Learning to trade stocks, is Trump starting from children?

Trump directly called on companies to put money in.

According to the U.S. "Politico" website, recently, U.S. Treasury Secretary Bensinger publicly urged the U.S. business community and charitable organizations to fund the "Child Savings Account" named after Trump during a speech, "to secure the financial future of American children and make America great again."

What is this "Child Savings Account"?

It is a measure introduced by Trump's "Big Beautiful Act" this summer. Simply put, the U.S. government will open an account with $1,000 initial funds for newborns born between 2025 and 2028. This money comes from donations by large corporations, but it is not given directly to families, instead, it is forcibly invested in low-cost index funds that track the U.S. stock market index - in other words, investing in the stock market.

Although Trump claims this account can "accumulate hundreds of thousands of dollars," the actual return is based on an idealized assumption that each family deposits an additional $5,000 annually and the stock market maintains a 10.5% annual growth rate; without continuous external funding, the final return of just this $1,000 initial capital could hardly be what Trump called "changing the future."

Previously, the U.S. think tank "Brookings Institution" pointed out that Trump's "Child Savings Account" would only make the rich richer and the poor poorer - low-income families cannot afford the additional $5,000 annual investment and the risk of stock market fluctuations.

The fundamental purpose of Trump's introduction of the "Child Savings Account" is to shift the responsibility of children's social security from public finance to families and the capital market - at the same time as announcing the establishment of the "Child Savings Account," his "Big Beautiful Act" also significantly cut child-related social welfare and subsidies.

Original article: toutiao.com/article/1852102072094858/

Statement: The article represents the views of the author.