Social Dividend
A social dividend is a distribution of income or benefits to the public, derived from the collective ownership of natural resources or publicly owned enterprises. Unlike traditional dividends, which are paid to shareholders, social dividends are meant to benefit the broader society. This concept is often associated with economic systems where public ownership plays a significant role, such as in socialist or cooperative economies.
Example
In a country where the government controls natural resources like oil, the profits from these resources might be distributed to all citizens as a social dividend.
Key points
• Income or benefits distributed to the public from collective ownership.
• Tied to the profits of publicly owned enterprises or natural resources.
• Aimed at benefiting the broader society rather than individual shareholders.