Should the U.S. give every baby $1,000 at birth?

CNBC published this video item, entitled “Should the U.S. give every baby $1,000 at birth?” – below is their description.

“Baby bonds” have become one proposal to help close the racial wealth gap between Black and white families in the United States. Unlike regular bonds, they’re not a debt instrument traded in the public markets. Instead, the policy proposal creates a federally funded trust fund account for every newborn baby in the U.S. “I support this idea called baby bonds,” Sen. Cory Booker, D-N.J., told CNBC. Booker has proposed a baby bonds policy called the American Opportunity Accounts Act, which has been co-signed by many of his Democrat colleagues.

When the child turns 18, depending on their families’ income, they could have nearly $50,000 in this account. If the child comes from a well-off family, they’d end up with just over $1,600 by age 18 since they wouldn’t be getting annual payments. Watch the video above to learn more about how baby bonds could work, the economics behind the proposal, and what may be next for these policies on the federal and state levels.

CNBC YouTube Channel

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In This Story: United States

The United States is a country also known as the United States of America, USA, US or just America. There are fifty states in the union, which is a federal republic ruled by a representative democracy. Nearly ten million square kilometres are inhabited by over 300 million people. The majority of Americans speak English.

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