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Billionaire Says Government Should Give People Cash At Birth So They Can Retire As Millionaires

by : Emma Rosemurgey on : 06 Dec 2020 13:23
Billionaire Says Government Should Give People Cash At Birth So They Can Retire As MillionairesBloomberg/YouTube/PA

I think all of us have daydreamed about get-rich-quick schemes that will allow us to retire lounging on a beach, instead of working that 9-to-5 grind until death grinds us down.

But, one billionaire has come up with his own idea, which he believes will allow every American citizen to retire as a millionaire, while tackling the huge issue of wealth inequality in the states.

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Bill Ackman, CEO of Pershing Square Capital Management has proposed a new scheme that would see the government handing over cash to every single newborn American.

Billionaire Says Government Should Give People Cash At Birth So They Can Retire As MillionairesPexels

The ‘birthright’ scheme is designed even out the wealth inequality problem in the states, by allowing those ‘with no investment assets to participate in the success of capitalism.’

‘To do so, we need a programme that makes every American an owner of the compound growth in value of corporate America,’ he explained in The New York Times.

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‘The government could fund investment accounts for every child born in America, a programme we could call Birthright.’

The programme would invest in zero-cost equity index funds, which would prevent the owners from withdrawing from the pot until their retirement, meaning it would compound tax-free for 65 years or more.

Billionaire Says Government Should Give People Cash At Birth So They Can Retire As MillionairesPA Images

Typically, Americans see equity returns of 8% annually, meaning an initial investment of $6,750 at birth, could be worth more than $1 million by a retirement age of 65, or up to $2 million by the age of 74.

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Based on the average number of births in the US each year, the scheme would cost the American government around $26 billion annually.

Ackman knows what he’s talking about when it comes to investment. The 54-year-old managed to make an eye-watering $2.6 billion from the coronavirus market crash, after investing $27 million back in March.

‘The American dream has become a disappointment, or worse, for too many,’ he continued.

Billionaire Says Government Should Give People Cash At Birth So They Can Retire As MillionairesPexels
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‘In addition to helping all Americans build wealth for retirement, Birthright would encourage greater financial literacy, and give all Americans the opportunity to participate in the success of capitalism.’

However, this universal basic income (UBI) scheme isn’t entirely new. Former presidential candidate Andrew Yang proposed his own UBI programme titled Freedom Dividend in 2019, which consisted of paying Americans $1,000 a month, or $12,000 a year after they turn 18.

An increasing number of countries have considered implementing UBI schemes that would ensure a minimum wage for everyone in the country, off the back of the economic fallout caused by the ongoing pandemic.

If you have a story you want to tell, send it to UNILAD via [email protected]

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Emma Rosemurgey

Emma Rosemurgey is an NCTJ trained Journalist who started her career by producing The Royal Rosemurgey newspaper in 2004, which kept her family up to date with the goings on of her sleepy north east village. She graduated from the University of Central Lancashire in Preston and started her career in regional newspapers before joining Tyla (formerly Pretty 52) in 2017, and progressing onto UNILAD in 2019.

Topics: News, Now

Credits

The New York Times
  1. The New York Times

    Give Americans Cash at Birth So They Can Retire as Millionaires