Posted on 09/29/2007 7:49:24 AM PDT by jdm
Fresh off of pushing for an expansion of S-CHIP into the middle class and adding tens of billions of dollars on insurance subsidies, Hillary Clinton decided to create another entitlement program for her cradle-to-grave nanny state vision. In her address to the Congressional Black Caucus, Hillary said she'd like to spend $20 billion each year on checks to newborn infants:
Democratic presidential candidate Hillary Rodham Clinton said Friday that every child born in the United States should get a $5,000 "baby bond" from the government to help pay for future costs of college or buying a home.
Clinton, her party's front-runner in the 2008 race, made the suggestion during a forum hosted by the Congressional Black Caucus.
"I like the idea of giving every baby born in America a $5,000 account that will grow over time, so that when that young person turns 18 if they have finished high school they will be able to access it to go to college or maybe they will be able to make that downpayment on their first home," she said.
The New York senator did not offer any estimate of the total cost of such a program or how she would pay for it. Approximately 4 million babies are born each year in the United States.
The US has had over 4 million births per year since 2000. The calculation is easy. In 2004, with 4,121,000 births, that would mean $20,605,000,000 dollars ... for just one year.
Where does Hillary plan to get that money? It's easy to talk about writing checks, but the federal budget already runs in the red, especially on entitlements. If we talk about spending even more money that we don't have, why stop at $5,000? John McCain wondered aloud in his blogger conference call whether $100,000 wouldn't sound more compassionate, as long as we didn't talk about how we plan to pay for the program.
This represents pandering politics at its worst. Want to get votes for an election? Promise to buy people off with free money! It takes the worst instincts of Norman Hsu to suggest yet another entitlement Ponzi scheme to get elected to office. The company Hillary keeps has started to rub off on her. Read Philip Klein for more.
UPDATE & BUMP, 3:40 PM: Teresa in the comments claims that Clinton's remarks were taken out of context. "Clinton was responding to a program suggested by Time Magazine in which the gov't would set up this program, but kids could only withdraw the money IF they served in the military or some other national service organization first."
Unfortunately, to take advantage of the 18 years of compounded interest Hillary thinks will pay for a college education or a new home, the government has to buy the bonds at birth -- which means the money gets outlaid right from the start, and we're paying $20 billion a year for this entitlement. Either that, or the government has to calculate the compounded interest for 18 years at the point of that decision and write a check -- which makes this an unfunded mandate, a liability that won't even get accounting until the lump sums start getting paid. Either way, it's an irresponsible fiscal disaster.
This is How the Democrats get Votes...They make “Pie In The Sky” promises, then when they are in Power...fail to produce, and Blame the republicans for “Blocking” legislation that give out these freebies.
This is How the Democrats get Votes...They make “Pie In The Sky” promises, then when they are in Power...fail to produce, and Blame the republicans for “Blocking” legislation that give out these freebies.
Actually, I heard someone speculate that the increase taxes to finance this will probably go to the general fund. This will end up like Social Security. When these new borns hit 18, there will be no money there.
sure, AND while we’re paying for all the babies they HAVE, we can also pay for all the babies they DON’T have via abortion!
VOTE HILLARY!
And who gives birth to these children...the gov't?
“She argued that wealthy people “get to have all kinds of tax incentives to save, but most people can’t afford to do that.”
“but most people can’t afford to do that”.....That is just a lie. Most people who don’t save money are WORKING people. They live above their means. Want and get more than they can afford. The bigger than needed home, newest cars, electronic gizmos etc.
But I wouldn’t write this idea off too soon.
Lets look at it closely. First, it sounds like the older idea to allow each worker to invest some of their own SS funds into a PRIVATE ACCOUNT for future use. This plan would allow an immediate ‘nest egg’ for use after say 40 years old. I don’t know, pick an age.
We are talking about $20,000,000,000 a year going into some type of PRIVATE SECTOR financial institutions. What if ALL financial institutions were willing and allowed by the government to take in this $5000 per child FREE OF CHARGE. No fees to the owner of the account. The banks sure should be able to protect the principal and make a small profit off of that kind of money.
$20,000,000,000 is less than 3/4 of 1 % of what the Federal government will spend this year.
Using the ‘rule of 72’, $5000 will double in 14 1/2 years at 5% return. With a 30 year investment, that $5000 will become $20,000. If parents want to add to it to some limit good.
If all financial institutions competed for all those dollars, we may get some good rates. Those deposits could be lent as home mortgages.
Lets not write this idea off too fast.
Lets hear from some financial experts here.
Wow.....another "lockbox" that would never, ever, ever be pillaged by a money-crazed Congress.
$2500 for a partial birth abortion?
So why do you need a government program to take your money (and it has to come from somewhere, either taxes or borrowing), invest it in a bank, and then give it to your kid in 18 years?
You don't.
Yep. That is the year of my birth. You bet. Will take no checks from her; strickly cash. LOL
Its nice to know the economy is so good and the Govrnment has so much money that we can offer this . I suppose Hillary will renig once she is elected giving the excuse that I tried to give every child 5 grand and I never worked so hard but there is just not enough money.
I am not opposed to giving babies or anyone 5 grand as long as if at the end of the year my tax bill is 3 grand I can buy the bond with MY money and deduct it from my income taxes or buy one and deduct it from my social security payment.
Of course that wont work because Hillary cant demonize some group or she cant dip into someones pocket and use their money instead of her own.
Besides ,when she can show me in the Constitution where it says it is the job of the President to give away our money to someone else she can do it
Its nice to know the economy is so good and the Govrnment has so much money that we can offer this . I suppose Hillary will renig once she is elected giving the excuse that I tried to give every child 5 grand and I never worked so hard but there is just not enough money.
I am not opposed to giving babies or anyone 5 grand as long as if at the end of the year my tax bill is 3 grand I can buy the bond with MY money and deduct it from my income taxes or buy one and deduct it from my social security payment.
Of course that wont work because Hillary cant demonize some group or she cant dip into someones pocket and use their money instead of her own.
Besides ,when she can show me in the Constitution where it says it is the job of the President to give away our money to someone else she can do it
How can the witch be in favor of this when she is not for privatization of social security.
The liberals always complain that people will lose all the money in the stock market. Well Hillary lets privatize social security and all put our money in bonds !!! It will do better than your precious government has done for the past 50 years
Yeah they did make it retroactive to 1947 ,its called social security
“What if this $5,000 bounty on every newborn provides the incentive to reduce abortions?”
No it’s not.
It’s called, “buying votes.”
I remember that too. IIRC, the amount was $500.
What the hell is 5,000 going to do in 18 years. Especially if it’s under government control! She is such a fraud.
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