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Wealth & Economics > Citizen's dividend, Dutch disease and pertaining issues

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message 1: by Nik (new)

Nik Krasno | 13813 comments Thanks to Jeffrey for drawing attention, I'd checked a little on the net about Alaska's paying dividend to its residents.
All seems nice: Oil companies pay royalties or whatever for extraction of oil, the proceeds go into a special fund, which pays a certain annual dividend to state's residents:
https://en.wikipedia.org/wiki/Alaska_...
Not something to live off, but - nice.
The premise of natural resources belonging to the people is something I agree with. How to deal with the proceeds it's another issue.
There is this notion of a 'Dutch disease' under which seemingly positive events (like discovery of large natural resources) have a long term negative influence on the economy. For those who'd want to know a little more, here:
https://en.wikipedia.org/wiki/Dutch_d...
http://www.economist.com/blogs/econom...
So, now economists suggest to distance the proceeds from the economy, thus neutralizing the impact.
Hence various funds - tagged 'for future generations', 'stability funds' and similar, accumulating and managing revenues from natural resources.
We have the similar situ with recent discovery of large gas fields in the Med, the proceeds of which are supposed to be routed to a fund, managed to the benefit of 'future generations'.
Now, I say, Ok, what about this generation? If the underlying premise is that the proceeds (oil revenues/gas revenues/whatever revenues) are mine, why should I see only a small fraction of the money and who gets to decide how much of my money I will receive?
As we can see (provided Wiki gives us correct info) in Alaska's example the last dividend was supposed to be 2K, however the governor reduced it to 1K.
Payment of a dividend is probably a positive thing, but the entire attitude is a bit patronizing where someone decides what to do with our money.
What do you think?


message 2: by Jeffery (new)

Jeffery J. | 96 comments Nik wrote: "Thanks to Jeffrey for drawing attention, I'd checked a little on the net about Alaska's paying dividend to its residents.
All seems nice: Oil companies pay royalties or whatever for extraction of o..."


Hear, hear, Nik!


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