What are Social Impact Bonds?
A social impact bond (SIB) is a contract with the public sector or governing authority, whereby it pays for better social outcomes in certain areas and passes on the part of the savings achieved to investors. A social impact bond is not a bond, per se, since repayment and return on investment are contingent upon the achievement of desired social outcomes; if the objectives are not achieved, investors receive neither a return nor repayment of principal. SIBs derive their name from the fact that their investors are typically those who are interested in not just the financial return on their investment, but also in its social impact. The first social impact bond was issued in 2010 by Social Finance Ltd. So far, social impact bonds have only been issued by the public sector, but in theory, private sector organizations can also issue them.
(-Investopedia)
What Can We Do?
START FRESH INVESTMENT BOND (SFIB)
Let's invest in the future of our people. The same people that pour their life, energy, time, and money into this country. We need to invest at the beginning and not afterwards when it's too late. Preparation and prevention is key.
So I propose the U.S. government open and give every citizen a $10,000 bond at birth that matures at 18, 21, or 25 years. The bond rate should be no less than 5% to mimic stock market. The objective of these bonds would be to financially free up young adults as they enter adulthood, college, or working world so they are not pressured and limited by financial hardships or limitations. (A) The U.S. Treasury should hold these bonds in and split among the a 1000-2000 community banks. Or (B) the U.S. Treasury should allocate the funds to the states and then the states divide the funds among the community banks.
With a SFIB at adulthood, a U.S citizen will have the option to follow his our her desired for higher education, travel, saving, debt elimination, entrepreneurship, or whatever, with an investment from their country, not tethered to current socioeconomic status.
SFIB will reduce financial stress of parents and caretakers, colleges, and tax payers. More importantly, it provides opportunities to those who's main barrier is money.
How Will We Pay For It?
The answer, Woodrow Wilson.
The $100,000 note featuring a portrait of Woodrow Wilson, was actually a gold certificate that was never circulated or issued for public use. The Bureau of Engraving and Printing created them during the Great Depression in 1934, for conducting official transactions between Federal Reserve banks. Only 42,000 of the $100,000 bills were ever printed. (- Investopedia)
I propose we do something similar (if not, the same). I originally stated $10k bonds, but since there are less than 3,000 community banks in America, there would be more notes than banks. Since there are already 42,000 Woodrow Wilson ($100k) notes at the Fed ($4,200,000,000), we can use those as the base collateral. Before you get up in arms about paying for this, remember Congress spent $3 Trillion on Corona virus within 2 months and only $500 billion went directly to citizens. I'm no mathematician, but that's almost $10k per. citizen already.
If Woodrow Wilson notes can't be used for whatever reason, we can engrave a new certificate either with Dr. King, Andrew Yang, or any promoter of universal basis income (UBI) or an equal financial start.