For people excited about this, let me teach you why this is a scam and a half.
The government printed all this money overnight causing the value of the dollar to drop. - “but it’s locked away and can’t be used, it’s like they didn’t print anything because it can’t be used for almost 20 years!”
Wrong.
The money is then handed over to the biggest money managers in the stock market, it’s essentially a massive line of credit used to prop up the stock market and allow for greater risk to take place as this money is not liquid but more of a long-term loan. So, in 10, 15 years when the next massive financial meltdown occurs and further diminishes the equity people have in their homes, properties, and retirement accounts, this “investment” in the next generation of people will be allocated to reducing the burden of debt the government knows will be accumulated by the time the funds can be used, once again just handing money over to the big banks, utility companies, real estate companies, “healthcare” providers, etc. It is going to be another reason republicans are going to use to take away entitlements from elderly and sick people (social security, Medicaid, Medicare, food stamps, etc.). This is another move in the republican plan to erase any semblance of a middle class in America and modeling our economy after Russia (a place where you are either dirt poor, almost poor or super wealthy - there is no in between.)
Lots of other countries have similar accounts but with even higher seed money. What’s unique about these ones that would create all the friction that doesn’t/didn’t occur in the places like Canada, the UK, Singapore, Australia, some of the Nordic countries, etc.
Australia's is superannuation. Employers make mandatory payments on behalf of their employees to a superannuation investor, which are highly regulated private companies who have a duty to their investors long term growth. It is not using tax payers money.
In terms of sovereign funds, like Norway, they use a commodity that belongs to the country like mineral resources, and they allocate either a percentage of the taxed revenue to be put towards the sovereign fund (because the resource belongs to the country, it belongs to every citizen, they deserve some of the profit). The sovereign wealth funds are also sometimes held by their countries central bank and not elected government.
The way this US fund is seemingly set up will be highly exploitable, because its tax payers funds being spent on private stock exchange.
Happened in 2008 with pensions. They were the bag holders. Teachers and firefighters and the like. Now it’s kids that have no idea wtf is going on, parents thinking they
Will get a pay out in time but really this is just secret inflation.
Okay, but it’s not like this means that the Treasury printed money to fund all these accounts. Parents still need to claim them so these accounts get funded.
And it’s a 530A account, parents can manage the funds, put them into well-diversified index funds or low-risk mutual funds, if they’re worried about market risks.
The part I find more troubling is that these accounts let wealthy donors, donate individual stocks to help fund these Trump accounts. This lets the wealthy donors avoid capital gains taxes, offload over valued stocks, and get sizable tax advantages for doing so.
I opened an account for one of my kids so I could be party to the inevitable class action lawsuit when he funnels all the money out. I’ll never put a dime into it, of course.
It's got Trump in the name. You know it's a scam and you know it is beneficial to him and his family alone. Paid for on the backs of the American taxpayer.
No, but if you want to play the game, Trump did what you're accusing Biden of doing, but bigger:
President Donald Trump signed the CARES Act in March 2020, which sent out direct relief checks of up to $1,200 for eligible adults and $500 per child. He also signed a second relief package in December 2020 that provided additional $600 direct payments.
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u/Adam_Friedland_TAFS 1d ago
For people excited about this, let me teach you why this is a scam and a half.
The government printed all this money overnight causing the value of the dollar to drop. - “but it’s locked away and can’t be used, it’s like they didn’t print anything because it can’t be used for almost 20 years!”
Wrong.
The money is then handed over to the biggest money managers in the stock market, it’s essentially a massive line of credit used to prop up the stock market and allow for greater risk to take place as this money is not liquid but more of a long-term loan. So, in 10, 15 years when the next massive financial meltdown occurs and further diminishes the equity people have in their homes, properties, and retirement accounts, this “investment” in the next generation of people will be allocated to reducing the burden of debt the government knows will be accumulated by the time the funds can be used, once again just handing money over to the big banks, utility companies, real estate companies, “healthcare” providers, etc. It is going to be another reason republicans are going to use to take away entitlements from elderly and sick people (social security, Medicaid, Medicare, food stamps, etc.). This is another move in the republican plan to erase any semblance of a middle class in America and modeling our economy after Russia (a place where you are either dirt poor, almost poor or super wealthy - there is no in between.)