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How “baby bonds” could help close the wealth gap | Darrick Hamilton

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Hard work, resilience and grit lead to success, right? This narrative pervades the way we think, says economist Darrick Hamilton, but the truth is that our chances at economic security have less to do with what we do and more to do with the wealth position we're born into. Enter "baby bonds": trust accounts of up to $60,000 for every newborn, calibrated to the wealth of their family. Learn how this bold proposal could help us reduce inequality — and give every child personal seed money for important things like going to college, buying a home or starting a business. "Without capital, inequality is locked in," Hamilton says. "When it comes to economic security, wealth is both the beginning and the end."

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57 Comments on How “baby bonds” could help close the wealth gap | Darrick Hamilton

  1. Millionaires Mindset // 15th January 2019 at 3:46 pm // Reply

    An idea, but the challenges to make this happen is enormous.

  2. Dr1ven Industries // 15th January 2019 at 3:46 pm // Reply

    Great video and financial freedom is important! Always inspiring and I always find inspiration for my own channel here!

  3. Matthew Withum // 15th January 2019 at 3:48 pm // Reply

    So where does the money come from to fund these baby bonds?

  4. Timothy Drake // 15th January 2019 at 3:49 pm // Reply

    A case for socialism. Some revolutionary.. GTFO #TaxationIsTheft

    • Timothy Drake // 15th January 2019 at 7:00 pm // Reply

      +KGBz Ultimately yes but I believe in evolution, not revolution. Evolution is the way of least bloodshed and the most crystallised philosophical ideas. Unfortunately we’re heading straight into the shredder right now so it may turn out to be revolution, if we want it or not. Unfortunately part II: after revolution often times comes a worse version of authoritarianism.

    • You are foolish. Listen to what he is saying and stop your knee jerk dance.

    • Timothy Drake nonsense, he’s advocating for pretty reasonable policies. European nations already have high levels of social welfare and they’re doing great. You may pay a little more in tax but you get far more for that money. Also unless you were a multimillionaire CEO, the tax rate wouldn’t even be much higher for you. If I was a millionaire, I’d rather pay more taxes so that everyone gets healthcare and the working poor don’t starve.

    • +Timothy Drake that’s the joooo plan

    • Timothy Drake // 15th January 2019 at 8:12 pm // Reply

      +KGBz lol, well I dunno about that.

  5. Lol we should trust the government with our money? Naive idea. Remember what happened with our parents’ social security money? Gone.

    • +Kabatification It was never economically viable. It was broken the day it was born

    • Kabatification // 15th January 2019 at 7:09 pm // Reply

      +Walter Girao Sure, I rather meant that soon it will finally be seen how broken this system is and everything will collapse.

    • Lidia is trolling.

    • in ussr was something like this all money that people had on their acounts gone in 1990. from 70-80-th was deficit of goods so government obliged people to invest 2/3 of their money in bank accounts. Then freeze it and stole. was some payments without count of inflation, but money lost 27 times of their price. And the car what people can theoretically buy for his money turned into bicycle without wheels.

  6. *BUY HIGH*

    *SELL LOW*

  7. A major reason why minorities are disproportionately on the lower end of the wealth spectrum is the constant influx of minority migrants. It is simple minded to assume that people coming to this country for opportunity will immediately realize it upon arrival. As you acknowledge accumulating wealth is a generational process. You must accept the reality that as we continue to accept poor immigrants, whatever demographic that they represent will be dragged down in economic metrics. This is not a sign the capitalism does not provide enough opportunity, quite the opposite, the abundance of opportunity is why the poor immigrants are flooding here. This talk is nothing more than power politics masquerading as economics.

    That being said baby bonds for underprivileged children is a great idea. But it should be done via private charity, not the government.

    • and do they even realize that by accepting all of these immigrants (talking about the illegal ones) there will be less to go around for everyone else who deserves to be in that country and pays taxes.

    • +zkxnkj If the US would stop droning entire continents for just a few days maybe people from Asia and Africa wouldn’t be so willing to risk their lives and what little they have just to get somewhere where they will hopefully be safe from fanatical christian on another crusade US. I wonder how many people think actions have consequences!? You dont seem to be one of those people!

    • +Super Saber there are other places they could go. and living off of other people’s hard work isn’t excusable.

    • Timothy Drake // 15th January 2019 at 6:54 pm // Reply

      Well said!

  8. *Darrick Hamilton is a fraud. He got this idea from a Gerber baby food commercial, which has been offering such a program for years.*

  9. Stupid idea. Ironically a good way to keep the blacks down, which is a good way to keep labor cheap.
    For christ sake, when will the social engineers learn it doesn’t help? It’s going to help stratify society even more.

    Offering this as a bandaid for the actual poor families at least would be moral, making into social engineering what is probably something that will backfire ain’t a happy thing.

    • imjustsaying tho // 15th January 2019 at 4:20 pm // Reply

      lloydgush this is a great idea. 10000 dollars would have changed my whole life at 18, i could have went to school, or just started a business out of the gate. Invest in the stockmarket. Something, to make that money flip.

    • +imjustsaying tho yes, but if everyone has that kind of money, then it isn’t worth as much. college diplomas would either become more expensive or less worthy in the marketplace. there would be less goods to go around as well.

    • ​+imjustsaying tho So probably pointless college, or risky investment?
      I seriously trust more the average 18yo with starting a business than either of the other two, but unfortunately gender studies or late criptocurrency investment are the most likely result.

      I’m not talking about you, I’m talking about the average 18yo.

      Though, let’s be honest, these days with online courses we are quite more able to trust them with money for education.

      I’m not a moronic conservative who thinks teens will spend all in prostitutes and cocaine, I know mostly will be essentials and what’s left will be investments.
      Problem with investments is that it’s basically gambling.
      I’m not a ranging marxist who thinks investments are something of the devil (god, education is an investment) but I know it’s gambling with extra steps, problem is that we got a lot of “cassino’s” around, expert in selling money pits, specially with feel good promises.
      (churches used to be the expert in this area. Unfortunately their appeal didn’t completely die out.)

      When it comes to starting companies, I trust them more even with the rate of failure, because the ones who succeed will “provide” a job to the ones that fail, as if it was a global diversified investment, and the ones that fail at least will learn a goddamn lot in the process.
      The problem with education and stocks is that it doesn’t have the same effect, and ironically both will be tried more, and the temptation to sink more money than you got is abysmal, specially as both come with way more “following the herd” mentality attached with it.
      And education comes with “bettering oneself” bait on top of that.

  10. This guy should be trying to close the I. Q. gap lol

  11. Jorge Amado Soria Ramírez // 15th January 2019 at 4:13 pm // Reply

    “race is a bigger predictor than class”
    5 minutes later
    “meager economic circumstances, not bad decision making…”
    5 minutes later
    “wealth begets more wealth”

    so, race got nothing to do with it, right? It IS class, after all.
    Let’s try to get a conference without obvious contradictions first, please.

    • He says “…race is a bigger predictor than class…” as to predict if an individual is wealthy. Not saying that race is a factor in an individuals wealth. No obvious contradictions here, I believe.

  12. KATIA LUZ MARRERO // 15th January 2019 at 4:22 pm // Reply

    If rather protect me kids from you and that bond

  13. Where do they find these clowns?

  14. Ye$. Its true every where…racisim is the worst thing that makes it difficult for some people to survive…..but this framing is just because of the image they have been shaped or they created it by themselves….

  15. Genius by Design // 15th January 2019 at 4:45 pm // Reply

    The Elites will NEVER let their slaves go without violence !!!

  16. Neither I, nor any of my white age peers that I know, have anywhere near $170,000 in wealth, including home equity. If I had to estimate, I’d say I have about $30,000 in wealth, including equity. The problem with the word “typical” is we don’t really know what that means statistically. If 1% of white families have a billion dollars, and the rest of us have just as much as minority families, your numbers aren’t going to demonstrate anything close to reality.

  17. This is an interesting concept. Like giving everyone ladders of different height based on how far each person needs to climb to be on the same level as far as basic rights/survival. I think that is equity? But there will still be richer people that can outbuy certain things and make life unfair. But I would have loved $60,000 at 18 or something. Wouldn’t be in debt for school and a car. A totally different life. Crazy to imagine how far people can get when they are millionaires.

  18. Samuel Carter // 15th January 2019 at 7:20 pm // Reply

    TED just keeps pushing pure Marxism lately.

  19. People that win the lottery often lose it all because they don’t know anything about money. Perhaps the reason people that come from money have a better chance at being wealthy is because they are taught about money for their whole life.
    Giving everyone a winning lottery ticket might help a couple people but will probably be mostly wasted on the majority.
    It might be better to spend $2 billion a year to provide and promote free financial education classes for anyone and everyone in the country; because anyone that can manage to avoid crippling debt has a much better chance of getting ahead.

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