‘Baby Bonds’ Could Remedy the Racial Wealth Gap

Angelo Young SAVE THIS

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Not since the early 20th century has the country’s economy been so strategically engineered to move wealth, opportunity, and prosperity away from lower-income families and toward the wealthier few.

Whether it’s deducting some of the cost of buying first and second mansions, paying lower taxes on passive income and other capital gains, or having the resources to hire wealth managers to exploit complicated loopholes, wealthier Americans have myriad ways to keep, preserve, grow, and pass on their riches in ways unavailable to the 40 percent of adults in this country unable to pay an unexpected $400 bill.

One proposal for closing the pernicious wealth gap between rich and poor (and between whites and everyone else) are so-called “baby bonds.” More accurately described as child trust funds, the idea is simple: set up publicly funded, interest-accruing accounts for newborns that could be used when children become young adults, exclusively…

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