Economist Peter Schiff is criticizing the Trump administration’s latest proposal for the federal government to give newborns in the U.S. $1,000 to invest in the stock market.
What Happened: On Monday, Schiff called out the proposal on X, arguing that it is “unconstitutional” and “a bad idea,” saying that “rather than taking on more debt that those babies will grow up to repay, it's better to reduce deficit spending now, so they don't have to pay for it later.”
In a series of follow-up posts in response to replies on his original post, Schiff refers to this proposal as a “gimmick,” one that takes focus away from the greater harm being done to newborns with the “Big, Beautiful Bill.”
When questioned on the constitutionality of the proposal, Schiff says, “The Constitution doesn’t authorize the Federal government to set up and fund investment accounts for newborns.” He, however, acknowledges that “if state governments want to do this, nothing in the Constitution prohibits it.”
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Why It Matters: Schiff has been a vocal critic of President Donald Trump’s “One Big, Beautiful Bill,” recently having backed Elon Musk’s takedown of the bill as a “disgusting abomination.”
“I’m so glad Elon is willing to call out the hypocrisy in the Republican party. He is a man of principle. The Big, Beautiful Bill is a fraud,” he said.
He’s far from the only one, with Craig Shapiro, a macro strategist at The Bear Traps Report, recently saying that the bill will “explode the deficit while enriching the highest decile of Americans at the expense of the lowest decile.”
When it comes to the “Baby Bond” proposal, however, there have been certain pockets of support, with Democratic Senator, Sen. Dick Durbin (D-IL) offering faint praise by saying “Even a stopped watch is right twice a day,” even as he criticized the rest of the GOP’s proposal.
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