Socialism sounds pretty good when you’re broke, naive, and hopeless.

That’s why, like the name or not, Trump Accounts (which are going live tomorrow) are a rare policy win for American kids.

I’ve supported the idea for these accounts since billionaire investor Brad Gerstner proposed them in 2020. The idea was simple: a $1,000 starter investment account for every child at birth. Money invested to help grow great American companies - win, win.

Back then they were the less politicized “Invest America Accounts.” I wish that was still the name. A big chunk of the country will probably skip these accounts because our President really likes to put his name on things.

Now, I suspect your kids are already fortunate enough to have a loving, devoted father (apologies to the ~two women that read this newsletter) who will give them a giant leg up on life. You probably teach them about saving, investing, risk and capitalism.

I do the same. I have my kids pick stocks with their own money. They have Evergreen brokerage accounts in their names. Because playing poker with worthless chips is lame. Ever tried it on vacation? Snoozefest.

Sometimes we need to touch the stove.

Kids need real money on the line to feel the wins and losses, to internalize the lessons and (eventually) understand the power of compounding.

Most kids aren’t so lucky. They’ll somehow need to learn personal finance and how to invest on their own when they’re much older and the stakes are much higher.

But that’s a tall order if they are buried in debt with stagnant wages and can’t afford proper housing to start a family. If you don’t have superior will and a lot of personal agency (aka a kick-ass American attitude), that might feel impossible.

You might start to think the system is rigged. That you’re a victim who got hosed by “The Boomers”.

That toxic thinking is the catalyst behind the alarming uptick in extreme ideologies from our youth.

No wonder so many of them are glomming on to pseudo-intellectual American apologists who breathlessly tell them “it’s not their fault”. That they, despite being fully-functioning adults, are entitled to a bunch of free stuff.

I’m not loving this trend of 30-year-old socialists winning elections (See Colorado / New York last week).

I don’t imagine the new crop of socialist candidates will be celebrating our country this weekend like you and me. No hotdogs, no sparklers, no tallboys, no Toby Keith, Neil Diamond (America!) or Bruce Springsteen for Marxists.

I’m not really a country music guy, but I saw Toby Keith play with the Boston Pops for the 4th in 2010. Highly recommended bucket list item: Symphony + fireworks over the Charles River.

These socialists aren’t proud Americans, they seem to loathe it and everything it stands for. They support fun policies such as:

Basically, they want to burn it down.

I think the technical term for people that subscribe to that ideology is….nut-job.

There are things to improve, but if you don’t start from the baseline view that this is a great country, then you need to A) travel more and B) pick up a history book.

The people flirting with communism don’t have enough skin in this game. “Nothing to lose, so screw it” is their general vibe.

Like it or not, the American Dream is built on ownership.

If you don’t own productive assets you are going to get steamrolled.

Wages alone aren’t going to cut it for the overwhelming majority of the country.

This is especially true with spiraling government debt and absurd $2 trillion fiscal deficits.

The government is going to keep printing money to deflate away the $39 trillion debt. It’s pretty clear that austerity measures aren’t in the cards - the overspending train has left the station. Growth and inflation are the only politically realistic exits to avoid a debt or entitlement crisis.

The politically easy way out is by debasing the currency the debt is denominated in. Aka a melting ice cube. Big borrowers LOVE inflation as you can gradually payback loans with “less expensive” money.

Therefore, you need compounding assets to outpace inflation and make it in this country. You can’t vote your way to prosperity.

Longer lifespans will make this even harder for people with minimal savings. Most won’t earn enough to fund a respectable retirement without a lot of growth from investment accounts.

To be clear, I’m not suggesting Trump Accounts are a miracle that will solve all these issues.

Thankfully, extreme socialist views will be laughed out of the room at a national level. However, we can’t dismiss the trend outright.

We cannot afford our children feeling detached from the engines of wealth and the principles that shaped this country.

Employers can contribute to these accounts, similar to how they support 401(k) plans.

Several major companies have already signed up:

The ultra-wealthy love this idea too.

I think we have enough billionaire-funded rocket companies at this point. It might be time for some traditional, good-old give-the-money-to-people-who-need-it philanthropy.

These accounts are a direct way to give back to children, improve their lives and help ensure our American ideals.

Michael Dell and Ray Dalio have already donated. Dell is an entrepreneurial genius and understands the challenges of effective giving. There is no better signal in the quality of this idea than his whopping $6.25 billion donation to help kickstart the accounts in lower-income zip codes.

This man is an American hero.

These accounts are gifts to impoverished youth that could help lift them out of poverty while teaching them about American industry and ingenuity.

And eventually, once the compounding takes hold, they’ll see that small steps, dogged determination, and time can lead to prosperity. They'll feel the tangible benefits of long-term investing.

These accounts will give our youth ownership in the economy and a stake in its future.

And these children will LOVE their country for it.

It’s easy to forget The American experiment was built on civil liberty, ownership and personal responsibility.

The Fourth is a great excuse to remember that.

Happy 250th birthday to a nation of dreamers and investors.

Brad Johnson

Evergreen Capital

P.S. Apologies. This one got sappy… BTW, I hope you hear this song tomorrow: