President Trump has begun rolling out his new "Trump Accounts," which provide newborn Americans with a $1,000 deposit into an investment account at birth. The funds can be used to cover education costs, start a business, or build a family once the child turns 18.
Texas Lt. Governor Dan Patrick, in addition to praising President Trump’s initiative, is calling for the state to implement an identical program. That would mean Texas children would receive a total of $2,000 from the state and federal governments combined.
While this might sound appealing at first glance, it has raised red flags among conservative economists like Dr. Vance Ginn, who said: “Nothing is free, especially when the government wants to spend money. And that’s what’s happening here, to the tune of $400 million in tax hikes.”
The claim from both the Trump team and Lt. Governor Patrick here in Texas is that this will help set up Americans for the future. But Ginn argues there’s a better way to achieve that. “It’s by reducing property taxes, lowering other taxes, and cutting government spending and regulations to improve housing affordability,” he said.
He emphasized that, at the end of the day, the private sector is far better at creating prosperity—so that’s where the government should focus its efforts to empower families.