How Baby Bonds Could Help Close the Racial Wealth Gap
How Baby Bonds Could Help Close the Racial Wealth Gap
We examine whether the income-based baby bond program proposed in the American Opportunity Accounts Act can address the racial wealth gap. We find that baby bonds can have a significant impact on the wealth gap when examining the wealth available to each child when reaching 18.
What's Inside
What's Inside
- How baby bonds could help narrow the persistent racial wealth gap in the United States
- Some areas of improvement for baby bond program designs that could help maximize their benefit
- The significance of including home equity in a family’s wealth when assessing the racial wealth gap and the potential impact of baby bonds