Citizen's Dividend vs UBI

> 2020-10-08

The difference in the concepts of a citizen’s dividend and universal basic income (“UBI”) are laid out in the terms “dividend” and “income.”

Feature Dividend Income
Amount Floating value based on excess revenue Fixed value determined by contract
Frequency Non-guaranteed, likely monthly/quarterly Guaranteed, determined by contract
Source Equity ownership allocates share Labor contributed under contract

These features are present in fiscal policy options.

A citizen’s dividend in a Georgist model [1] would derive funding from tax revenue, ideally a land value tax, minus government spending distributed on a per capita basis to all citizens.

A universal basic income, while fixed in theory, would likely be adjusted as legislators accommodate varying economic and political climates, which introduces the risk of amounts and recipients being arbitrarily set.

Relying on the non-negotiable but non-guaranteed value determined by the dividend’s model reduces mismanagement and pressure to play to political winds.

> Home