13 Facts About Social dividend

Social dividend is the return on the capital assets and natural resources owned by society in a socialist economy.

The social dividend can be regarded as the socialist analogue to basic income.

Benefits of a social dividend include broadly sharing the benefits of economic growth and technological progress, greater autonomy for individual citizens, greater social and income equality, and eliminating class differences in society arising from labor income and property income.

The social dividend has advantages over a basic income by addressing the criticism that a conventional basic income can be used as justification to weaken labor protection laws and unemployment compensation, creating a population dependent upon the subsistence levels of income afforded by the basic income, and might serve to further impede the transition to a post-capitalist society.

In Lange's model of socialism, the social dividend would be one component of the income to consumers alongside receipts for labor services.

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Abba P Lerner contributed to the idea of a social dividend by incorporating it into Lange's original model of socialism as a lump-sum payment to each citizen as not to effect the efficient operation of labor markets.

Abba Lerner's social dividend proposal was a modification of Lange's, where the social dividend would be distributed as a lump-sum payment and not be distributed proportionally to wages as to not disturb the efficient allocation of labor in the labor market.

In Lerner's The Economics of Control: The Economics of Welfare the social dividend serves as an economic lever for preventing inflation and deflation.

The social dividend represented the citizen's share of the earnings of the factors of production other than labor, but in Lerner's model, it is distributed in a way that induces consumers to spend the right amount which along with investment demand for factors would provide full employment.

Lerner's model proposed that inflation and depression could be prevented in a socialist economy by adjusting the level of the social dividend: if spending is too high, the social dividend could be set to zero or a negative to reduce demand.

American economist James Yunker, as a function of public ownership of the means of production the social dividend represents the most important and fundamental benefit of a socialist system.

The goal of the proposed social dividend fund is to share the results of reform and development of Shenzhen's state-owned enterprises.

Social dividend systems have been implemented in limited form on the basis of public ownership of natural resources in the state of Alaska through the Alaska Permanent Fund and in Norway by the Government Pension Fund of Norway.