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CONLEY COMMENTARY (WSAU) – Some people will shun the new Trump accounts because they have Donald Trump’s name on them. They are actually a very good idea, and they can still be refined into something even better.
Donald Trump proposes that every child born in the United States gets a Trump Account in their name. The federal government deposits $1,000. And there it sits. The child may access the money when they reach 18. Conservatively invested at 5%, the account would grow to $2,400 when they reach adulthood. That’s not a fortune, but it is a small start in life – perhaps the downpayment for a car or the deposit on an apartment.
And additional monies could be put into the account by parents or loved ones. I’d like to see a federal program where half of a family’s child tax credit goes into the Trump account. Visa even proposes allowing you to direct your credit card rewards each month into the accounts.
And Trump Accounts could be incentivized to encourage other positive behaviors. Suppose the federal government makes an additional $1,000 deposit if a young person completes high school instead of dropping out, r if a young person enters the military.
Many young people complain that it’s hard to get their lives going… for them to get on their feet. A Trump account isn’t a cure-all for that complaint, but it is a small, positive step. Yet I am also sure that there are some young people who will squander their money. They’ll treat themselves to a self-indulgent vacation in Vegas for their 18th birthday. So what? There are always people who will make bad choices.
But for many, they’ll enter adulthood with a modest financial foothold. Forget about who the accounts are named after. Tell me how that’s not a good thing.
Chris Conley
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