Source: EconLog
by Scott Sumner
“The administration has proposed giving newborn babies (whose parents have Social Security numbers) a savings account containing $1000, which must be saved at least until the child reached the age of 18. … So how should we think about this policy? At first glance, it seems sort of like a natalist policy, as the money is going to babies. But the babies don’t actually benefit until reaching the age of 18, at which point that money goes to almost all 18-year olds, regardless of whether or not they later choose to have children. So unless I’m missing something, I don’t see how it encourages fertility.” (06/11/25)