OPINION: Each Person Should Be a Millionaire
I'll let you guys in on a secret of mine: I think every person should become a millionaire at some point in their lifetime. I actually don't think it's that difficult to do as a society. Here's how I see it:
The government would issue $5,000 in a trust fund for each newborn, and we raised the minimum wage to a point that reflected the wage needed to live (i.e. living wage). Then, each person would be able to make small monthly deposits into their trust account when they are young: between ages 16-30. These are primarily the years in which most people work minimum wage jobs; as they get older they earn a higher wage.
Compound interest would begin the day they are born, and at some point in their early 30s they wouldn't need to contribute anything else to their trust because the amount that is earned from compound interest each year will be greater than the amount they can contribute. At this point, we just need to let compound interest work it's magic and allow a reasonable growth rate of 9-10%. (Note: This is the average annual growth rate of the stock market.)
By the time that most people reach the age of 55-60, their trust account will have $1 million in it. Those who can contribute more than others will see their accounts grow faster, so they will reach $1 million likely in their 30s or 40s; however, this method ensures that even a person making minimum wage will have $1 million in their lifetime.
And to ensure that the money is safely able to compound, its access would be restricted until it reaches $1 million. At this point, I would instruct each person that if they decide to leave it in the account longer, it's value will continue to grow at a progressively accelerating pace (meaning it grows faster and faster each year). So if they decide to leave it in for just 5-7 more years, it'll likely grow to $2 million.
And the absolutely best part: the money is tax free. No taxes on the money that is withdrawn from the trust account, and no money should be taken from the amount that is deposited into the account. Why shouldn't these people pay taxes? Because the people who need this money the most are those who earn the lowest income, and they don't need to be paying any more in taxes.
Truth be told, I think it's a pretty simple idea. I appreciate you all indulging me for just a moment. Since this doesn't currently exist, I just want to generally recommend that everyone start saving and investing their money as soon as possible in order to see the best results.