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Here is a radical idea, with some math as an initial take at backing it up. First, let's assume we cannot solve the problem now, or in the short term. Short te
by Communitivity 7y ago
Here is a radical idea, with some math as an initial take at backing it up.
First, let's assume we cannot solve the problem now, or in the short term. Short term here is < 50 years. What then?
Second, let's commit ~$100bn to the problem annually for that 50 years, and make that our max investment per year, not counting administrative costs. This amount would increase slightly each year as population increased.
Third, divide that $100bn among the babies born that year (~4million in 2018), using trust funds to get 7% interest, compounded annually at the start of the year with no additional contributions, and untouchable until they turn 50. Do this for the babies born each year.
Fourth, institute a fiscal responsibility education program with the vigor that sex ed was approached with, at elementary, middle, and college levels. No idea what the cost of this would be, but it would have to be factored in.
Fifty years later the first babies born under this program will be able to access their money. Each will have roughly $1.4million, and able to live off 5% annual interest without decreasing that amount ($70k per year). Since a couple will have roughly two people, each of their children should get roughly the same amount. In other words... in fifty years there could be little to no poverty in this country, if only we could think long term.
To put the $100bn into perspective, the annual defense budget for 2019 is $617bn with another $68bn for war funding. So, we could possibly eliminate poverty for $32bn more than what we are spending on the war.
The above plan is all under CC-By-SA 2.0 license, by Bill Barnhill, see https://creativecommons.org/licenses/by-sa/2.0/ https://creativecommons.org/licenses/by-sa/2.0/.
- lifeisstillgood 7y ago1. I think that's roughly what Norway's Sovereign Wealth fund has / is doing 2. institute a fiscal responsibility education program with the vigor that sex ed was approached with, at elementary, middle, and college levels. I love that idea