Centrist Democrats include Baby Bonds in proposed initiative

Wednesday, July 26th, 2006
Categorized as: Savings Bond news

The American Dream Initiative unveiled at the annual meeting of the Democratic Leadership Council on Monday includes a proposal to open Savings Bond accounts for each child at birth. The proposal suggests that the government should deposit $500 in these accounts when they are opened and when a child turns 10. In addition, families with incomes of $75,000 or less would be allowed to deposit the existing annual child tax credit into these accounts.

The Democratic Leadership Council (DLC) is a centrist political group with members like Bill and Hillary Clinton, Iowa Governor Tom Vilsack, and Senator Evan Bayh of Indiana. The group is being challenged by a more liberal wing of Democrats, represented by political bloggers and the Campaign for America’s Future.

That challenge is being played out in the primary election for Senator in Connecticut, where Senator Joseph Lieberman, who is aligned with the centrist DLC, is being challenged by Ned Lamont, who is aligned with the more liberal Democrats.

The entire American Dream Initiative consists of proposals related to increasing the number of college graduates, the amount of retirement savings, the percentage of home ownership, and the opportunity to have health insurance.

Here is the exact wording of the section on Baby Bonds:

Baby Bonds. The chance to get ahead depends in large part on having the assets to take advantage of it. The United States should follow Tony Blair?s lead in Britain by providing a Baby Bond to each of the 4 million children born in America each year. A $500 savings bond at birth and again 10 years later would give young people from low- and middle-income families a stake in upward mobility. We should give families with incomes of $75,000 or less the option of directing their existing annual children?s tax credit into these accounts, tax-free. The money could be used for college and training, a first home, and retirement savings.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

4 Comments

On July 26th, 2006 Charles said:

If I did the math correctly, that’s 2 billion per year. Add in the $500 bonus at age 10, assume the same birth rate and in year 10, we would be cookin’ @ 4 billion per year. Throw in a cost of living adjustment, the interest added on to the national debt, loss of taxes to the treasury and as each 10 year generation gets it’s $500 COLA adjusted bonus, we could tack a few more trillion on the national debt in no time – running up interest rates and making everyone a millionaire.

If that’s a Centrist political plan, I’d hate to see the liberal version :’)

On July 29th, 2006 Tom Adams said:

Comments on the Baby Bond proposal in the media have been cool and include Democrats’ ‘Dream Initiative’ gives me nightmares by Bill Ferguson in the Macon Telegraph and Picnics, Pig Roasts, and New “New Directions”: Dems Gear Up For November by Arianna Huffington on Yahoo News.

On August 2nd, 2006 Steve the K said:

The liberal version is “from everyone according to their ability, to everyone according to their need.” Or words to that effect.

I’m just curious what part of the Constitution says that the Federal government is required to give people “free” money?

Unfortunately, the people who went to government schools and have no concept of basic economics will go for this because the MSM will play it up as “free money” from your friends in the Democratic party. Never mind it will be paid for by everyone, as Charles mentioned above.

On August 23rd, 2006 Tom Adams said:

The Baby Bond proposal has gotten almost no recognition on the web. Here’s a link to one blogger who has commented on Baby Bonds.

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

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