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Hillary Proposes $5,000 "Baby Bonds" For Newborns

Hillary Clinton yesterday proposed a "Baby Bonds" program, in which the government would give newborns $5,000 in an interest-bearing account that would become available to them at age 18, for the purposes of paying for college, going towards home ownership or other causes. The cost would be roughly $20 billion per year.

ABC News notes that Hillary proposed something similar in 2006, only then it was $500.


21 Comments

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Reminds me of that $300 check I got from Bush, a bribe to go along with his big tax cut for the rich.

Sorry, Hillary, my vote's not for sale.

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What a lousy idea. An embarrassing attempt to buy off the public with a handout.

How about eliminate all corporate tax breaks/writeoffs and keep your crummy five thousand bucks.

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Has she been getting advice from Dick Morris? Or perhaps one of her pollsters is owned by Karl Rove.

Who's idea is this. Fire him/her.

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whose idea.

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I don't know, everyone seems to think this is foolish pandering, but a whole lot of working class Americans don't have anyone to save for them -- or yearly expenses have gotten too high for many people's parents to really try.

Maybe this will further depress individual savings in this country, or maybe it will push tuition inflation even higher but, in an era of obscenely high college debt and record mortgage foreclosures, isn't there something fundamentally sensible about helping people save for either tuition or a down payment in advance?

Why should interest be something that only benefits the rich while burdening the poor?

(And I write this as someone who's very unlikely to vote for Hillary in my state's primary.)

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Why not a Pontiac?

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When we already arguably have issues with over-population, this seems to be a heck of an incentive for people to start procreating like mad, UNLESS there is some sort of a clause which makes it actually impossible for the child's parents to touch the cash.

Even then, Evan makes some valid points. Especially in areas where the real estate market went haywire, it is very hard to save for college, etc.

But I think there are measures that are both more useful, and less politically ham-handed, than this one. Expansion of existing programs, for example.

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Having read the book, "The Stakeholder Society", I have to say that I do like the idea of granting an interest-bearing gift to every baby that would later allow him/her to start adult life with a boost.

One problem with this idea could be that most 18 year olds might just piss it away, not yet having the maturity to think about a nebulous 'future'. But, also, the devil is in the details, just as with sending 15.3% quarterly to IRS, but having the government 'borrow' those funds for years and put the totals in jeopardy for all future recipients.

When my last child was born, I started a college savings fund through a reputable insurance company [the famous one built on a 'rock']........but it turned out that the terms were just a sales scam of sorts, resulting in one of those class action suits. Though the class action attorneys made millions, we class members really lost out. By the time our household got a settlement, it barely equaled the total of what I had sent in every month for some twelve years. So, the 'college fund' was really worse than nothing because the truth about the fund's non-growth came awfully late to be able to try to scramble otherwise to save for that one's college. [fortunately, he was accepted at a fine university with a 'needs-blind' policy].

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Hillary the Hypocrite, Pander in Chief. And before the "Clinton Hater" charges start flying, I want to quote from Frank Rich's penetrating analysis of Hillary's campaign in the NYT 09-30-07. He is far from being a Hillary Hater, gives her credit where it is due, but calls it like it is:

"So far her post-first-lady record suggests a follower rather than a leader. She still can't offer a credible explanation of why she gave President Bush the authority to go to war in Iraq (or why she voted against the Levin amendment that would have put on some diplomatic brakes). That's because her votes had more to do with hedging her political bets than with principle. Nor has she explained why it took her two years of the war going south to start speaking up against it. She was similarly tardy with her new health care plan, waiting to see what heat Mr. Edwards and Senator Obama took with theirs. She has lagged behind the Democratic curve on issues ranging from the profound (calling for an unequivocal ban on torture) to the trivial (formulating a response to the MoveOn.org Petraeus ad)."

And Frank Rich continues:
"…Now Mrs. Clinton is erupting in a laugh with all the spontaneity of an alarm clock buzzer… [t]he Clinton campaign's method for heeding the perennial complaints that its candidate comes across as too calculating and controlled."

All too too funny, and oh so TRUE!

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Also in todays NYT (Sept. 30), Maureen Dowd speaks some truth about Hillary and the growing discomfort with the Bush-Clinton political dysnasty. She notes that last week Tim Russert asked Hillary about the dynastic concerns, and Dowd notes, "Hillary replied: 'I’m running on my own. I’m going to the people on my own.'" But, Dowd continues, "Of course, Hillary is never on her own. From the beginning, her campaign has relied on her husband’s donors, network, strategies and strong-arming. GQ killed a 7,000-word article about infighting in Hillaryland after Bill Clinton’s aide told the magazine that running the piece might imperil access to Bill. The incident, as Howie Kurtz wrote in The Washington Post, reflected pressure tactics that 'may be practiced with unprecedented aggressiveness by the tightly controlled Clinton media operation.' On Friday, Bill gave an interview to Al Hunt dissing Obama’s experience level — a brazen assist to his wife."

Finally some of what thinking Democrats and idependents are saying to each other is making it into print. People are very uncomfortable with the idea of Hillary Bush-Clinton-Bush-Clinton being president. And they should be.

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When are we going to hear from Howie Kurtz about Elizabeth Edwards and Michelle Obama giving 'brazen' political assistance to their spouses?

In this day and age you rarely get to this level of politics unless you are part of a team.

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Jane, Elizabeth Edwards and Michelle Obama are not former Presidents of the United States. Former Presidents do not typically take sides in Democratic presidential primaries. Bill Clinton has every right to campaign for Hillary on her merits, if he wishes to do that. When he starts criticizing/"attacking" other Democratic candidates because Hillary can't make her own case, he has crossed a line.

There are advantages and disadvantages for having Bill as her spouse. After months of touting the advantages, we're beginning to see the disadvantages. And everytime he speaks with presidential authority on his wife's behalf, people uncomforatble with neopotism and presidential dynasties remember he is campaiing for Hillary Bush-Clinton-Bush-Clinton.

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I'm really surprised at some of these responses. Frankly, I think this idea -- a $5000 grant to every newborn -- is brilliant.

It's been put forward before, so it's not original. And it's quite simple. But it's a great investment in the future generation.

$5000 in an interest-bearing account tax-deferred account -- like a Roth or 529 (college savings) IRA -- with reasonable restrictions around how it can be spent when it matures (i.e., for the child's educational expenses or as a down-payment on the child's home) -- could help pave the way for so many middle and working class kids to get an education and a home. And at $20 billion per year, it's a bargain compared to ... oh, I don't know... the Iraq war at hundreds of billions per year.

Whether you consider the idea pandering or political, I'd encourage you to at least consider the idea on the merits. This simple investment is the type that every parent ought to put into their child -- 18 years of growth on a modest investment would yield a fantastic nest egg for most any child. Unfortunately, most people can't afford it. Many of those who could afford it don't understand the implications of starting a savings plan at such an early stage of their child's life.

Bottom line - I think this would be an excellent use of the federal budget, far exceeding in positive return on investment -- positive impact on both the individual children recipients and on the society as a whole -- than many other uses. Bravo to any candidate who puts forth this idea.

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party-of-one wrote: ...he has crossed a line.

what...the freedom of speech line?

if he stays in politics, i suppose after another 20 years obama will have some historical baggage, too, in addition to valuable experience. perhaps he'll have the ability to speak in whole sentences where every 5th word isn't "....uhhhhhh." at least that's what i hear when he replies to a question. it makes me wonder: does he not know or is he stalling for time?

as far as listening to frank rich [c'mon, for years he gave imus a pass -- lame or calculated?] or maureen dowd, or elizabeth, michelle OR bill, try just listening to hillary clinton and NOT what other people have to say about her. you might be surprised. and don't you like the natural sound of a woman laughing when it's appropriate? who are the misogynists calling it a cackle?

we're still in the primaries, and this administration is about to militarily plunge the entire country over another cliff. i'm happier when all the candidates focus on criticizing cheneybush rather than attacking each other. how effective and knowledgeable that opposition to this administration should reveal which of the primary candidates should rise to the top.

so youse guys have your freedom of speech too -- have at it if you must. but this discipline people whine about hillary's "camp" having could serve you as well -- to speak & write about what you know, not what somebody else tells you is so.

imo, today's frank rich was his lamest column in a long time. and dowd playing grownup in her mommy's shoes? give me a break, she's still an adolescent when it comes to knowing about what helps the lives of real people.

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whaleshaman,

Say what you will. Frank Rich and Maureen Dowd are keen analysts and truth speakers with big followings. And they both gave it to Hillary between the eyes. I bet she "cackled" with her machine gun laugh for an hour.

No one is trying to restrict Bill Clinton's freedom of speech, or his libido. He can say whatever he wants and do whatever is allowed under the law and in his "agreement" with Hillary. (He my have trouble with both of those restrictions) In my opinion, the line he has crossed (in criticizing Obama rather than just advocating for Hillary), is that he has become a shameless campaign operative. It's ok to do that. His choice. No law against it. But for many, Bill now forfeits his voice as a senior statesman. Now every word Bill speaks should be understood as an effort to spin for Hillary. And every network appearence on any topic (Meet the Press,9-30-07, for example), should be calculated with a demand for equal time from the other campaigns.

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Doug said: "Whether you consider the idea pandering or political, I'd encourage you to at least consider the idea on the merits."

Part of considering the idea on its merits would be considering how much it would cost and how it would be paid for.

If Hillary's idea means the nation has to borrow $5,000 per baby every year, and pay more in deficit interest than the bond would earn, it would not be a very good idea, irrespective of its social merits -- not for the nation or for the babies who will grow up to be taxpayers burdened by an exploding deficit.

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According to the U.S. Constitution, any child born in this country is automatically a U.S. citizen. Doesn't this this extend even to children of those who are here illegally? If so, then every child born, even of illegal immigrants, is going to get a $5,000 bond.

Lou Dobbs will have a fit.

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Don't we already have programs to help pay for higher education and to assist first-time home buyers? Why not simply expand those programs? That would benefit people immediately rather than 20 years down the road.

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"Reminds me of that $300 check I got from Bush, a bribe to go along with his big tax cut for the rich."

-- Several points here: 1) I don't remember Bush promising that $300 check until AFTER the election -- after the inauguration I believe; he made a generic promise to "cut taxes" during the campaign. 2) He did not ONLY cut taxes for the rich; if you were in the same middle-class tax bracket in both 2000 and 2004, in which year did you pay a higher tax percentage? 3) While I agree that those $300 checks constituted a de facto bribe, in that case we were being bribed with our own money (everybody paid at least $300 too much in taxes during the 90's); $20 billion per year (equal to the entire budgets of the Interior Dept, Commerce Dept, and the Legislative Branch of Gov't COMBINED!) isn't going to come from the ether, it's going to come from us in the form of higher taxes.

Today, Bill Clinton (in calling it a mistake for the top 4 GOP candidates to skip the debate last week) said this on Meet The Press: "As African-Americans become more and more prosperous, you have to believe that more of them are at least open to the idea of voting Republican."

-- Why is that, Bill? Is it because prosperous people tend to be politically conservative? Or, is it because they come to realize that the welfare state helps perpetuate a cycle of poverty?

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dhs wrote: "According to the U.S. Constitution, any child born in this country is automatically a U.S. citizen. Doesn't this this extend even to children of those who are here illegally? If so, then every child born, even of illegal immigrants, is going to get a $5,000 bond."

-- This is true. Presumably every child will be issued a social security number at birth (for tracking purposes); and, since the money won't be released until the child turns 18, the involvement of the parents will be minimal. There isn't necessarily anything wrong with this ... IF you think Hillbillary's (or is that "HillBillary's") plan is a good idea.

It's a TERRIBLE idea.

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Quotoe of 2007

[Brunehilde’s] never going to get out of our faces. ... She’s like some hellish housewife who has seen something that she really, really wants and won’t stop nagging you about it until finally you say, fine, take it, be the damn president, just leave me alone.


Maureen Dowd quoting
TNR literary editor Leon Wieseltier

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