What
does the bill do?
Why
is a bill to promote asset building for children necessary?
Who
is eligible? Will illegal immigrants or children who become citizens get
accounts?
Will
children born before the bill takes effect get accounts?
Why
do wealthy people get these accounts?
Why
do poor people who don't pay taxes get accounts?
Is it
unrealistic to expect those with low incomes to save when they already
struggle to get by?
How
The America Saving for Personal Investment, Retirement, and Education Act of 2009 ("The ASPIRE Act of 2009")
Purpose of
the Bill
To encourage savings, promote
financial literacy, and expand opportunities for young adults by establishing a
Lifetime Savings Account for every newborn child.
In recent years, the role that savings and
assets play in shaping people's lives has increasingly captured the attention
of researchers, policy analysts and elected officials. Their interest in
savings and building wealth has grown along with an increased awareness of
specific policy tools and interventions, such as matched savings accounts
available for lower-income workers. The launch of the SEED Initiative in
October 2003 was an important marker in this process because it introduced the
Many Americans have no assets to their name; they are disadvantaged from the start of their lives. One promising idea to expand opportunity and broaden asset ownership is to endow every newborn child with an American Stakeholder Account (ASA). This paper intends to serve as a vehicle to review and consider the policy design choices that would give this proposal its ultimate shape and direction. It builds on previous analytical work and offers new insights in examining the challenges, benefits,… more
To greatly expand opportunity, to broaden asset ownership, and to fortify the American economy for the long-haul, an American Stakeholder Account (ASA) should be established for every child born in America and made available to all other persons age 18 and under. Over time, this “Homestead Act of the 21st Century” will evolve into a universal system through which all Americans can meet their asset needs throughout life— securing post-secondary education and life-long learning, purchasing a first home, making investments,… more
