In many countries around the world a return to lockdown is looming as a real possibility.

Where I grew up, in Australia, in my home state of Victoria, that’s now the case. Even a government-enforced curfew – no one allowed out after 8pm – is being enforced.

The economic costs of the virus, it seems, are mounting.

In many parts of the world, governments have responded with cash payments, made directly into citizens bank accounts.

And this could go on for some months more, unless a vaccine is found soon.

The current government payments are being funded with government debt. How long can any government keep doing that?

Stick with me on this, because it all ties in with the most famous economic reform you’ve probably never heard of.

You may remember this years US Democratic Party nomination process. A dozen or so contenders all wanting to be the their party’s presidential contender.

There was one candidate in particular who sort of grabbed my attention. That was Andrew Yang. And unless you followed the Democratic nominations in detail, the name may not mean much to you.

Well, if you didn’t know, let me say that Andrew Yang is a self-made, successful tech entrepreneur. But he was not ever likely to become the next US president. He was never a front-runner like the well-funded bigger names of Joe Biden and Bernie Sanders.

But he did come in the top ten or so.

Anyway, why did his run for president catch my attention?

Because the central plank of his campaign was to give each and every American a thousand dollars every month.

That’s right, no qualifications, no questions asked. Direct cash paid monthly into your bank account.
At the time the idea seemed bizarre. Silly even.

But now…

This is a world where we’ve just seen governments do exactly that; give direct cash payments to citizens. (Debt funded, remember.)

Stick with me here. It’s important.

Now when you research this and follow it all through, you’ll find that the idea of annual payments to citizens has some high profile supporters.

Facebook co-founders Chris Hughes and Mark Zuckerberg are proponents of the idea. As is tech billionaire Elon Musk.

Even right wing Reagan advisor and famed conservative economist Milton Friedman championed such an idea.

Critics who rage against the idea have two main arguments.

They say people should work for their money, not be given ‘handouts’. And that we can’t afford it. And how to fund such an idea anyway?

Supporters suggest such an idea could be funded by taxing corporate profits.

Or a tax on the wealthiest 1% of the population.

Or a value added tax – a GST – in other words.

All of these are taxes levied on production, note.

But here’s something for you.

There is a model (of sorts) that already exists. It’s working. And working very well.

That is, annual cheque given to citizens, no questions asked, with no qualifications is already happening around the planet. Here’s one example for you, amongst others.

Every October, all residents of Alaska get a cheque from their state government. It’s paid direct into their bank account. They don’t have to jump through any hoops to get it. You simply have to be an Alaskan citizen.

It is, in essence, a universal basic income.

It started back in the 1970’s when the Republican governor of the state of Alaska established the ‘Alaska Permanent Fund’. Putting a percentage of Alaskan oil and other resource revenues (Economic Rent) into a fund, which it then invested in other assets.

Money made on these investments is now distributed to all Alaskans in the form of an annual dividend. A ‘Citizen’s Dividend’, you could say. Just like Andrew Yang was suggesting.

Except the source of the funding is Rent, not a tax on productive activity. To date the annual payout has ranged between $1,000 and $3,000. Each and every year. To every single Alaskan citizen. Which, for a family of four, say, can be quite a handy yearly payment.

Did you know that this is what the Queen of England does too?

Oil wealth has no production value. It’s a natural resource. And the greatest natural resource in the world, (the oil geyser that never stops gushing), is land values.

Especially inner city land values.

And the Queen owns a lot of this inner city (London) land value.

You can read all about that HERE. It’s a free e-book for you. It’s titled ‘Your Citizen’s Dividend’.

It’s free and can be downloaded by you without obligation.

How is it that in a world of infinite abundance, we’ve created a world of scarcity and fear?

And not only that, we’ve created an economic system where those who probably do the most for society, nurses, doctors, caregivers, are often paid the worst.

And paid far less than bankers and speculators that seem to do far more damage to our economic system than anyone else.

You can download ‘Your Citizen’s Dividend’ HERE.

I guarantee you a very interesting (quick) read.

Best wishes

Phil Anderson
and your Property Sharemarket Economics team.