"He claimed wealthy individuals acted to create the Giving Pledge and feared the public would "come at it with pitchforks," but there has been little progress since. While acknowledging the Giving Pledge was "well intentioned," Bessent argued Trump Accounts will be a much more "concrete" accomplishment. The new structure aims to establish a "shareholder economy" by providing a vehicle for Americans to have a stake in the economic system,"
"The core mechanism of the Trump Accounts involves every child born in the U.S. over the next five years receiving a $1,000 account. This money is to be invested in the S&P and cannot be accessed until the child turns 18, allowing them to witness the powerful effects of compounding interest. Furthermore, the Treasury will administer a "huge amount of financial literacy" education."
The Giving Pledge has been characterized as very amorphous and has shown little measurable progress since the panic among wealthy individuals during the Great Financial Crisis. Michael and Susan Dell donated $6.25 billion to fund Trump Accounts intended to create a shareholder economy by giving Americans a stake in the system. The proposal routes contributions through the Treasury and encourages philanthropists, foundations, finance professionals, and corporations to contribute directly to young Americans. Every child born in the U.S. over the next five years would receive a $1,000 account invested in the S&P, inaccessible until age 18, paired with substantial financial literacy education.
Read at Fortune
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