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Opinion

KidSave for tomorrow's youth

Lynn Meyer

Consider being born in America tomorrow, into a country indebted trillions and trillions of dollars, responsible for the welfare of nations half way across the globe, hated by nations with nuclear weapons and in a frenzy of exponential electronic development. Will we be able to explain what stability or security means to them in a world full of the opposite?

Maybe. A recent editorial in the New York Times by David Brooks resurrected a proposal by retired Democratic Sen. Bob Kerrey called KidSave. This bi-partisan bill had planned to use the Social Security surplus to set up tax-deferred savings accounts for each American child. The government would deposit $1,000 at birth, followed by annual $500 deposits for the next five years. The money could be invested, but only in a limited number of mutual funds. And it could only be withdrawn upon retirement. There have been many versions of this proposal -- England has already enacted a similar program. Some suggest that the initial investment could compound to $100,000 by retirement age, while other estimates say they'll be millionaires if they use their resources wisely.

Consider being born in America with that kind of opportunity, with that kind of security.

The social advantages associated with KidSave are perhaps its best chances of ever becoming law. KidSave simultaneously promotes personal freedom and social mobility. The decreased wealth gap appeals to liberals, while individual investment and control is attractive to conservatives. As the conservative Brooks put it, "we would turn more people into capitalists if we distributed capital more broadly." 

Progressives Dedrick Muhammad and Chuck Collins wrote on www.unitedforafaireconomy.org that KidSave would "strengthen economic opportunities and wealth-building across the generations." However you look at it, conservatives and liberals seem to agree; childhood savings accounts are a responsible step toward not just saving Social Security, but also ensuring that all children have a sense of financial security from birth.

Not to say that this is a perfect proposal. There is no longer a Social Security surplus for immediate funding. And those of us in our 20s are too old for KidSave account benefits. However, the goals that KidSave promotes are worth pursuing, funding, and smoothing out. 

At the very least, a discussion on this kind of program could begin the political unification desperately needed after last year's divisive election. And at its best, KidSave could begin the social unification of America's divided prosperity, while also encouraging innovative investment. Our children are going to inherit a world replete with problems and opportunities beyond our foresight. With the exponential changes society faces today, we ought to give our children security that they can depend upon from birth. We've provided more than enough trouble. Let's leave them something safe, too.
 

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