Through his personal investments, my 18-month-old grandson is already a “thousandaire” and he has not yet mastered the fork.When President Donald Trump announced the creation of Trump Accounts, my son and daughter-in-law opened one immediately and “Grammie and Grampie” added $500. Using a standard investment return, if our grandson simply leaves his current $1,500 untouched, he will have $87,000 by the time he is 60. [snip] Solutions for Insolvency But Trump accounts may be even more than currently meets the eye. They may be the long-term cure to a failed government retirement system that is projected to be insolvent within a decade. Economic conservatives have long searched for solutions to America’s Social Security funding problem. Trump Accounts may be the sought-after framework — not by taking benefits from today’s retirees, but creating an ownership model for future generations, integrated over time, that gives every American child a stake in the nation’s economic growth from the beginning. [snip] Although President Bush’s individual retirement account proposals were circumvented by 9/11 and politics, the underlying idea still makes sense. The intellectual roots of this idea stretch back even further. Economist Milton Friedman argued for decades that individuals should have ownership over their financial futures rather than relying on government-managed systems. [snip] Creating Ownership In 1940, there were 42 workers funding every retiree; now there are fewer than three. Now, the average life expectancy is 79 and retirees can collect Social Security at 62. When the system was created, the average life span was 61, yet the retirement age was set at 65. You see what they did there, right? Today’s payouts were never part of the initial calculation. In this quagmire of bad math, Trump Accounts can solve two problems at once. First, they teach young Americans that the free market is their friend and partner in economic success. Instead of viewing Wall Street as only for the wealthy, millions of young Americans will experience firsthand the power of ownership, investing, and compound growth. [snip] Ownership matters for another reason: inheritance. One abject moral failure of Social Security is that it does not create an estate that retirees can leave to family or charities no matter how much they pay into the system during their working lives. Although surviving spouses and certain dependents have limited survivor benefits, accumulated payroll taxes are not inheritable personal assets. By contrast, money in a private investment account remains the property of the account holder and their estate, allowing families to transfer wealth across generations. Power of Compounding Trump Accounts are not an immediate replacement for Social Security, but may represent the first serious step toward a retirement system built on ownership instead of dependency — one that encourages Americans to participate in the success of the nation’s economy, build wealth over a lifetime, and leave something meaningful to the next generation. [snip] President Bush’s 2005 private account reform proposals simply arrived before their time. Trump Accounts could finally realize that vision. Rather than asking young Americans to rely on a broken government transfer system, these accounts introduce them to something every economic conservative understands: participation in the American economy is for everyone. Every dollar invested in Trump Accounts allows children to participate in the growth of the businesses, entrepreneurs, and workers who make our country prosperous. It may be even easier than learning how to use a fork. (*) Full article: https://thefederalist.com/2026/07/30/how-trump-accounts-could-solve-social-securitys-insolvency-crisis/ Post navigation Federal judge dismisses DOJ request to obtain unredacted voter rolls in New Jersey Glenn Beck: Mamdani’s New Grocery Store Plan is as DUMB as it Gets!
