily driven by taxation, the least impactful way to increase distributions to constituents is to reduce government costs.

In this system, political parties would compete to generate the greatest budgetary surplus. This would make politicians responsible for maintaining balance between maximizing the dividend and providing essential services such as national defense.

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