Redesigning Distribution: Basic Income and Stakeholder Grants as Cornerstones for an Egalitarian Capitalism

In a system of basic income, as elaborated by Philippe van Paijs, all citizens are given a monthly stipend sufficiently high to provide them with a no-frills, but adequate standard of living. This monthly income is universal rather than meanstested, and it is unconditional - receiving the basic income does not depend upon performing any labour services or satisfying other conditions. It affirms the idea that as a matter of basic rights, no one should live in poverty in an affluent society. In a system of stakeholder grants, as discussed by Bruce Ackerman and Anne Alstott, all citizens, upon reaching the age of early adulthood receive a substantial one-time lump-sum grant sufficiently large so that all young adults would be significant wealth holders. Ackerman and Alstott propose that this grant be in the vicinity of $80,000 and would be financed by an annual wealth tax of roughly 2%. A system of stakeholder grants, they argue expresses a fundamental responsibility: everyone has an obligation to contribute to a fair starting point for all.