Sunday, September 30, 2007

Hillary Suggests $5,000 Baby Bonds

Dallasblog.com | Sam Merten:
“During a forum hosted by the Congressional Black Caucus Friday, Hillary Clinton suggested every child born in the U.S. should get a $5,000 "baby bond" from the government. ... Clinton offered no suggestion as to how she would pay for the program.”
Ed Cognoski responds:

Mr Merten does put his finger on the problem with this proposal. Ironically, this is one big government handout that actually comes close to "paying for itself", which is how conservatives defended tax cut after tax cut during the historic Bush reversal of balanced budgets into the biggest deficits in our country's history. The theory was that tax cuts stimulated the economy, generating more business activity. Overall tax revenues would then rise even when rates are cuts. It didn't work out that way, but it was a great theory for winning votes.

Senator Clinton's proposal, if targeted solely at paying for higher education, could, in fact, pay for itself in higher lifetime earnings, and taxes, for those who otherwise would not be able to afford higher education. In an increasingly competitive world economy, increasing the skills of the workforce is the only way the United States can maintain its advantages. Senator Clinton's proposal deserves serious consideration.

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