Hillary Clinton suggests $5,000 savings bond for every U.S. baby
WASHINGTON - Democratic presidential hopeful 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.
"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 down payment on their first home," she said.
"I think it's a wonderful idea," said Representative Stephanie Tubbs Jones, an Ohio Democrat who attended the event and has already endorsed Clinton. "Every child born in the United States today owes $27,000 on the national debt, why not let them come get $5,000 to grow until their 18?"
Where to start, where to start... Let's start with where is the US Government going to get the money to pay for this, this gift from the government. Last I heard the government does not have some great paying job that overflows those government coffers. Let's see... 4 million kids born in the country each year, @ $5,000 per kid... that would be 4 times 5 which is 20 now add some zeros and some more zeros, keep adding zeros, just a few more and there you go, 20 BILLION dollars... PER YEAR! Where oh where might I ask is that 20 billion a year coming from? Go look in a mirror to find that answer.
NEXT... every child born in the United States. Every child? every child born in the United States. Just wondering because not every child that is born in the United States should legally have been born in the United States. We might want to skip this one, keep the red meat down to a minimum.
NEXT... let's look at the brilliance of giving someone $5,000 when they are born to make that down payment on a house later in life. I do not know about you but where I live, the average house is about $500,000. The average house. So $5,000 is roughly 1% of $500,000, give or take nothing. You may want to spend part of that $5,000 on one of those late night no money down real estate infomercials because it gets worse. Since I purchased my house in 1993, the housing market where I live has appreciated by about 10% a year. Best I can tell, savings bonds earn about 4% a year. So if you figure someone born today buys a house 30 years from now, if housing prices go up 10% and savings bond prices go up 4%, you are actually losing money by holding the bonds. The bonds are worth less and less relative to the value of the average house each year you hold the bonds. For example, take that average $500,000 house where I live. A year from now it will be worth about $550,000, a 10% increase. The $5,000 savings bond, $5,200, a 4% increase. So a year from now, instead of the savings bond being worth 1% of the price of the house, it is now worth less than 1%, .945%. And the year after that it is worth .89% and 30 years from now it is worth .185%. So using that same bond, 30 years from now, would be just like making a down payment of $929 on a $500,000 house.
NEXT... Those $5,000 bonds. They do not print themselves and deliver themselves and administer themselves. Toss on top of all of this the cost to administer the program, millions of dollars per year.
NEXT... Every child born in the United States today owes $27,000 on the national debt, why not let them come get $5,000 to grow until their 18?" That comment, from Representative Stephanie Tubbs Jones, an Ohio Democrat, borders on the insane. Hey, why not give each kid an additional $27,000 on top of the 5K when they are born and then they will not owe anything. Problem solved.
The scariest thing about this absurd idea... that the Kossacks seem to have more hard questions for Hillary! than the MSM... scary, not surprising.