The initiative would help low-income families and possibly diminish the racial wage gap in Massachusetts.
The state of Massachusetts is considering launching a government program that would invest in every child at birth, according to the Boston Globe.
Called “baby bonds,” the groundbreaking proposal would create a savings account for every eligible child. Upon reaching 18 years old, each recipient would gain access to the account and be able to use the funds as they choose, be it to purchase a house, attend university, or any other goal. As it currently stands, the legislation would allow beneficiaries to have their accounts until they turn 35 years old with the expectation that they continue to live, work, or pay taxes within the state.
Connecticut was the first to propose the concept of baby bonds, and the idea has since gained traction in other states, including California, Vermont, and New York. Now, legislators in Massachusetts are pushing this initiative, which would help low-income families and possibly diminish the racial wage gap.
“You have this inequality, but also a state that’s been at the forefront of innovative power-making,” said Darrick Hamilton, an economist who helped devise the baby bonds idea. “It’s a prime place to [implement baby bonds].”
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Source: Black Enterprise
