Hillary Clinton: Let’s Start Socialism At The Cradle, Literallyby Doug Mataconis
For all the complaining I do about the Republican Party, there are days like today when I’m reminded of just how bad the alternative is:
WASHINGTON (AP) – Democratic presidential candidate Hillary Rodham Clinton said Friday that every child born in the United States should get a $5,000 “baby bond” from the government to help pay for future costs of college or buying a home. Clinton, her party’s front-runner in the 2008 race, made the suggestion during a forum hosted by the Congressional Black Caucus.
“I like the idea of giving every baby born in America a $5,000 account that will grow over time, so that when that young person turns 18 if they have finished high school they will be able to access it to go to college or maybe they will be able to make that downpayment on their first home,” she said.
The New York senator did not offer any estimate of the total cost of such a program or how she would pay for it. Approximately 4 million babies are born each year in the United States.
Let’s do some math.
4 million babies x $ 5,000 per baby = $ 20,000,000,000 per year.
$ 20,000,000,000 x 3.47%(the current interest rate on Series EE savings bonds) = $ 694,000,000/year interest.
$ 694,000,000 x 18 years = 12,492,000,000
And that’s just one year’s worth of babies.
Where, exactly, is that money going to come from ?
Update: As the comments indicate, these numbers are approximations and don’t factor in things like inflation, the compounding of interest, or the incentives that might be created by a government program that effectively pays people $ 5,000 to have a baby. If anything, reality would probably turn out to be far worse that what I’ve estimated.