President Donald Trump (R) wants to set up financial accounts for children, initially funded with $1,000 of government money—taxpayer money redistributed. Wall Street wants in on the action. This bit is what raises my question:

Participating financial firms likely would earn lower management fees than their typical rates, but the program would be a potential gateway to acquire millions of new customers the companies hope will stay with them into adulthood and grow their accounts over time.

And this:

One priority for the government is to offer low-fee investment options.

Who will pay those fees? Would they be one-time set up fees, or would they be ongoing account maintenance fees? If the latter, and if they’re paid by the account holder, which is the usual case, even low fees would sap the accounts over time just as thoroughly as even low management fees on mutual funds do.

On the other hand, there’s this:

The Treasury Department is considering choosing an exchange-traded fund or working with firms to potentially create a market-tracking fund with no fees, one of the people familiar with the matter said.

That’s the firms betting on the account holders becoming future broader account holders/investors with those firms, and that would be a good bet.

No-fee (as most brokerages do for DIY investors) or (very) low fee, these accounts would seem like a good idea—give children a leg up on investing and thereby give them a long-term level of game skin for their betterment and their better judgment and interest in our economy.

Except.

How strong would that skin be if handed to the children (even if managed with the assistance of, or by, their parents)? Possibly, the benefits would outweigh that risks, given the size of the proposed seed money.

The far greater danger, though, is the Progressive-Democratic Party, with its penchant for Know Better Government intrusions, returning to power. At that point, the accounts will become permanently and annually government funded in ever increasing amounts—so long as the accounts invest in Party-approved vehicles. See, for instance, Party’s demand for continued (and increasing) subsidies for their unaffordable Affordable Care Act policies.