Reflection of the United States Universal Basic Dividend Plan Created by Dr. Steve Trost

Overview

Overall, the plan Dr. Trost prefaces is an ideological switch from the current income system, with 16% of the total GDP being split across the entire population of the United States, including people under 18. This would also include a 25% flat tax on additional income gained outside of the GDP dividend. One tax file, simplified, and universal for all official citizens. It is worth mentioning that no country currently has a full Universal Basic Income. Some countries have tried and tested smaller scale versions of it. Alaska even has a version of it based on the state’s oil production. But nothing as large scale as 16% of the United States GDP spread over 334.9 million residents.

Politically Unfeasible

The Universal Basic Dividend plan that Dr. Trost created, structured, and shared with much thought may be okay in concept if one is supporting of a Universal Basic Income for the United States, however, it is entirely unfeasible politically. First, one of Dr. Trost’s non-negotiables was that this plan needs to be an amendment to the constitution to prevent fiddling by politicians. The last amendment to the constitution was in 1992, and the one before that in 1971. Getting an amendment based on Universal Basic Income would be highly unlikely to ever pass, especially seeing how split Americans are on the idea of it, not to mention that amendments are very rarely passed in the first place.

Potential Benefits Shared by Dr. Trost

Now, the alleged benefits that Dr. Trost stated that could occur from this plan include: the freedom to walk away, the government doesn’t have to protect or aid companies and industries, and it becomes easier to start businesses. But do these issues constitute all the trouble and effort that would go into convincing and potentially switching to an entirely new universal income system for all citizens? I would say no. In my opinion, these benefits can be achieved already and are not worth solving by switching to a Universal Basic Income system, which would never get ratified in the first place.

Freedom to Walk Away in the United States

This is the United States of America, you have the freedom to walk away even with low income. Unfortunately, most people stuck in situations are there because they made bad decisions with themselves, their relationships, or have something else occurring regarding other social issues. These are issues that cannot be solved with a few grand. People that are raised in high-crime, low-income areas either dig themselves out of the trenches or get buried in the mud. We’ve seen tons of success stories of highly talented individuals that come from areas of poverty and can make a better life for themselves and their families. This may just be coming from the perspective of a person that grew up middle class and hasn’t seen the struggle firsthand, but I do think if you have that grind you can turn anything into gold. That’s what should be incentivized. And what’s to say they won’t just stay in the same area that they’ve always been with their friends and family nearby, I highly doubt 10 thousand dollars per person would be enough incentive for leaving, especially when everyone gets a similar amount.

Protecting Big Companies and Industries

The second benefit is that the government no longer needs to protect and aid big companies and industries struggling, but I would highly disagree. The government doesn’t just protect companies and industries to keep jobs, some of these industries are highly important to the backbone of the United States. Different subsidies and support are applied for several industries, including agriculture, manufacturing, energy, and transportation due to their importance in providing for American citizens.

Easier to Start Businesses

And lastly, would it really become easier to start a business? Creating and running a business is never an easy feat. The amount of dedication, heart, and grind that one needs to put into getting a business off the ground is astronomical and having a few thousand more dollars will not separate the successful business owners from the unsuccessful ones. Most business owners take that risk to create what they are passionate about and believe in, and make it happen regardless of the money. Look at the creator of Raising Canes, he worked as a salmon fisherman in rough Alaskan waters to get himself enough money to open his first restaurant. People make things happen when they believe in it. That means when they take out massive loans and put their entire life into it, and that’s because they are truly dedicated to making it happen. This is what the essence of entrepreneurship is, that “failure is not an option” mindset. Therefore, I don’t see how giving more money will make it easier to start a business. If anything, more people will end up having a failing business.

Todd Graves in Alaska working as a commercial Sockeye Salmon fisherman on his 25th birthday in order to raise money for the first Raising Cane's restaurant. Image Source (Todd Grave's Twitter/X)