Frequently Asked Questions

How large should Citizen Dividends be?

Large enough to meet basic costs of food and shelter, and perhaps health care. But not so large as to undermine incentives to work, earn, save, and invest. Somewhere in the range of $400 to $800 a month. Whatever the amount, periodic adjustments will be necessary as economic and political conditions change. Let's compromise and begin.

Can the U.S. afford Citizen Dividends?

Yes. This program will be less expensive and much more effective than current practices. We cannot afford to persist with failed approaches and be bound by discredited assumptions.

Are sufficient funds really available from cutting welfare and corporate welfare?

Two similar proposals have demonstrated the financial feasibility. Michael L. Murray calculated cuts sufficient to make monthly payments totaling $6,000 a year to every adult and $2,000 for each child; a professor at Drake University College of Business and Public Administration, his 1997 book is ...And Economic Justice For All: Welfare Reform for the 21st Century. Leonard M. Greene identified $720 billion that could be cut from social programs and called for payments of $1,000 a month to every family of four; the founder of the Institute for Socioeconomic Studies, his 1998 book is The National Tax Rebate: A New America with Less Government.

If higher taxes are necessary, should increases be on income taxes, fossil fuel taxes, other taxes on sales or consumption, or what?

With the goals of fairness and simplicity, with awareness that any tax discourages certain activities, and with attention to both immediate and long-term concerns, each of these should be adjusted as necessary. Contrary to current sentiment, taxes are not simply bad or undesirable. Taxes pay for essential government services. Taxes will fund Citizen Dividends. Indiscriminate opposition to taxes serves those interests that profit from the status quo.

What about children? Shouldn't parents with young children get a larger amount? And orphans, how will Citizen Dividends help them?

Including children would complicate things significantly, especially because some parents are absent or irresponsible. And it would compromise the equality inherent in the program. There are other ways to help children and parents.

Regarding orphans, homeless children, those who are abused, neglected, or abandoned: with Citizen Policies, people may be more eager and will be more able to adopt children or support child welfare services. Such services could be provided by secular or faith-based charities, leaving government as only the guardian or charity of last resort.

What about the very rich, like Bill Gates? Why should he get Citizen Dividends?

But how would you exclude him? It's much cheaper to make Citizen Dividend payments to the tiny percentage of the population that really doesn't need any help than to create a new bureaucracy and regulations to screen them out. Besides, any attempt to screen people out would erase the baseline of economic justice and equality.

Won't Citizen Dividends undermine people's incentives to work?

Most people have a strong and compelling work ethic. And there will still be countless reasons to work, earn, compete, and produce. The only incentives that will be undermined are those based on the fear or fact of hunger, homelessness, or other hardships: the coercion ethic.

Some people are lazy or irresponsible and likely to shirk Citizen Service. Shouldn't it be mandatory?

Would you shirk Citizen Service? Most people wouldn't, and it would not be cost effective to set up a bureaucracy to catch the few who would. Moreover, as we know from the system of jury service, people who are determined to shirk will find a way to do so, even if service is mandatory and enforced by serious penalties. And shirkers will not be a burden or a nuisance to others because they, like the rest of us, will have enough income for food and shelter, and added incentives to obey the law.

Some elderly or handicapped people are unable to perform Citizen Service. Will they still receive Citizen Dividends?

Of course. It's not for you or me or a government agency to judge people. Citizen Dividends will be what Tom Paine called for, "a right, and not a charity" that enhances the dignity of elderly and handicapped individuals. And perhaps they will find ways to serve.

Living expenses are quite high in some cities or states. Would it be possible to have varying levels of Citizen Dividends?

Yes, state or local governments could supplement Citizen Dividends. Such decisions should be made locally and funded by local revenues.

I see how this will help poor and middle-class Americans. But what about the very rich? Won't they be opposed?

The very rich are obviously doing well with the status quo, but they also have much to lose if America's problems worsen; some may be enthusiastic supporters. And each of us, rich or poor, has exactly one vote.

If government ends corporate welfare and subsidies, won't the stock market crash?

Some stock prices could fall, but government bonds will probably appreciate along with share prices for businesses that are helping to solve problems. Once established, Citizen Policies will promote long-term stability - social, political, economic, and environmental - and, consequently, stock market growth that is more sustainable and better attuned to the real interests of most Americans. And Citizen Dividends will make temporary stock dips less upsetting for average investors.

What if there's a recession?

In any recession, Citizen Dividends will protect ordinary Americans far better than current practices. And it would be quite simple to increase the amount to help end any recession.

What about inflation? Won't adding Citizen Dividends to the economy cause prices to increase, particularly for food and shelter?

If there is inflation, whatever the cause, we can adjust the amount of Citizen Dividends to relieve any hardships. We could add Citizen Dividends in phases, starting with welfare recipients. And we will be cutting existing programs at the same time. The transition should be smooth if government and the Federal Reserve Board are skillful.

How will Citizen Dividends be distributed?

Let's focus on the basic idea first. Once we agree on that, it will be easy to manage the details using debit cards, automatic bank deposits, or income tax deductions. If we end welfare programs and integrate Citizen Dividends with Social Security, distributing the dividends will be much simpler than current practices.

Could we try Citizen Policies in one state?

Perhaps, with support and appropriate waivers from the federal government. State and local officials - elected or appointed - are likely to be strong advocates because this program will significantly enhance local authority.

Are policies like this in effect anywhere? What about Sweden, Norway, or Holland?

In Holland and the Scandinavian countries, food, shelter, and health care are guaranteed, but governments are relatively socialistic and paternalistic, with massive bureaucracies and very high taxes.

A program like Citizen Dividends is operating in Alaska. Every year, each Alaskan resident receives an equal distribution from the Alaska Permanent Fund. Established in 1980, royalties from oil production go to the fund instead of state government, and money is invested so distributions can continue after the oil runs out. In 2000, every Alaskan received $1,963.86. With a single yearly payment, however, and no service or other commitment, the fund lacks a key feature of Citizen Policies: a constant reminder of one's rights and responsibilities as a stakeholder.

This sounds great, really sensible and powerful. But will the American people accept it?

Let's ask residents of Alaska. They accepted the Alaska Permanent Fund, and in 1999 voted overwhelmingly against an initiative to curtail it. Instead of making assumptions about "the American people," or using polls that elicit knee-jerk responses to misleading questions, it's important to educate ourselves and others. That's crucial because people who oppose reform will misrepresent the idea, calling it socialism for example, in order to confuse or distract us. The best way to educate is to talk to people as individuals, directly and personally.

I can sure use Citizen Dividends. An extra $400 or more each month would dramatically improve my quality of life. What do I have to do to get it?

Tell your friends. Post messages on the Internet. Discuss Citizen Policies on talk radio. Write letters to newspapers and magazines. Appear on community television. Talk to elected officials and their opponents. Or run for office. If We the People demand it. . .