Why does alaska pay its residents

So how do you qualify for the Permanent Fund Dividend? You must meet the following qualifications:. The Permanent Fund Dividend certainly sounds like Alaska is one of those places that you pay you to move there, and in fact, it is.

The Permanent Fund Dividend is an incentive to move to Alaska and set up permanent residency. As a part of the eligibility process, you must demonstrate your intent to live in Alaska indefinitely. This goes beyond showing your physical presence in the state.

This isn't the first program Alaska has offered to entice people to move in — in the s, the Homestead Act offered free land to people willing to live on the land of 5 years, build a home, and develop agriculture.

While the Permanent Fund Dividend is a novel way to share oil royalties with its residents and provide a great incentive to move to Alaska, it's probably not the ideal place for most people to live in the big picture. Despite Alaska's natural beauty and vastness, it presents many challenges to those who live there — such as the higher cost of living, remote isolation, and cold temperatures.

Ensure that Alaska is somewhere that you can live comfortably — if you're used to living in a big city, it might not be a great fit. This website uses cookies to offer you a better browsing experience. Republicans control the government of Alaska — just as they now control the US federal government — and Republicans tend to defund public services and thwart attempts to raise taxes on the wealthy.

The situation unfolding in Alaska demonstrates how economic precarity, paired with an entrenched reliance on an annual check, can result in deep political dysfunction. How might the government salvage this vital yet troublesome program? Alaskan lawmakers have proposed codifying the formula for the dividend check amount in the state constitution as a way of settling its perennial political battles.

In theory, this would isolate the PFD from opportunistic politicians, but the reality would be more complicated. How exactly to calculate the amount alone is a vexing and deeply political question. Introducing more rigidity to the process might make the state even less adaptable to oil market fluctuations. Aspects of the PFD show tremendous promise for a similar nationwide program — it signals the US would see reduced poverty, a buoyed economy, a greater sense of ownership over the country.

Cash is a uniquely motivating incentive. And because UBI does not have the same tinge of big government as other entitlements, conservative political movements can readily claim UBI for their own and use it as a cudgel to dismantle public programs. Alaska demonstrates that when you start giving people money, the act may very well eclipse every other political concern and blot out all other missions of government.

She was the campaign manager for Alaska State Rep. Jonathan Kreiss-Tomkins D in Sign up for the Future Perfect newsletter. Looking for a quick way to keep up with the never-ending news cycle? Host Sean Rameswaram will guide you through the most important stories at the end of each day. Subscribe on Apple Podcasts , Spotify , Ove r cast , or wherever you listen to podcasts. Our mission has never been more vital than it is in this moment: to empower through understanding.

Financial contributions from our readers are a critical part of supporting our resource-intensive work and help us keep our journalism free for all. Please consider making a contribution to Vox today to help us keep our work free for all. Cookie banner We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from.

But in , then-Governor Bill Walker reduced it by about half, as low oil prices led to a multibillion-dollar state budget deficit. The dividend comes out of that same pot. In , both main gubernatorial candidates promised to protect the PFD. Winner Mike Dunleavy pledged not to cut it again and to disperse funds retained since , advocating deeper spending cuts and more oil development instead. Low oil prices have already caused three years of recession in Alaska.

Oil prices are rising but Alaskan production has fallen significantly since its peak though a recent report suggests large quantities of recoverable oil and gas remain in the North Slope Basin. The Economics of Change. Share using Email. By Cody Liska 20th December Each year, Alaska sends each resident a cheque in the mail.

Cody Liska explains why. Video by Michael Downey.