Some economists want the US government to put up to $50,000 in 'Baby Bond' bank accounts

Thursday, January 11, 2018
Business Insider

Darrick Hamilton and William Darity have a thought-provoking way to help families pay for college: Give every baby between $500 and $50,000 at the time they are born. Hamilton and Darity, both economists, say these "Baby Bond" accounts could go a long way toward reducing inequality in the US, where a raft of research has found academic achievement is directly tied to familial wealth. "The key ingredient of how successful you will be in America is how wealthy your family is," Hamilton, an economist at the New School, told Heather Long of the Washington Post. The solution Hamilton and Darity presented at the recent American Economic Association conference was a federal government program that deposits between $500 for ultra-rich families, and $50,000 for extremely poor families, in an account they can't touch until the child turns 18. Hamilton and Darity expect the average amount to fall somewhere around $20,000.

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