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https://scottsantens.substack.com/p/the-1000-lie-why-trump-accounts-are-wrong-end-child-poverty-now>
"In December 2025, something ostensibly remarkable happened. Michael and Susan
Dell pledged $6.25 billion to fund new “Trump Accounts” for American children.
Ray and Barbara Dalio followed with $75 million for Connecticut kids. BlackRock
and BNY announced they would match government contributions for their
employees’ children. Headlines celebrated the generosity. Treasury Secretary
Scott Bessent launched a “50-state challenge” calling on billionaires in every
state to follow suit.
The idea may sound wonderful: give every baby born between 2025 and 2028 a
$1,000 investment account that compounds over 18 years at which point it
converts to a traditional IRA account, potentially growing into a nest egg of
at least around $700,000 for retirement, or to help with college, buying a
home, or some other approved reason to withdraw money without a 10% early
withdrawal penalty. Who could oppose giving kids a financial head start as
young adults?
I oppose it. At least as an alternative to what we
should be doing. Not
because giving kids money is bad — it’s not. But because this is the equivalent
of offering a starving child a coupon for a meal they can redeem in 18 years.
It’s offering a drowning person swimming lessons that begin after they’ve
already drowned. It’s a cruel joke dressed up as generosity, and the science is
overwhelmingly clear about why."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
