Hillary Wants $5,000 for Every U.S. Baby
Posted By: Dr. Frugal in Taxes on 09/29/2007 at 06:54:34
I really, really try hard to stay out of politics on here because I'm acutely aware of the fact that there are two things you should never discuss with strangers--politics or religion. They're topics that people feel so strongly about that there's no sense trying to have a debate about them because everyone is set in their ways. I don't mean that as an insult; I'm the same way. However, I'd like to take a peek at Hillary Clinton's plan to set aside $5,000 for each newborn in the United States today.
This idea was proposed by Time Magazine and is based on something the British already do. This plan is supposed to help counter the fact that every baby born in the United States inherits $27,000 worth of national debt. It's been bandied about that giving them essentially a trust of $5,000 would offset it. Now, I don't have a degree in economics but wouldn't adding $5,000 for each newborn just increase the national debt· By $5,000*Int%*18· I think you have to factor interest in there because if the money were being spent simply to offset the initial debt then you would be working against a lower interest rate.
I don't get it. Maybe someone can explain this to me, but I have two kids and am more than capable of saving for them. Parents who are NOT saving for them, I have a sneaking suspicion, would find some way to capitalize on this anyway.
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