Second, if my popularity hypothesis is true, capital flight may become an opportunity to leverage the polity into socialism. Those firms or industries at risk of exit should be scapegoated and specially targeted for nationalization. This brings additional revenue for the growing dividend and serves as appropriate comeuppance for defecting industries. If there exists a popularity effect that serves to grow social expenditures and a profitability effect that acts as a break on that growth, the historical record has shown the former to completely swamp the latter. As popularity runs into capitalist defection the exploitation of new sources of capital income becomes increasingly plausible. This is the mechanism through which the move towards a generous basic income is something akin to the move towards democratic socialism.
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