Sec. Bessant Says Trump Baby Accounts a Backdoor For Privatizilng Social Security

[DaisyDay]

https://www.axios.com/2025/07/31/social-security-bessent-trump-privatize

Scott Bessent kicked a hornet's nest Wednesday when he said that new Trump accounts for children were "in a way, a backdoor for privatizing Social Security."
Why it matters: The Treasury secretary is just the latest member of the Trump administration to touch the third rail of American politics, making comments that give political opponents fuel for criticism and worry advocates for Social Security.

...The bottom line: The White House says it won't touch Social Security, but it keeps saying and doing things that suggest otherwise.​

Raise the contribution cap to fully fund SS.

 

[Fantine]

It's relatively meaningless. "While the investment would be symbolically meaningful, it’s a relatively small financial commitment to addressing child poverty in the wider $7 trillion federal budget. Assuming a 7% return, the $1,000 would grow to roughly $3,570 over 18 years."

https://apnews.com/article/baby-bonds-trump-child-poverty-8503180dc5c57a2f20dd59d7ece01d6a

The "growth" would be taxed.
So exactly how much would $3,570. be worth in 2043 dollars?
in 18 years? And how much would go to taxes?
And how would the money jeopardize their chances for other kinds of financial aid? There isnt any direct link or connection to Social Security. The promo says maybe it would "make people saving for retirement more comfortable with investing."

 

[Say it aint so]

https://www.axios.com/2025/07/31/social-security-bessent-trump-privatize

Scott Bessent kicked a hornet's nest Wednesday when he said that new Trump accounts for children were "in a way, a backdoor for privatizing Social Security."​

Why it matters: The Treasury secretary is just the latest member of the Trump administration to touch the third rail of American politics, making comments that give political opponents fuel for criticism and worry advocates for Social Security.​

​

...The bottom line: The White House says it won't touch Social Security, but it keeps saying and doing things that suggest otherwise.​

Raise the contribution cap to fully fund SS.

This has been a GOP goal going back to the Bush years. Yet Americans will get sucked into that echo chamber of believing they wouldn't do it, just like they did with medicaid cuts. And yes, medicare too if they get half a chance.

 

[DaisyDay]

This has been a GOP goal going back to the Bush years. Yet Americans will get sucked into that echo chamber of believing they wouldn't do it, just like they did with medicaid cuts. And yes, medicare too if they get half a chance.

In the Bush years, the rhetoric was that the Treasury Department was so bad at handling money that if everyone were just allowed to invest their own FICA all the seniors would be wealthy....then the Great Recession hit.

 

[Richard T]

In the Bush years, the rhetoric was that the Treasury Department was so bad at handling money that if everyone were just allowed to invest their own FICA all the seniors would be wealthy....then the Great Recession hit.

To privatize social security you have to have cash to fund the accounts. All social security funds go to recipients now. The surplus too is just iou notes that pay the trust fund around 3% interest.
Bush's proposal was a good one. It would divert just a portion to private funds. Now its too late because where will all that money come from?

 

[DaisyDay]

To privatize social security you have to have cash to fund the accounts. All social security funds go to recipients now. The surplus too is just iou notes that pay the trust fund around 3% interest.
Bush's proposal was a good one. It would divert just a portion to private funds. Now its too late because where will all that money come from?

Bush's proposal is terrible. People can set up and maintain private funds for themselves now. Too many people are very bad at investment so the diverted SS funds would not alleviate poverty among geriatrics. In addition, Bush's proposal would have allowed people to withdraw, not merely borrow, the funds for emergencies - which impoverished people tend to have.