To be an American is to win life’s lottery. We live in the greatest nation in the world, with tremendous freedoms and unparalleled opportunities. We have the ability to chase the American dream from childhood through retirement.
The United States boasts the world’s strongest economy, and though we make up less than 5% of the global population, we generate and bring in over 20% of the world’s income and are the leader in global trade. Over the last 200 years, American capitalism has given birth to a boom in higher-paying and less dangerous jobs, better health outcomes, more time for education and hobbies, and stronger family units. Thanks to strong capital markets and household investments, we can contribute to our communities, society, and economy, improve our overall quality of life, and seek financial realities better than the ones from which we came.
However, wealth and opportunity gaps persist and have even worsened in some respects. These gaps prevent millions of Americans from taking advantage of the capital markets that could help build household wealth.
We know that America’s economic engine is working, but not everyone feels connected to its value and the ways it can benefit them. Skepticism of capitalism is on the rise, and in some corners, thanks to progressives pushing socialist policies with empty promises, it’s even considered a dirty word. Socialists such as Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) have gripped members of Generation Z and sold the lies of socialism.
Capitalism is the gateway to opportunity, but too many youth are disconnected from this fuel that drives our nation’s prosperity. It is incumbent on policymakers to find an innovative way to share the financial and cultural benefits of capitalism with every child born in this country. When people don’t have the resources and education to take advantage of our capital markets, they don’t feel that the system is working on their behalf.
Helping our youth realize the power of compounding interest could change their lives. Research from the Milken Institute demonstrates that people, young and old, lack the basic financial literacy necessary to achieve financial well-being, and there has been little progress made in this area in recent years. Milken’s study indicates that only 57% of adults are classified as financially literate, fewer than in other countries of similar economic status. This knowledge gap handicaps young adults when it comes to housing, education, and other expensive life decisions. If we can demonstrate to our next generation the benefits of investing and financial health, we can put them on a path toward prosperity.
Alongside President Donald Trump, my House Ways and Means Committee Republican colleagues, and Sen. Ted Cruz (R-TX), I am advancing a legislative proposal that would teach the lesson of compounding interest to America’s young people in a lasting, meaningful way. I have been grateful to work closely with Invest America stakeholders on this bold initiative that would illustrate the power of capitalism by creating private savings accounts for every child born in America.
Starting on Jan. 1, 2026, parents of any child under eight years old could open an account for their child. The federal government would seed accounts for newborns born in 2025 through 2028 with an initial $1,000 to unlock the potential of compounding interest, and therefore opportunity, for America’s children. In addition to an initial federal deposit, business and philanthropic leaders from across the country have expressed a willingness to step up and make contributions, further investing in our country’s future. These investment accounts would be eligible to receive contributions from parents, relatives, employers, nonprofit organizations, and government entities.
YOUNG AMERICANS FEEL BETTER ABOUT THEIR FINANCES DESPITE LOW APPROVAL OF TRUMP’S ECONOMY
These Money Accounts for Growth and Advancement could help every young person visualize how capitalism works. Youth could even follow their investments on an app and watch interest compound, personalizing the benefits of investing. As the costs of the purchases that help people get ahead continue to rise, including higher education, apprenticeship programs, and housing, these investments could be the key to opening doors of opportunity. In fact, if this program had started 30 years ago, a 29-year-old today might have $250,000 in his or her account.
Let’s unite the country around compound interest and financial opportunity. It’s past time that lawmakers engage the next generation on the importance of capitalism and the ways it can empower those who work hard, responsibly steward financial resources, and invest well. MAGA accounts would allow each and every American child to participate in capitalism and experience the power of its opportunities.
Blake Moore represents Utah’s 1st Congressional District in the U.S. House of Representatives.