🧒 Imagine….Baby Bonds as a Means
to Counter Child Poverty🧒
💡Imagined Endstate:
Baby Bonds, a proposed policy for
government-funded savings accounts for children under 18, has the potential to serve
as a strategic method to close the racial wealth gap in the United States.
🔗 Link:
📚Source:
Mitchell, L., & Szapiro, A. (2020,
September). Baby Bonds: A Path to Racial Equity? Morningstar Policy Research. 📊
💥What's the Big Deal:
💰 This policy proposes a program
that could promote economic mobility for lower-income families and reduce child
poverty. This policy proposal analyzes the impact of Baby Bonds on the racial
wealth gap using data from the Panel Survey of Income Dynamics. It reveals that
Baby Bonds could significantly reduce the gap in total wealth by one-fourth and
by two-thirds when excluding home equity. 💼To enhance equity and
efficiency, the authors suggest supplemental payments for older children,
investment options, and integration with college savings plans. 🌟Baby
bond legislation has passed in California, Connecticut, and Washington, D.C.
Another eight states have introduced legislation, including Iowa, New Jersey,
New York, Wisconsin, Washington, Delaware, Nevada, and Massachusetts. The
American Opportunity Accounts Act is a bill that proposes to establish
tax-exempt savings accounts for American children under 18, funded by the
federal government and available for specified purposes.
#BabyBonds, #EconomicMobility, #WealthEquity, #ChildPovertyData, #Inclusion, #GenerationalPoverty, 🌈
No comments:
Post a Comment