Republican Senator Ted Cruz introduced a bill seeking to incentivize boosting the declining population across the United States on May 12. According to a press release, Ted Cruz wishes lawmakers to provide $1,000 per American baby at birth. According to news sources, the House of Representatives released the “Invest America Act,” a version of the bill, on May 15. “Every child in America will have private investment accounts that will compound over their lives, enhancing the prosperity and economic participation of the vast majority of Americans,” Ted Cruz said.
Yet, critics of the bill question how such an economic proposition is possible and what the ultimate goal of the senator’s initiative is. Ted Cruz’s bill enters the world as the American debt climbs to $36 trillion, leaving some scratching their heads. Cruz’s proposal aligns with President Donald Trump’s broad economic agenda, described as a “big, beautiful bill.” Sceptics remarked how Ted Cruz proposed legislation similar to that of Democratic Senator Cory Booker (New Jersey) in 2020.
Ted Cruz Cruising for American Families
The Texas senator gave three central reasons for the bill. “Compound growth is one of the great miracles of the world,” Ted Cruz said. ”And if you get people investing for a long time, starting at birth, you can get incredible numbers.” Secondly, as the child grows, their account will be open to private investments from family, friends, and other entities. Then, when the child reaches 18, the account will be available to them.
According to federal law, the funds are taxable once the child reaches adulthood. Young adults could spend money on college tuition, purchasing a home, or starting a business. Ted Cruz recently expressed his enthusiasm in a podcast, saying, “We’re creating a world where every child, every single child, from gazillionaire kids to a homeless kid on the street suddenly has an account invested in the market.”
Senator Ted Cruz and fellow Republicans saw the bill placed under the acronym “MAGA” as part of the economic agenda laid out by Donald Trump. According to Ted Cruz, the president “enthusiastically supports” the proposal. A potential $3.7 billion in “seed money” could be generated if the measure passes the House and Senate.
Ted Cruz and the Capitalist Vision
In a recent podcast, the senator said, “What really sold me on this was making a generation of capitalists. It is making children owners of the major companies in America, and that, to me, was really exciting.” Ted Cruz believes in the capitalists’ vision and desires the next generation to participate in the free market. Baby portfolio accounts might tip the population scale and give future parents a sense of greater security in starting families.
Will Americans take Ted Cruz up on his offer if the bill passes? Only time will tell the results, but Cruz remains confident not only in support for the bill, but also in the American people.“I think that has a profound impact for future generations of Texans and Americans,” the senator said.
Ted Cruz Crunches the Numbers
“The account investments can be placed in a broad, low-cost fund that tracks the S&P 500, growing tax-deferred until the individual reaches age 18,” Cruz said, according to a Fox News report. With approximately 3.7 million babies born in the US, the amount of funds will reflect the increase in birth rates. Companies in the private sector could also contribute to the accounts of their employees’ children.
Based on current interest rates and projected contribution totals, a recipient could accumulate $170,000 by age 18. Ted Cruz believes his bill will foster economic and personal growth in the coming years. As families grow, the children will have confidence knowing that something more than college debt awaits them.
In a press release, Cruz stated, “Every child in America will have private investment accounts that will compound over their lives, enhancing most Americans’ prosperity and economic participation. Years from now, when people talk about the changes created by Republican efforts in this Congress, this is one of the landmark achievements they will talk about.”
