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Sovereign Wealth Funds (SWFs) are state-run investment funds used to financially benefit a state and its economy. The sources of a SWF’s revenue may vary but often originate from the monetization of the natural resources of the state. While they exist worldwide, only one SWF, the Alaska Permanent Fund, is used to finance a permanent fund dividend (PFD). A PFD takes a portion of the SWF's money and distributes it equally among the state's population, which makes a PFD a form of basic income. This paper discusses how California might create its own SWF from the state's natural resources––land, oil, etc.––to fund a per capita annual payment. The Alaska Permanent Fund will serve as a model for this study, and estimates of the value of California's natural resources will be made through analysis of government and public databases.



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How California Can Create a Sovereign Wealth Fund to Support a Basic Income