Republicans have once again shown their penchant for big spending and fiscal irresponsibility by pushing forward a massive bill that will push America further into financial ruin. The bill, dubbed the “Big Beautiful Bill,” includes provisions such as Trump’s plan to pour billions into the military-industrial complex for no other reason than to impress with a big number.
One particularly egregious example of the GOP’s embrace of big-government folly is the proposal for “Trump Accounts,” which would saddle the federal government with borrowing $1,000 per newborn baby to fund savings accounts with lackluster tax benefits that hardly anyone is clamoring for.
The bill, championed by Republican Senator Ted Cruz, would establish these accounts with $1,000 for babies born between 2025 and 2028. Parents, family, and friends could contribute additional funds, which would be invested solely in US stock funds, potentially exposing young account holders to unnecessary market volatility.
Despite the touted tax benefits and restrictions on withdrawals, financial experts are skeptical of the utility of these accounts compared to other existing options like 529 or Roth IRA accounts.

Financial institutions are also wary of the administrative costs associated with these accounts, making it unlikely that they will gain widespread adoption.
ZeroHedge readers may not be surprised to learn that the architect of these “baby bond” schemes, Darrick Hamilton, is a progressive leftist college professor with a history of advocating for redistribution policies to address racial disparities.
Despite criticism from financial experts, some within the Trump administration, like Kevin Hassett, have embraced the accounts as a way to promote financial inclusion and wealth-sharing.
However, the skepticism remains, with many questioning the necessity and effectiveness of these accounts in the broader landscape of financial planning.
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