Simple solution to social security, and other American financial issues?
When every American is born, they receive $1,000,000 into a fund yielding 4-5% dividend returns per year (40-50K). This would be around a 4 Trillion dollar a year investment. They spent about 4.4 Trillion in 2019. Question is would it be worth it? This could be an ETF like $VYM or something else. The first million dollars that is earned pays back the government. This can be considered a loan that we are so quick to loan other countries. At this rate, the loan would be paid back by the time the person is 20-25 years old. That person would then have the option to reinvest those dividends or use them for income. They should be either not allowed to take out the initial investment until retirement age or discouraged to. If it is a loan in their name and it is paid, off its kind of theirs. That is when financial education would be a great benefit if taught in school. If we had a pandemic and the country shut down, guess what would still flow without the government printing money? Debt clock will we ever be positive?
The benefits of this would be no need for social security. Please stop taking it out of my check and would be great if you paid it back now instead of right before I am at the age of death. You would be investing in your citizens future at birth, and it would pay off. The government should not have to print money to send out stimulus packages. Any Government assistance programs should be able to be cut off. I would hope it would help the government get their budget under control. It is a loan so the government would get this back on top of taxes from those that work.
The drawbacks would be it will create people that do not want to work and just live off that income. Don’t we have that now though? People that do not want to work and just live off the government programs? It may drive up inflation but so does printing money. The government will need to loan each American 1 million dollars at birth, that will take 20-25 years to be paid back. The population right now is 328 million people. How much money have we been printing on these so-called stimulus packages? This will make more people want to be an American citizen but that is an issue already as well.
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