New report suggests the government should give everyone under 55 £10,000 regardless of employment status or current wealth.
The findings have come from The Royal Society for the encouragement of the Arts, Manufactures and Commerce (RSA) saying it could be the transition needed for everyone to eventually receive a state funded basic wage.
The idea proposes two seperate payments of £5,000 to be paid over a two year period. This would also result in other benefits and tax reliefs being removed.
RSA believe the incentive will support the way work and jobs will be changing during the 2020’s “as automation replaces many jobs, climate change hits and more people face balancing employment with social care”.
The money would be taken from a British sovereign wealth fund, and applicants would only have to explain how they plan to use the money.
Director of the RSA’s Action and Research Centre Anthony Painter has said: “The simple fact is that too many households are highly vulnerable to a shock in a decade of disruption, with storm clouds on the horizon if automation, Brexit and an ageing population are mismanaged.
Without a real change in our thinking, neither tweaks to the welfare state nor getting people into work alone, when the link between hard work and fair pay has broken, will help working people meet the challenges ahead.”
It is thought that the fund would help people who have not had time to pursue their passion: “A low-skilled worker might reduce their working hours to attain skills enabling career progression.” and “The fund could provide the impetus to turn an entrepreneurial idea into a reality. It could be the support that enables a carer to be there for a loved one.”
The BBC reports: The fund would be built from public debt, levies on untaxed corporate assets and investments in long term infrastructure projects, and be similar to Norway’s $1 trillion sovereign wealth fund.
As the dividends would replace payments such as Child Benefit, Tax Credits and Jobseeker’s Allowance, the savings for the government could also be ploughed into the fund.
A similar idea is currently being trialed in Finland were 2000 random unemployed people are all being given around £500 per month.
The idea also has roots in Alaska were since 1982 all residents are entitled to a yearly cash dividend taken from the Alaska Permanent Fund.
Scotland has 4 local authorities currently looking into the idea. And one hopeful US Democrat presidential nominee, David Yang is currently promoting his idea of a $1,000 a month “Freedom Dividend”.
A potential argument against would be- do we want a government being in control of so much of our finances which could be revoked at any time they decide? Although the main argument against it are that it would make people lazy and unmotivated. The arguments for it is the opposite, it will give people the opportunity to pursue their passions, without the fear they will not be able to survive.
Overall it sounds like an interesting incentive, let us know what you think, and please share this article.
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I am Luke Miller the author of this article, and creator of Potential For Change. I like to blend psychology and spirituality to help you create more happiness in your life.Grab a copy of my free 33 Page Illustrated eBook- Psychology Meets Spirituality- Secrets To A Supercharged Life You Control Here