So What Can We Do About Inequality? | Institute for New Economic Thinking
The basic income is very close to the idea Thomas Paine put forward in the 1790s. (Paine’s proposal, by the way, is on the website of the U.S. Social Security Administration). That proposal is something that I and many others think is really interesting, which is that everyone, on reaching the age of 18 or so, should receive a capital payment. It would be like a negative capital tax. That idea was also proposed years ago in America by Bruce Ackerman, a professor of law at Yale.
A capital payment, or capital grant, would contribute to solving the problem of the intergenerational distribution of income, which is something I stress in the book. That is a serious problem, which I found, for example, in discussions with Korean journalists and economists. They are very worried about generational divide — concerned that the older people have benefitted from growth and the younger people are struggling to find jobs and so on. Some of the measures I propose are designed to take money away from my generation and give it to younger generations. The capital grant certainly would do that.