USA To Give Newborns $1000 in an Investment Account

Part of the Big Bloated Budget Bill is to give every newborn American $1000 invested in a diversified US stock fund to be accessible once they turn 18. Ladies and gentlemen, the “MAGA Account” (Money Account for Growth and Advancement).

The good: it allows for $5000 in tax-advantaged contributions every year (I can’t find whether this is a Roth, Traditional, or double tax advantage). It’s an extra buffer that wouldn’t be subject to 529 restraints if the beneficiary doesn’t want further education.

The bad: just about everything else. Even the Keynesian idea of throwing money around to stimulate the economy requires that money to be liquid to create growth. The US now has Social Security for young people and is using the Treasury to inflate the stock market (because Trump seems to base all judgements of success and failure on the stock market’s performance). More debt, more inflation, and an ever-increasing acceleration of both.