The challenge
Alaska wanted residents to share directly in the state's oil wealth.
The case
Since 1982, Alaska has paid every resident, including children, a yearly dividend from the Alaska Permanent Fund, a state investment fund built from oil revenues. The payment was as low as $331 in 1984 and has generally been above $1,000 since 1996. Economists compared Alaska with a 'synthetic' Alaska built from other states. They found the dividend had no effect on employment and increased part-time work by 1.8 percentage points (17 percent). They say this fits with the cash stimulating the local economy, and jobs in sectors serving local customers responded more than others. Jones and Marinescu found the dividend had no effect on employment and increased part-time work by 1.8 percentage points (17 percent).
Why it worked
It is the longest-running universal cash payment in the US and has strong public support across party lines. Owning the fund and paying everyone equally made the program hard for politicians to cut.
Sources
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