A case for minimum guaranteed income, with responsibility on people

by Jun 26, 2020Thinking outside the bottle0 comments

universal basic income

Paulo Pinto

Alti Wine Exchange founding member

Greetings, dear reader,

If you have been reading my latest posts on issues that range from global markets and trends in economy and finances to fine wine investment, you know I have been suggesting the need for a new type of Central Bank: one that has the people at the core. I call it the Central Bank of Social Security.

Well, I am back again, and this time with some debate on a recurring theme in my recent articles on the issue: the debate on minimum guaranteed income.

One of the comments we have received from my recent text on Central Banks of Social Security was: “This is just a way of keeping people poor and dependent on the government”. Another comment we received was: “This is a sure way for governments to go broke.”

Let’s start with the second comment.

The reason to create a Central Bank of Social Security is exactly for the government not to go broke. What happens now in countries with their own Central Bank is: governments make promises, then they have to borrow money, then their debt increases, then the Central Bank prints money.

What happens after as a result is, that local currency devalues, people start to blame the rich, then more money flows out of the country and then Central Bank needs to print more money. This sequence, when out of control, results in situations like Argentina, or Venezuela or Zimbabwe.

* * *

As debt increases it restrict economic growth, it is also the catalyst for more taxes, because a fiscally challenged government never makes itself smaller, increasing taxation instead.

At this point, savers are under attack and the purchasing power of the currency is diminishing, with public faith in it eroding – driving people to park money in a different currency or gold for safety and fear of more currency depreciation.


With a Central Bank of Social Security, this dogma changes and we need to accept a new one:

All individuals over 18 will receive minimum guaranteed income tax free, and this will replace all other subsidies in existence.

Minimum guaranteed income is cumulative with salaries, and it’s up to people to save it or to spend it.

This is not a system to make us all equal, because we are not. There is only one Messi, one CR7, one Michael Jordan, and many other different players with different skills and different levels of professionalism.

What this Central Bank of Social Security will allow is for people to have a minimum level of dignity and a tool to shine in life with their own skills, and be happy with themselves or not.

This will allow to put back the responsibility on people and out of the government. If people decide to live on the minimum guaranteed income it’s their choice, but they cannot have claims on failed promises from government.

Life is made of individual choices, and a Central Bank of Social Security will reinforce those choices.

‘Paying to generate unemployment?’

I can hear you already saying, “Pay people not to work… and you’ll get people not working”.

This, of course, it’s one way of seeing it and there are probably people willing to do just that, but the goal is providing them the tools with dignity to do whatever they want – to bring added value to society, or to be part of the ‘’useless class’’.

If they want to study to improve further skills, they can – and, like that, guarantee later jobs that pay more. In no circumstances they have to feel unemployed or out of the market. If they want to work and put the money of the minimum guaranteed income into an investment account, they can: it’s only their choice.

This will answer the first question. It will be people individually deciding if they want to be poor or rich if they want to be consumers or producers. It’s a system that will allow anyone to be really good at what they want – or spend a lifetime trying.

Explore More from Our Blog

Alti Wine Exchange Indexes: 2022 overview and outlook for 2023

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

Alti Wine Exchange Indexes: 2021 overview and trends for 2022

Sergey Glekov Senior financial analyst The Alti Wine Exchange Indexes are a family of equal weighted indexes which trace price performance of fine and rare wines and shows equal weighted average returns on them. The indexes are subdivided by most important wine...

They have created the perfect storm for controlled demolition of money

I’m glad to be back talking financial insights, one glass of wine at a time. First they shut down the economy, to save lives. With the closure of the economy, production ceased. To compensate for non-production or reduced production, people were paid not to lose...

Spanish Cava Sparkling Wine: What You Need to Know!

Spanish Cava Sparkling Wine: What You Need to Know!

What is a Port Wine?

DEAR READER, Let’s start February off with a simple question: Good morning, Mr. Ferdinand, What is a Port wine? -Jacques Thank you, Jacques, for your brevity. Let’s get down to business! Ports are an underrated, very particular type of wine made in the Douro Valley,...

What to Expect for Fine Wine Investments in 2022

Let’s face it, between an ongoing COVID pandemic, erratic markets, fires, floods and major humanitarian crises, 2021 was exhausting. And though none of us can be sure what to make of 2022, we can say with confidence that fine and rare wine investments are looking...

Holiday Gift Guide for Fine Wine

It’s that time of year again! And so begins the search for the perfect holiday gift. Something unique, something that shows you truly care. How about a gift that keeps on giving? An investment. Imagine their surprise when you tell them that their gift is resting...


DEAR READER, As I grow immensely in popularity, I’ve noticed more of you interested in my personal life. I didn’t begin e-blogging with this in mind, but I don’t mind indulging every now and then. I imagine my intellect intimidates a lot of you, so maybe shedding some...

The Truth about Fine Wine

Fine wine. What does that really mean? The truth is, as words, they don’t mean much. There is no official classification system for the title “fine wine.” It’s not like the regulated usage of “Premier Cru” or “Grand Cru Classé,” for example, rather anyone can throw it...

Maipo Valley Reds

DEAR READER, I am again-and-again charmed by my readers’ curiosity! It reminds me of being a young sommelier, ready to take on the world one glass at a time. I know far too much to feel that way again—but at least I can experience a shred of it through you all! Dear...

Liquid Harmony

Harmony. Think Crosby, Stills, Nash & Young. Think Picasso's The Old Guitarist. It’s that moment when various elements come together to create magic. And magic really is the word, no? Wine can also sip in harmony, and I can think of no better example than the...

Where Does the Phrase “Aging Like Fine Wine” Originate?

DEAR READER, I received this charming question from an inquisitive reader last week. Dear Sommelier Ferdinand, Where does the phrase “aging like fine wine” originate? It’s so fun! -Imani I just love your question! What a lively spirit you have, Imani! I’m more of a...