More on consumption payments

The consumption payment program (see previous post) would also:

     Reduce or eliminate ordinary welfare, also SSDI (ultimately)
Since welfare is administered by the states, while consumption payments would be administered by SSA, this would tend to reduce the impact and variance of the state welfare bureaucracies.  [States could continue welfare programs with state funds]
Consumption payments would be figured in in determining need for programs such as food stamps or other welfare programs.
Would provide low wage laborers a place to deposit paychecks (the bank required for direct deposit by SSA)
Would be avoided by illegal immigrants (because to be eligible, the recipient must apply for a SSAN, which includes info relative to citizenship, thereby favoring citizens at the expense of immigrants).  Thus the payday loan companies would not be completely out of business.
Fraud in applying for an SSAN would carry penalties, including deportation; however the fraud would have to be proved in law (or admitted.)

Consumption payments

This post proposes the payment, in the United States, of a certain amount - for example $200 a month, to every individual, for the purposes of maintaining minimum levels of economic consumption.  Payments would be made through the Social Security System.

Consumption payments would not be welfare, as they would be distributed equally to rich and poor.

Consumption payments would encourage every individual to enroll early in the Social Security System and to obtain a bank account, as the Social Security System prefers to make direct deposits.

With the guaranteed monthly deposits, banks would be motivated to open deposit accounts for all persons with a Social Security number.

Although not intended as welfare payments, consumption payments would nevertheless serve as an economic force to reduce poverty.

Consumption payments would be taxable as ordinary income, thereby requiring all persons receiving consumption payments to file tax returns.

With automation gradually taking away employment in the production sector, and the resulting unemployment maintaining downward pressure on wages in the service sector, consumption payments would reduce the effects of unemployment on reducing consumption in the United States, thereby benefiting landlords and retail businesses.

As enrollment in the Social Security System is a form of documentation, requiring the applicant to provide a domicile address, the consumption payment program would reduce the number of undocumented persons in the United States, thereby assisting the immigration program.