Proposed Legislation to Give California Newborns $500 Savings Accounts

California has proposed legislation that would provide $500 savings accounts for all babies born in the state. Here's an excerpt from an Associated Press article about it:

Under the bill, every child born in California after Jan. 1, 2008, would receive the money, regardless of their parents' income or immigration status. Recipients would repay the state's initial $500 investment once they turn 18.

The money may be used for three purposes: college or continuing education, a down payment on a home or a retirement account.

"This is the essence of equal opportunity. Every child, every person ought to get a head start," said Sen. Darrell Steinberg, D-Sacramento, who introduced the bill with Sen. Bob Dutton, R-Rancho Cucamonga.

About 566,000 children are expected to be born in California next year.
If families added $50 a month to the state's initial contribution, the savings account would grow to nearly $17,500 at 5 percent interest over 18 years. Steinberg said that would promote saving money in a culture that now is carrying record levels of debt and has the lowest savings rate since the Great Depression.

Here's an opposing view.

And here's my response to the person who wrote the opposing view:

Question for the person who posted this article, for this person who opposes the proposal to give California newborns $500 savings accounts:

If you had been born to a poor family, and if this law had been in effect when you were born, would you not have wanted this $500 savings account opened in your name?

If you're concerned that non-California taxpayers will reap the benefits of this law (a law that would be funded by California taxpayers), why not lobby for the law to be enacted in ALL states, as a Federal law? That would make more sense, and would go a long way towards providing equality for those children who, through no choice of their own are born into poor families and families with no investing savvy.