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What is a social dividend?

Social dividend

A social dividend is the return on capital assets that are owned by society in a socialist economy. In a socialist economy profits are distributed equally among citizens in the form of dividends, and can be used to provide a basic income for all.

Where have you heard aboutsocial dividends?

Polish economist and diplomat Oskar Lange is widely credited with coining the term “social dividend” in his model for market socialism, which is an economic system that favours public, cooperative and social ownership over capitalism.

You may have heard about one of the many lobbyist groups that campaign for wealth and prosperity for all. They believe abolishing the welfare state and utilising social dividends will bring many benefits, including enabling older people to live with dignity and moving towards a classless society where everyone is paid equally.

Social dividend systems are in existence. In Alaska, for example, citizens own some of the county’s natural resources and any profits generated are shared.

What you need to know aboutsocial dividends.

Under a social dividend system, all citizens would be entitled to earn their salary and also receive their share of profits from publicly owned enterprises. Unemployed citizens would still earn money in the form of basic income.

The introduction of social dividends would help to reform economic systems that favour the rich, helping increase the living standards of all.

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