Investing in Our Future: A Comprehensive Plan for Newborn Support and Universal Basic Income

To achieve a system where each newborn in the U.S. receives adequate healthcare, social security, retirement benefits, a tiny house, and education—all while providing a universal basic income (UBI) of $50K or more annually—the U.S. government would need to implement a multi-pronged approach involving targeted investments, bonds, taxes, and economic restructuring. Here's how it might work:

1. Investment in Bonds for Each Newborn ($125K at Birth)

The U.S. government could issue long-term bonds for each newborn starting January 2025, with an initial investment of $125K per child. These bonds would be invested in high-yield instruments (e.g., government securities or blue-chip stocks) that grow over the child's lifetime.

Assuming an interest rate of 7-10% annually (realistic in certain market conditions), the $125K could grow to $1.5 million - $3 million over the course of 65 years.

The interest earned from these bonds could be distributed as follows:

• Healthcare: The U.S. could set aside a portion of the interest for healthcare, covering medical needs from birth until death. The payout could be structured as a monthly annuity, ensuring that $500 - $1,000 per month is available for healthcare expenses.

  
  

• Education at Age 18: At 18, part of the bond’s growth could be used to fund education (e.g., $50K - $150K). This could cover college tuition, trade school, or other educational paths.

  
  

• Tiny Home: By age 30-40, another portion could be used to provide a tiny house or small property worth $50K - $150K, securing a home for life.

  
  

• Retirement and Social Security: At retirement (age 62 or older), the bond's accumulated value would be used as a personal retirement fund, effectively replacing or enhancing Social Security. This could yield payouts of $75K - $100K annually, depending on market conditions.

  
  

2. Can the U.S. Incur Debt and Pay It Back?

The U.S. could certainly issue bonds to fund these initiatives. The current national debt is already significant (over $33 trillion), but issuing more debt to cover $125K per newborn could be viewed as an investment in human capital and societal stability.

Debt repayment would be facilitated through the economic gains created by this system. As education improves, people are more productive and generate higher tax revenues. Also, reducing homelessness and poverty through tiny homes and healthcare would lessen the financial burden on welfare programs, law enforcement, and incarceration.

Bonds for Investors: Investors (both domestic and foreign) who purchase these bonds could receive interest payments from the government. The system would need to ensure that the interest earned by the bondholders is sustainable and doesn’t exceed the returns on the investments being made for each newborn.

3. Achieving Universal Basic Income (UBI)

To implement UBI of $50K or more annually, the government would need to rely on the productivity gains from automation, artificial intelligence, and technological advancements. As the nature of work shifts, fewer jobs will require manual labor, and more people will need income support.

Funding UBI:

• Tax on Automation & AI: One suggestion is a tax on companies using AI and automated systems that replace human labor. This tax revenue could help fund the UBI.

  
  

• Progressive Taxation: A wealth tax on the richest Americans, capital gains taxes, and carbon taxes (targeting polluters) could provide significant funding for UBI.

  
  

• Bonds for UBI: Similar to the healthcare bonds for newborns, the U.S. could issue bonds specifically for UBI, using the returns on these investments to fund the UBI program. With careful planning, a return on investment could be structured to generate $50K per person annually.

  
  

4. Social Impacts of the Plan

• Decreased Poverty and Homelessness: By providing tiny homes and UBI, the system would address the root causes of poverty, reducing the need for expensive welfare programs, incarceration, and emergency healthcare services.

  
  

• Healthcare Savings: By having an upfront investment in healthcare from birth, the U.S. could reduce costs associated with chronic diseases and untreated conditions, saving billions in emergency care expenses.

  
  

• Boosting the Economy: UBI recipients would spend money on goods and services, boosting demand in the economy, which in turn generates tax revenue and supports businesses.

  
  

5. Alternatives or Enhancements

• Sovereign Wealth Fund: The U.S. could create a sovereign wealth fund from a combination of taxes on natural resources, like oil or renewable energy, and technology gains. Norway has used its oil revenues to create a $1.3 trillion fund that pays out to its citizens.

  
  

• Carbon Dividends: A tax on carbon emissions could be redistributed directly to citizens as carbon dividends, supplementing UBI or helping to fund the bond investments.

  
  

Summary

A $125K debt per newborn could be used to invest in bonds that provide healthcare, education, housing, and retirement over a lifetime. This debt would be paid back through economic growth, higher tax revenues, and reduced government spending on poverty-related issues.

UBI of $50K+ could be achieved through progressive taxes, taxing automation, and sovereign wealth funds. This system would enhance societal well-being, reduce homelessness and poverty, and prepare the U.S. for a more automated, AI-driven future.

While complex, this kind of investment is feasible if structured with careful financial planning and economic strategy. Together, we can create a more equitable society that ensures every newborn has the resources they need to thrive.