Cory Booker's 'baby bonds' giving $1,000 per newborn could get a new life in a Democratic Congress

[Wicked Blue]

NJ.com
By Jonathan D. Salant | NJ Advance Media for NJ.com

U.S. Sen. Cory Booker on Thursday proposed legislation that he prominently featured in his unsuccessful presidential campaign: A $1,000 savings account for every newborn American.

Known as “baby bonds,” the government would add up to $2,000 every year depending on income. Recipients could begin withdrawing money from their accounts at age 18, giving them a nest egg to tap to spend on things like a college education, a downpayment on a home, or start a small business.

The funds would sit in a U.S. government account paying around 3% interest, and Booker, a Democrat, said the money would help narrow the economic gap between rich and poor. During the presidential campaign, he said his proposal could give children as much as $50,000 in the bank by the time they finished high school.

“In a country as wealthy as ours, every person should have access to economic opportunity and the chance to build assets and create wealth,” Booker said.

https://www.nj.com/politics/2021/02/cory-bookers-baby-bonds-giving-1000-per-newborn-could-get-a-new-life-in-a-democratic-congress.html

[Wounded Bear]

1. Cute idea...probably helps banks more than people...

[sweetloukillbot]

2. I bet it helps people more than giving them nothing...

[frazzled]

3. I think it's a great idea

Especially for the lowest economic groups: imagine if a kid growing up in relative poverty saw a future ahead, with college or a legitimate business (other than drug dealing) to look forward to, with a bank account of $50,000 to start out in life. This could do untold good for income inequality. It's a path to success for kids who otherwise don't see a future for themselves. Helping people to help themselves is a good idea.

[mainer]

4. They had a form of this in the UK

It was called the "Child trust fund" and it accumulated as the child grew. Alas, it seems to have been abolished.

https://en.wikipedia.org/wiki/Child_trust_fund

[sanatanadharma]

5. A good idea, kind of like a Grandparents' or Aunt-fa's welcome to the world gift

This would be like, "We of the USA welcome you, the new 'usar' into our family and wish great success so that you too will pass on the gift of your taxes to newly born 'usars' in Texas and California, and ...(up to the 52nd State of D.C.)"