The $60 billion plan to give every American baby $1,000 at birth

CNBC ^ | WED, JUN 23 20218:00 AM EDT | Andrea Miller, CNBC.com associate producer

[The_Media_never_lie]

“Baby bonds” have become one proposal to help close the racial wealth gap between Black and white families in the United States. Unlike regular bonds, they’re not a debt instrument traded in the public markets. Instead, the policy proposal creates a federally funded trust fund account for every newborn baby in the U.S.

[KarlInOhio]

Here's the fiscal funny business part. In addition to the initial $1000 at birth, there is an additional yearly payment depending on income. The video showed

Income. Annual payment. Total at 18
Up to $25,100        2,000.       46,215
31,375.       1,500.        35,081
43,925.        1,000.        23,948
56,475.        500.        12,185
81,575.        250.        7,248
125,751.        0.        1,681

The interest rate is about 2.9%.

Now combine this baby bond with the $67,600 debt the child is born with.

[DannyTN]

This actually could be a good idea. My parents gave each of my kids $1000 when they were born. My daughter's was invested in Exxon and is worth $8000. My son's was put into a mutual fund and is worth $4000. They both went to undergrad on full tuition scholarships. So neither has touched theirs. My daughter's is in just a plain stock account. My son's is in an education account where he will get penalized if it's not used for education.

3.5 million babies were born in the US last year. So $60 billion must be looking out for 10 years. As it would be 3.5 billion plus admin costs per year.

Either they are expecting a baby boom or some expensive bundlers will be administering this thing.

Questions:

1. Are they going to put this into an investment account of some form? Or treasuries?
2. And who gets to decide the investment policy if not treasuries? Index funds?
3. Do they have to do anything to get it?
4. Will they get a lump sum or distributions?
5. Can they not take a distribution and let it grow.

Suggestions

• Let's say they have to finish High School to get it. That could be a real incentive from an early age for them to try harder and to stay out of trouble.
• Allow them to begin accessing after they graduate high school, if they use the money for higher education including trade schools. Keep it reserved until 22 if not.

It won't eliminate a wealth gap. It might actually increase one between US citizens and immigrants legal and non-legal who were not born here.

But it could help educate our youth on the value of investing and letting it grow.

[DannyTN]

I didn’t see the annual payment.

I think the annual payment should be lower or non existent. And the 2.9% does imply they are investing in treasuries.

[Kickass Conservative]

If the Baby’s Parents want to out $1,000 into an account for the kid, good for them. It ain’t my Kid, so it shouldn’t be my Tax Dollars funding it.

[Rebelbase]

$1000 throws one hell of a party for the parents.

[alexander_busek]

“Baby bonds” have become one proposal to help close the racial wealth gap between Black and white families in the United States.

I don't understand why the proposed measure should be limited only to "families in the U.S."

That's so xenophobic!

Regards,

[dennisw]

Right you are. This is about Dems trying to swamp white voters by handing out cash bonuses for babies and for raising children. Sure, some whites will benefit from these IRS and other Federale programs.

But the lion’s share of these $$$ handouts will go to our third world immigrants and the non-whites living here. This will ramp up baby daddy action/pregnancies in our “ghettos”

[Mark17]

I really didn't think things would continue to keep getting crazier, but this article is proof indeed they are.

I don’t think there is a lower limit, on how far the rats won’t sink to.

[dinodino]

I can’t find where in the Constitution your plan is authorized. Could you please direct me to the relevant text?

[2aProtectsTheRest]

I suppose you could authorize it under Article I Section 8 and call it payment under letters of marque. Seems like a bit of a stretch to me, but...

(in case it’s unclear, I’m kidding)

[SaveFerris]

[Race Race Race Race Race Race Race Race]

A constant drumbeat of division and strife.

Satan knows exactly how to destroy the nations of the world.

Get the people in every nation to fight against each other, driven on by constant manufactured division and manufactured strife.

[SaveFerris]

[$100 million?]

Well, at least they’ll be able to buy a loaf of bread when they turn 18.

Because it will probably be around that price.

Zimbabwe, here we come.

[SaveFerris]

[direct deposit banks to withhold $5 a month from AFDC recipients and put that into a fund? Over two years, that’s more than $1,000.]

I’m guessing you meant $50 a month. Plan works for me.

[SaveFerris]

[ It ain’t my Kid, so it shouldn’t be my Tax Dollars funding it. ]

Hey now. Stop making sense.

[ronnie raygun]

So single mothers will never close their legs

[Hojczyk]

It is not a bad idea...you get rid of Social security taxes...and it cannot be touched until retirement...invested in stock market..one third DJ....NADSQ...and international...it is in your name and you can add to it..might need mote than gran to make it work..

[Chewbarkah]

Shhhh! That’s for next year.

[Vaduz]

To help close the racial wealth gap between Black and white families.
If you want something earn it no body like panhandlers.

[CDB]

Shhhh! That’s for next year.

Love it! Happy Fourth!

[The_Media_never_lie]

$1000 throws one hell of a party for the parents.

---

Yes, it will be gone in a flash. And what's more, the bill for the $1000 will be sent to the baby in the form of more national debt! I cannot believe how stupid journalists are, and that is the only explanation for this idiotic idea! They never had to study in college, because J school was so easy, and they never learned anything! They deserve $1000 from every J school professor in the form of reparations for not educating them!