Sen. Cory Booker is introducing a bill to give every U.S. child an interest-bearing savings account at birth in an attempt to reverse rising economic inequality.
The bill opens an interest-bearing account administered by the Treasury Department and start with a $1,000 principal balance granted by the federal government for each child born in the U.S. The government would then deposit up to $2,000 a year into each child’s account depending on total family income until the recipient turns 18.
“Everyone in America should have a real shot to succeed, but federal policy over decades and an upside down tax code that heaps benefits on the very rich and big corporations have grown the gap between those who have much and those who have little,” Booker said.
“Today, nearly one in three American families have zero to negative wealth, and it’s hard to get ahead if you begin life behind the starting line.”
A similar federally funded savings program was instituted in Israel last year.
Read more at The Hill.