ktownlowdown.com

Just when you think the Smartest Woman in the World can’t get any smarter, she comes up with a great idea. Scott has a great post about this and links to Doug Mataconis at TheLibertyPapers… where he does the math on the Bond for Babies…or should be called Bondage for Babies.

Maybe Hillary could offer the following idea in order to help kids pay for college or put a down payment on thier first home:

Require all children to work part-time at the age of 15. They would continue working until high school graduation. But you say, “What if that work takes too much time away from studying, and they don’t graduate from high school?”…then the result is that they would either be motivated to graduate so they don’t have to only work part-time jobs, or if they just can’t get it together enough to work part-time and graduate, the US will finally have enough workers to do those jobs that we hear American just won’t do.

Let’s look at the math..assuming that this unskilled child earns $9.00/hr and works 40 weeks a year for 20 hours a week:

$9/hr x 20 hr/wk x 40 wks/yr = $7,200/yr.

Now let’s assume they work full time during the summer:

$9/hr x 40hr/wk x 12 wks/summer = $4,320.

That’s $11,520 per yr (minus taxes of course…and wait…taxes = revenue for Uncle Sam)

$11,520 x 3 yrs (age 15 to 18) = $34,560.

Now let’s assume that the average 15 - 18 year old could save 50% of their earnings, because either parents or the government is taking care of other essentials (like food and shelter)…that’s $1,920 saved/invested per year….assuming compound interest and 12% return…that’s $7,256.

Now let’s assume that these children, after working part time through high school, graduating, managing to save just under $2,000 per year for three years, investing it, and never touching it again until age 48 (that 30 years of growth)…the total would be approximately $217,398.00 (assuming 12% return).   Now, this does not include the monies that these hard working children, when adults, would earn and save/invest during and after college.  Maybe some of the habits they learned as children would carry over to their adult years.

So I propose that Hillary should log onto the internet and Google “Investment Calculator” and run a few numbers.

What’s better…

Option 1:

Teaching your child to get off their butt and get a job at a young age, and spend less than they earn, and by the time most people are realizing that they may not have enough money to pay all their credit card bills, they could have $217,398…or…(which in 30 years may still be enough to put down on a home)

Option 2:

Take $5,000 from the people that chose Option 1 above, and teach them that wealth cannot be created, it can only be re-distributed.

Let me give you a hint…try asking for $5 from everyone you meet and see how well you do at that.

Don’t get me wrong, it’s not like Republicans are fiscally responsible, but I can’t recall any Republican that promised Socialized medicine and higher taxes before they were elected.

DISCLAIMER:  The above calculations were based on common sense by a person that has advanced training in balancing a check book and paying bills and doing a household budget. Qualifications that would preclude such an individual from being elected to public office…unless your name is Ron Paul.