But that number is misleading. I have a spouse and three children. Does that mean we all will get 10K/yr?
I have had a different thought on this in the past; Every child born should have $10K put into an account in their name on the day they are born. It will gain interest and grow until they are 18, then they get the money. And as an adult after 21, they are taxed at some rate to pay back the initial 10K that will then be deposited into the account of some other new baby.
I don't like the interest part of the formula. There is too much financial "imprisonment" because of interest.
But what you are really saying is put aside $10k and grow it through investments. Then withdraw the gains only, and make the $10k a withdraw-but-pay-back option.
An increase in income is generally tied to having less children, not more. I read a study (which I can't find right now) that studied the effect of policies that gave income based on the amount of children, and there is no increase on the amount of children people have. Argentina, for instance, has a program called Asignación Universal Por Hijo that (roughly) pays you for each child you have, provided he goes to school.
Only the social security number holder at 18 has access to the funds. I don't think it would be too hard to include methods to prevent abuse. I may too idealistic.
How much would that $10k grow in 18 years? Bank of America's "Platinum Honors" interest rate is 0.06%[1], and over 18 years of compounding interest that's only $10,108.55 unless I've messed up my math.
At 2.25% that's $14,925.87, right? Don't get me wrong, I'd love to have had a ~$15k windfall right after high school, but I don't think that would be comparable to an ongoing basic income payment.
"Down on your luck? No problem. We understand that terrible things happen to people just like you all the time. But did you know there is a way out? Just sign right here and we'll provide an annuity based on your child's 'right to help' income. After all, what's good for you is good for them too!"
I think the idea has merit, but any good idea also has to stand up to criticism.
Your 401k comment gave me an idea for one potential tweak that would make a big difference. If there were a plan to collect a small yet reasonable tax over the course of, say, 10 years or so, to build up an initial pool to draw from, then it might be able to generate enough interest to sustain a continuous payout. Once payouts have started the initial tax might be relaxed or eliminated, though it would depend largely on population growth and how quickly the pool compounds.
I have had a different thought on this in the past; Every child born should have $10K put into an account in their name on the day they are born. It will gain interest and grow until they are 18, then they get the money. And as an adult after 21, they are taxed at some rate to pay back the initial 10K that will then be deposited into the account of some other new baby.