How to Save Our Kids From Poverty in Old Age

Source: Phillip Longman, Washington Monthly, Vol 44 nos. 7-8, July/August 2012

The case for American Stakeholder Accounts….What if we re-crafted our wealth accumulation policies so that they primarily helped average Americans build assets? Nothing could be more American. It’s what the Homestead Act did. It’s what the GI Bill did. And here’s another example of how it could be done for the next generation of Americans.

Every child born in the U.S. gets a Social Security number. Going forward, every child should get at the same time what could be called an American Stakeholder Account. Parents, grandparents, and anyone else who cared to could contribute funds to a child’s stakeholder account, as could children themselves. Children whose families qualify for the federal child tax credit would have up to $500 added to their accounts each year by the government. Contributions from all sources would be capped at $2,000 per year….

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