One of the main issues and arguments commonly brought up against modern capitalism is that workers do not have enough investment within the current economy, leading many to believe that the system does not work for the the majority. This division will continue to exist as long as capitalism does. However, there is an idea that could solve this problem in theory – an investment grant given to every citizen.
What is a citizen investment grant? The idea has been around for while due to countries such as Denmark playing with the idea in the early 2010s. Its premise is that government will give all their citizens a one time grant of £1000 each – which can only be used in investing in stocks or businesses. This would allow and encourage people to buy dividend stocks within their own places of work.
The theory behind this is a simple one. If workers have a means of investing in stocks or shares, it can generate an additional source of income for workers in addition to selling their labour. This will make workers more personally invested within economy as its citizens, encouraging them to work harder and less likely to shake up the system due to them having a financial incentive to not do so.
There are many cases for implementing a policy like this, even from both side’s of political spectrum. When basing the augment on morality, it comes from trying to solve the wealth gap and lack of investment within society that benefits all individuals. Through giving the working-class options to invest into a country’s society, a level playing field between both classes of the economy is ever greater.
From a conservative perspective, this policy can help people take control of their lives and encourage them to invest themselves into the workplace more, especially as they take more responsibility for the wealth of the company they are personally invested in. On the other side of the political spectrum, socialists can argue that this idea helps workers take ownership of their own labour through their investments.
This policy could therefore help solve many problems that face the financially-vulnerable workforce and the unhappy lower classes. Because of this, perhaps it is the solution many countries need to help deal with the problems emerging in modern day economics, especially with the onset of the coronavirus’s financial consequences.
Featured image credit: Michael Longmire
The Jackdaw Post 