Research on a Novel Social Welfare Framework Based on In-Kind Benefits and Contractual Consumption Systems

Abstract

In the post-industrial era, overcapacity and demand contraction coexist, while precautionary savings and corporate reluctance to raise wages lock society into a destructive zero-sum equilibrium. Traditional welfare instruments—cash transfers, UBI, and fiscal stimuli—fail to prevent leakage, inflation erosion, or fiscal penetration. This study proposes and rigorously demonstrates a novel welfare framework based on in-kind defensive guarantees and contractual consumption. The system operates through three pillars: (1) a minimalist, de-industrialized material safety net decoupled from monetary inflation; (2) unlimited emergency credit collateralized by implicit labor and spatial mobility, eliminating precautionary savings; and (3) voluntary contracts where signatories cede consumption discretion in exchange for survival security, with default triggering temporary mobility restrictions—enabling a forced marginal propensity to consume of unity. Through axiomatic proof, multi-agent simulations, and extreme stress testing, the framework achieves: fiscal self-sustainability via economies of scale; internalization of wage externalities, ending the wage-profit zero-sum game; and Pareto-compatible self-selection that targets resources precisely without coercion. The system converges bidirectionally—as an implicit safety anchor in high-income equilibrium, or as a wealth-reshaping common-prosperity engine in full participation. A dual-track transition pathway from local sandbox testing to market-spontaneous global substitution ensures low-friction implementation. This research offers a paradigm shift in welfare economics and stabilization theory, providing a logically closed, technologically feasible blueprint for resolving secular stagnation and social trust deficits without undermining free-market pluralism.

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