Social dividend
Encyclopedia
A social dividend is a proposal for allocating surplus value
, or economic profits, generated by publicly-owned enterprises in a socialist
economic system. A social dividend would provide every citizen a share of the profit generated by publicly-owned enterprises, potentially eliminating the need for the social welfare programs and income redistribution programs that exist under capitalism
.
Oskar Lange
is credited with the first use of the phrase. In Lange's theory of market socialism, a central planning board allocate the profit and rent accrued by public enterprises to achieve economic growth targets and ensure a reasonable amount of social equality through a provision of a basic income to consumers.
Leon Walras
, one of the founders of the neoclassical
school of economics, believed that nationalized land and natural resources would provide a source of income to the state that would eliminate the need for income taxes
.
An employee is entitled to a share in the dividend along with their wage or salary. An unemployed individual would also be entitled to a share of the social dividend as a form of basic income.
Surplus value
Surplus value is a concept used famously by Karl Marx in his critique of political economy. Although Marx did not himself invent the term, he developed the concept...
, or economic profits, generated by publicly-owned enterprises in a socialist
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
economic system. A social dividend would provide every citizen a share of the profit generated by publicly-owned enterprises, potentially eliminating the need for the social welfare programs and income redistribution programs that exist under capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
.
Oskar Lange
Oskar Lange
Oskar Ryszard Lange was a Polish economist and diplomat...
is credited with the first use of the phrase. In Lange's theory of market socialism, a central planning board allocate the profit and rent accrued by public enterprises to achieve economic growth targets and ensure a reasonable amount of social equality through a provision of a basic income to consumers.
Leon Walras
Léon Walras
Marie-Esprit-Léon Walras was a French mathematical economist associated with the creation of the general equilibrium theory.-Life and career:...
, one of the founders of the neoclassical
Neoclassical economics
Neoclassical economics is a term variously used for approaches to economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand, often mediated through a hypothesized maximization of utility by income-constrained individuals and of profits...
school of economics, believed that nationalized land and natural resources would provide a source of income to the state that would eliminate the need for income taxes
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
.
An employee is entitled to a share in the dividend along with their wage or salary. An unemployed individual would also be entitled to a share of the social dividend as a form of basic income.
See also
- Basic incomeBasic incomeA basic income guarantee is a proposed system of social security, that regularly provides each citizen with a sum of money. In contrast to income redistribution between nations themselves, the phrase basic income defines payments to individuals rather than households, groups, or nations, in order...
- Public enterprise
- Socialist economicsSocialist economicsSocialist economics are the economic theories and practices of hypothetical and existing socialist economic systems.A socialist economy is based on public ownership or independent cooperative ownership of the means of production, wherein production is carried out to directly produce use-value,...
- Sovereign wealth fundSovereign wealth fundA sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
- Market socialismMarket socialismMarket socialism refers to various economic systems where the means of production are either publicly owned or cooperatively owned and operated for a profit in a market economy. The profit generated by the firms system would be used to directly remunerate employees or would be the source of public...
- Negative income taxNegative income taxIn economics, a negative income tax is a progressive income tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes to the government. Such a system has been discussed by economists but never fully implemented...