This one is from Republican candidate for Ohio Governor, Vivek Ramaswamy:
Instead of viewing AI as competition, the next generation should own a stake in improving America’s economic productivity. If every child has $10,000 invested in the S&P 500, every one of them would be a millionaire well before retirement.
From where would that initial $10k stake come? If it’s handed to “every child” from outside (vis., government), that child would have no skin in that game, and he would not find himself at pains to protect that stake by actively participating in improving our economic productivity—for instance, by getting a job and working to his employer’s goals or starting his own business and working to make it grow and prosper. The money would just be found money of no personal value.
On top of that, Ramaswamy did not address another aspect of this “plan:” what does he think the value would be of those millions of dollars in the child’s end game of retirement after a long and fruitful life of doing…something? An increase of all that nominal wealth without a concomitant increase in the supply of goods and services, will simply drive up the cost of those goods and services, which is otherwise known as inflation. Those millions of dollars may well wind up with the purchasing value of today’s thousands of dollars.
This is a plan that sounds good in its base outline, but it badly wants cold, clear-eyed fleshing out with facts; hard logic; and clear, publicly measurable steps to be taken. Especially, but not exclusively, the steps needed to keep productivity growth up with S&P 500 growth in an environment where today’s and lots of prior year’s S&P 500 growth—its price to earnings ratio—has been outstripping goods and services—productivity–growth.