Andrew Yang proposed a Freedom Dividend of $1,000 to every person over 18 years old. In this article, I intend to discuss the genius of the Freedom Dividend compared to other options.

We could do nothing to help the lowest earning population. Meaning that neither the minimum wage would increase, nor would anyone get the $1,000 per month Freedom Dividend. But that would make no difference in the lives of those struggling to make ends meet.

We could raise the minimum wage to $15/hour. Minimum wage increase is the plan posed by most Democrats in previous elections, so it has a history of acceptance. But, increasing the minimum wage will hurt more than it helps. When wages increase, it becomes difficult to keep jobs in the U.S.A., because it makes it cheaper for corporations to move their operations to foreign nations. Also, it hurts smaller businesses that cannot afford to pay workers a higher wage. Also, employers tend to become more averse to hiring when wages increase, meaning that many workers will have trouble finding work. Also, if millions of jobs continue to be lost to automation and to the overseas workforces, minimum wage increase will do nothing to help.

The Freedom Dividend gets the money to the people who need it most even if they have a job. Meaning that the people will have incentive to get a job even after they receive benefits. But if they absolutely cannot find a job, they won’t have to fret that their family nor they will have to go hungry while they are searching. And since the minimum wage won’t increase, there will likely still be options for work.

The Freedom Dividend is also a stimulus solution. $1,000 per month in the pockets of every person over 18, will encourage spending in several marketplaces that would not otherwise occur. It’s what Andrew Yang calls a trickle up economy.

Andrew Yang’s plan for a Freedom Dividend is not just a cool handout. It’s a work of genius.