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Publicly-funded investment account for babies
Baby bonds are a government policy in which every child receives at birth a publicly funded trust account, potentially with more generous funding for lower-income families 1 million per person born until 2025.[1] Economists William Darity and Darrick Hamilton proposed the policy in 2010 as a mechanism to reduce the racial wealth gap in the United States.[2] A 2019 analysis of the proposal by Naomi Zewde projects that baby bonds would reduce the median racial wealth gap between white and black young Americans from a factor of 16 to a factor of 1.4.[3]
One example is the now-defunct child trust fund in the United Kingdom.[4][5]
In American English, the term "baby bond" can alternatively refer to a bond with a par value of $1,000 or less.[4]
^"Segregation still blights the lives of African-Americans". The Economist. ISSN 0013-0613. Retrieved 2020-07-12.
^Hamilton, Darrick; William Darity, Jr (2010-01-01). "Can 'Baby Bonds' Eliminate the Racial Wealth Gap in Putative Post-Racial America?". The Review of Black Political Economy. 37 (3–4): 207–216. doi:10.1007/s12114-010-9063-1. S2CID 17880568.
^Zewde, Naomi (2019-11-06). "Universal Baby Bonds Reduce Black-White Wealth Inequality, Progressively Raise Net Worth of All Young Adults". The Review of Black Political Economy. 47: 3–19. doi:10.1177/0034644619885321. S2CID 92979642.
^ ab"Baby bond". Cambridge Dictionary. Archived from the original on 2015-08-22. Retrieved 2021-01-16.
^"£9bn bonanza begins as child trust funds come of age". the Guardian. 2020-08-22. Retrieved 2021-01-16.
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