Idea to Make Society Wealthier: Less Taxes and Less Poverty

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Right now poor people breed more than rich people. The wealthier you are the less children you have because of the opportunity cost of raising the child. This is bad for the health of the gene pool because poor people are 97% likely to stay poor. With more poor there is more crime, more civil unrest, higher health costs and welfare costs and retirement costs.

I have an idea though - what if we can lower one of those costs that the tax payer has to pay and lower it in such a way that it incentives poor people to have less children?

Let's focus on retirement costs. Having society pay a pension to people is a huge tax burden, so if we can remove that then we are making serious financial gains for society. How much does it cost to retire? Well $1,000,000 should be more than enough for anyone.

So here's what policy we can implement: for each child born the parent(s) must deposit $5,000 in a special index fund. If the parents don't deposit it within 28 days of the baby being born then the government deposits it for them and gives them a bill of $5,000 with the interest rate pegged to inflation which they must pay off.

$5,000 is not a significant amount of money for the middle-class and nothing to the upper-class, so this amount wouldn't disincentive them from having more children. It's also affordable for the working class if they plan. On the other hand $5,000 is a lot for a poor person so they would stop breeding like rabbits (they would abort, for example).

Let's calculate the value of this index fund. The stock market has had an annual return of about 11.5% over the last twenty years. Subtract 0.5% for index fund fees and 3.0% for inflation (3% inflation is the target rate of most central banks in the world). That makes it an 8.0% return.

Doing the math, after 65 years (retirement age) that $5,000 would have turned into $905,844.93, thus ensuring that the kid's retirement is taken care of, while preventing the dregs of society from overbreeding.