ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Friday, September 28, 2007

Buying Her Way into the White House?

Is she simply trying to buy her way into the White House?

Clinton: $5,000 for Every U.S. Baby
Sep 28 01:16 PM US/Eastern
By DEVLIN BARRETT, Associated Press Writer

WASHINGTON (AP) - Democratic presidential candidate Hillary Rodham Clinton said Friday that every child born in the United States should get a $5,000 "baby bond" from the government to help pay for future costs of college or buying a home.

Clinton, her party's front-runner in the 2008 race, made the suggestion during a forum hosted by the Congressional Black Caucus.

"I like the idea of giving every baby born in America a $5,000 account that will grow over time, so that when that young person turns 18 if they have finished high school they will be able to access it to go to college or maybe they will be able to make that downpayment on their first home," she said.

The New York senator did not offer any estimate of the total cost of such a program or how she would pay for it. Approximately 4 million babies are born each year in the United States.

Clinton said such an account program would help Americans get back to the tradition of savings that she remembers as a child, and has become harder to accomplish in the face of rising college and housing costs.

She argued that wealthy people "get to have all kinds of tax incentives to save, but most people can't afford to do that."

The proposal was met with enthusiastic applause at an event aimed to encourage young people to excel and engage in politics.

"I think it's a wonderful idea," said Rep. Stephanie Stubbs Jones, an Ohio Democrat who attended the event and has already endorsed Clinton. "Every child born in the United States today owes $27,000 on the national debt, why not let them come get $5,000 to grow until their 18?"

Britain launched a similar program in January 2005, handing out vouchers worth hundreds of dollars each to parents with children born after Sept. 1, 2002.

Earlier this month, Time magazine proposed a $5,000 baby bond program.

Of course, I'm sure there will be plenty of strings attached. For example, I doubt that Clinton would allow that $5k to be spent oh..... let's see... on school choice for parents.

Would she allow the money to be invested, so it could grow into a significantly larger amount? She says that she wants to encourage savings, but I doubt she's thinking of allowing people to "gamble" their money in the stock market. How about putting that money into a Healthcare Savings Account for every child?

And, of course, you can tell by the way that these questions are asked that the $5k won't be free - because we'll have to make sure that Hillary!TM approves of whatever we do with the money.

And, also notably absent from Hillary's response was the potential costs of such a program. There 3.89 million births each year, meaning that such a program would "only" cost $19.5 billion per year, and that doesn't account for the likely increase in births due to the $5k handout.

Your Co-Conspirator,
ARC: St Wendeler

Comments (3)
Anonymous said...
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Anonymous said...

I don't understand. If the government were to set aside $5000 for each child in an account intended to grow until the child is 18 -- which is what I believe has been suggested -- why would Hillary or anyone else support spending the money before the account matures on "school choice for parents"? Even if you happen to like "school choice," that suggestion makes no sense.

I dare you to substantiate any of your comments on this "baby bond" concept. (Personally, I think the idea's silly, albeit probably not as silly as "school choice for parents," but presidential contenders say a lot of silly things.)

St Wendeler said...

SC - The baby bond proposal doesn't say that it can only be used for college. She threw it out there saying it could be for anything.

I'm just pointing out the fact that the bonds will in fact have plenty of strings attached and Hillary! surely wouldn't allow the money to be used for certain kinds of expenses - such as those she does not approve of.

Also, it's unlikely that the recipients of the $5k would be able to invest it in a way that would give them a higher return than a few % points over the 18 years.

HRC claims that she's trying to instill the virtue of saving in everyone.... if that truly was the reason for the proposal, she would allow people to add to the initial $5k, manage and direct their investments, and heck - perhaps make the contributions to such an account tax free with no penalty upon withdrawal when the child hits 18.