Savings Bonds Anyone?

One of the Presidential Candidates is promoting a Government run and funded (?) savings bond program for each child. The NY Times notes:

....was introducing the audience to what is becoming a central component of his emerging platform, an economic proposal known as baby bonds that would create a government-run savings account for every child born in the United States. The program is designed to aggressively address the nation’s growing wealth gap, and the government’s contributions would grow based on a family’s economic standing.

 Now as one of the "Quiet Generation" those of us born too young to be in WW II and yt born before its end, we had US Savings Bonds. In fact if you worked for some big corporation you had to buy them every year along with United Way contributions. Now sometime in the 70s I discovered this pile and thought I was rich! They were all $25 bonds, some almost 30 years old. But wait. They paid about 1.75% annual interest for first 20 years and then zero interest. Inflation was averaging 8-10% per year. So I was losing 6-7% per year on those dumb things.

Folks, Government anything is a total disaster. You are better off investing in Peruvian Turkey farms, high altitude turkeys are alleged to be healthful. Unless of course if you are a Vegan.

Income inequality will will always have with us. Getting a good education in a field with real jobs and working your but off and not trusting any company to take care of you is the best advice one can get. Government savings bonds are not. Oh yes, I forgot, I had to pay taxes on my 1.75% interest, not even compounded! Good Luck Senator!