Could the wealth gap be closed by giving babies $50,000? Some economists think so

Wednesday, January 24, 2018
CBC: Radio-Canada

Some economists are advocating a bold way to counter the ever-growing U.S. wealth gap: curb it at birth.

The proposal, called baby bonds, suggests giving every child born in America a lump-sum payment of up to $50,000; richer families would get less, as low as $500. The money would be managed by a government entity and would have to be spent on "wealth building actions" like going to university, starting a business or buying a home. Darrick Hamilton, an associate professor at The New School in New York and associate director of the Cook Center, is one of the economists behind the proposal. He fleshed out the idea with Cook Center director William Darity. They argue success is tied to family wealth and that the bonds would give even the poorest families a chance.

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