Basic Income, Shareholder Value, Health Care, Taxes

I was reading up on Michael Tubbs, the former Stockton Mayor who started a basic income pilot. I was curious why he didn’t win reelection. Here was the story I found.

He has started a larger group of Mayors championing a basic income. That is a great legacy of his career so far.  

In other basic income pilot news, Sam Altman’s Y-combinator is still working on their basic income pilots. And Sam Altman has written a very thought provoking piece on basic income. He proposes this income be funded by the following – “We could do something called the American Equity Fund. The American Equity Fund would be capitalized by taxing companies above a certain valuation 2.5% of their market value each year, payable in shares transferred to the fund, and by taxing 2.5% of the value of all privately-held land, payable in dollars.” 

This year Apple is spending $90 billion in share buybacks, which is about 4% worth of their company value when valued at $2.17 trillion dollars.

As far as how profitable other companies are, the answer is “very profitable”. 

“We already have American tax payers supporting companies, first banks and GM  in 2008 and now airlines in 2020 when they might go bankrupt, or when they do. But the American People aren’t getting paid back for their support. 

So I think it’s only fair for taxpayers to get a substantial piece of the upside in return for bailing out these companies. And in the process, bailing out their shareholders, who would be left with nothing if the companies failed.

Yes, this is the same point I made last week about a taxpayer bailout of Boeing.

But it’s a point that we should keep in mind every time we see companies line up at the bailout trough. If many of these companies hadn’t spent lots of money to buy back their own stock to prop up its price, they wouldn’t need anywhere near as much money as they need now.

That’s especially true of these four airlines. Almost seven out of every eight dollars the four airlines sent Wall Street from 2015 through 2019–$39.1 billion out of $44.7 billion — went for share buybacks. The rest went for dividends, according to my calculations based on the companies’ Securities & Exchange Commission filings.” – Washington Post

We need to move to a system that focus on humans, not the economy and profits. 

This would be something similar to human centered capitalism, as promoted by Andrew Yang. 

We already have some institutions that their sole driver is not profit. Credit unions supposedly have their owners, who are also their users, needs as a priority, instead of just profit. 

Vanguard is a company that both serves it’s owners and it’s users.

If we increased the base of each companies shareholders to include everyone, there would be more incentive to “help everyone” instead of “maximize profits”.

While researching this I stumbled upon this series of articles about Stakeholder value. It is quite interesting. Here are some top comments, but I suggest reading it for yourself. 

“The most successful firms today are those that pursue what Peter Drucker long ago saw to be “true North” for a corporation: “there is only one valid purpose of a corporation: to create a customer”. Generating fresh value for customers is the foundation the basis for generating benefits for all the stakeholders.” – Forbes

Finally, another thing that would help small business and entrepreneurs everywhere, as well as helping people stay health is Universal health care in the USA.

“You know what would really help me as a business owner? Universal health care. The money we pay to subsidize employee health care is astronomical and grows every year. I’ll happily pay higher taxes to cut out health insurance companies that make $40 billion a year in profit.” – Dan Price CEO

Admittedly this is a fairly loosely held together narrative of ideas I’ve been thinking about lately, but I hope by sharing them it gets other people thinking about them too.

Mark Zuckerberg – Basic Income

Upsate 7-24-02018

It looks like UBI potentially funded by “the 0.01% is being discussed again.

Update 9-22-02017

It looks like Y-combinator is embarking on a basic income  experiment similar to what I proposed Mark Zuckerberg do. This is a good thing as it’s still an individual/private group doing experimentation that government can’t/won’t do.

“YC will select 3,000 people across two states and divide them into two groups. The first group will include 1,000 people who will receive $1,000 a month for up to five years. The second group of 2,000 people — which the study will consider its control group — will receive $50 a month.”

Original 5-29-02017

Mark Zuckerberg gave a speech for the Harvard commencement ceremony this year (2017). In it he advocated for a universal basic income, which is something I’ve been thinking and reading about for a few years. The most important question about a basic income is “Who pays for the basic income?” Some people have thought about this more than I have. You can read about how one guy thinks we should pay for a basic income here. There have even been a few basic income programs in the past. You can read about one happening in Finland here, as well as in Kenya here.  

When you have an idea as big as a basic income you need a path to get there. You don’t just implement a basic income to a whole country. I am often trying to figure out how to implement ideas fast, not necessarily perfectly.

I am excited that someone with as much wealth (from Facebook stock ownership) as well as a desire to change the world for the better (as self reported by Zuckerberg multiple times) is interested in a basic income. Luckily Mark Zuckerberg is a billionaire and his stock is rising, literally. Facebook is worth more every year. This gives Zuckerberg the rare opportunity to implement his own basic income study! No one can stop him! And if it goes well he will be able to prove to people that a basic income is a good thing that should be implemented wider.

If Zuckerberg owns $63 billion in Facebook stock. it should grow at at least 4% a year, which means he could sell $2.5 billion a year, and use that to provide a basic income. Which means he could give 25,000 people a basic income of $100k a year!

Since this is a test and that’s a lot of money and this is supposed to be a basic income, he could provide an income of  $30k to say 500 people, this would be $15 million a year, a pittance that Zuckerberg wouldn’t even notice! I think he should do this for say 5 years, and see what happens with those people.

We need this kind of leadership to show us that this type of program could work.

$30k*500 people =$15 million *5 years = $75 million over 5 years.
How much to manage this program? $25 million maybe? (maybe way less!) For a cool $100 million over 5 years.

Until someone is willing to run this type of program and shows that the people who receive the money come out more successful than otherwise, and that they aren’t just being lazy, it won’t receive large scale acceptance.

I believe this is a program Zuckerberg should take on with his new Chan Zuckerberg Initiative LLC (not a charity, which is fine, I think businesses can potentially make more changes in the world than charities, or at least it takes all kinds!). If he wants to contact me to discuss further why I think he should do this he can find me at

Alternatively, he could contact the nice people at Give Directly, who I mentioned earlier. They seem more versed in administering something like this and could probably run the program for less than $25 million!