Cash on Delivery

Boston Globe reporter Rebecca Tuhus-Dubrow published a peice in last Sunday’s Boston Globe describing the movement to give every American a trust fund at birth. It is a good survey of how the idea has led to legislative proposals, such as the ASPIRE Act, which have attracted support among a growing list of policymakers. She wisely notes the list includes Vice-President Biden, current White House Chief of Staff Rahm Emmanuel, and Senator Chuck Schumer. Tuhus-Dubrow writes:

“As proponents see it, universal trust funds, or children’s savings accounts, would confront major issues that current policy fails to address. They would foster a culture of saving in an era when the rising price of important goods, such as college, has made assets increasingly crucial to achieve the good life free of indebtedness. They would work against the rampant debt that has contributed to the current financial crisis. And they could help remedy the overlooked problem of wealth inequality, or disparity in assets, which dwarfs even the income gulf between rich and poor.

For the poor, income is necessary to survive, but to escape poverty – to attain education and financial security, to plan ahead and provide offspring with prospects – assets are essential. Social scientists have even identified an “asset effect”: owning an asset, whatever the size, appears to impart a greater sense of control and confidence about the future.” Check it out. The whole thing is worth a read.