Despite the loud busking music, arcade lights and swarms of people, it was hard to be distracted from the corner street stall serving steaming cupfuls of tteokbokki — a medley of rice cake and fish cake covered in a concoction of hot sweet sauce. I gulped when I felt my friend tugging on the sleeve of my jacket, anticipating that he wanted to try it. After all, I promised to treat him out if he visited me in Korea over winter break.
The cups of tteokbokki, garnished with sesame leaves and tempura, was a high-end variant of the street food, nothing like the kind from my childhood. Its price of 3,500 Korean won was also nothing like I recalled, either, simply charged more for being sold on a busy street. If I denied the purchase, I could console my friend and brother by purchasing more substantial meals elsewhere. Or we could spend on overpriced food now to indulge in the immediate gratification of a convenient but ephemeral snack.
At every seemingly inconsequential expenditure, I weigh the pros and cons of possible purchases as if I held my entire fate in my hands. To be generously hospitable, but recklessly drain the travel allowance we needed to stretch across two weeks? Or to be budgetarily shrewd, but possibly risk being classified as stingy? That is the question, and a calculus I so dearly detest.
Unable to secure subsequent employment and saddled by alimony complications, there was no room in my dad’s household to be embarrassed by austerity or scraping for crumbs. Ever since I was taught to dilute shampoo with water, I’ve revised my formula to reduce irritation to the eye. Every visit to a fast-food chain included asking for a sheet of discount coupons — the parameters of all future menu choice — and a past receipt containing the code of a completed survey to redeem for a free cheeseburger. Exploiting combinations of multiple promotions to maximize savings at such establishments felt as thrilling as cracking war cryptography, critical for minimizing cash casualties.
However, while disciplined restriction of expenses may be virtuous in private, at outings, even those amongst friends, spending less — when it comes to status — paradoxically costs more. In Asian family-style eating customs, a dish ordered is typically available to everyone, and the total bill, regardless of what you did or did not consume, is divided evenly. Too ashamed to ask for myself to be excluded from paying for dishes I did not order or partake in, I’ve opted out of invitations to meals altogether. I am wary even of meals where the inviting host has offered to treat everyone, fearful that if I only attended “free meals” I would be pinned as a parasite.
Although I can now conduct t-tests to extract correlations between multiple variables, calculate marginal propensities to import and assess whether a developing country elsewhere in the world is at risk of becoming stuck in the middle-income trap, my day-to-day decisions still revolve around elementary arithmetic. I feel haunted, cursed by the compulsion to diligently subtract pennies from purchases hoping it will eventually pile up into a mere dollar, as if the slightest misjudgment in a single buy would tip my family’s balance sheet into irrecoverable poverty.
Will I ever stop stressing over overspending?
I’m not sure I ever will.
But I do know this. As I handed over 7,000 won in exchange for two cups of tteokbokki to share amongst the three of us — my friend, my brother and myself — I am reminded that even if we are not swimming in splendor, we can still uphold our dignity through the generosity of sharing. Restricting one’s conscience only around ruminating which roads will lead to riches risks blindness toward rarer wealth: friends and family who do not measure one’s worth based on their net worth. Maybe one day, such rigorous monitoring of financial activity won’t be necessary, but even if not, this is still enough.
OREFIELD, Pa. — From his office in an old barn on a turkey farm, David Jaindl watches a towering flat-screen TV with video feeds from the hatchery to the processing room, where the birds are butchered. Mr. Jaindl is a third-generation farmer in Pennsylvania’s Lehigh Valley. His turkeys are sold at Whole Foods and served at the White House on Thanksgiving.
But there is more to Mr. Jaindl’s business than turkeys. For decades, he has been involved in developing land into offices, medical facilities and subdivisions, as the area in and around the Lehigh Valley has evolved from its agricultural and manufacturing roots to also become a health care and higher education hub.
Now Mr. Jaindl is taking part in a new shift. Huge warehouses are sprouting up like mushrooms along local highways, on country roads and in farm fields. The boom is being driven, in large part, by the astonishing growth of Amazon and other e-commerce retailers and the area’s proximity to New York City, the nation’s largest concentration of online shoppers, roughly 80 miles away.
“They are certainly good for our area,” said Mr. Jaindl, who is developing land for several new warehouses. “They add a nice tax base and good employment.”
promotional video posted on the economic development agency’s website, there are images of welders, builders and aerial footage of the former Bethlehem Steel plant, which closed in the 1990s. The narrator touts the Lehigh Valley’s ethos as the home of “makers” and “dreamers.”
“We know the value of an honest day’s work,” the narrator intones. “We practically wrote the book on it.”
Jason Arias found an honest day’s work in the Lehigh Valley’s warehouses, but he also found the physical strain too difficult to bear.
Mr. Arias moved to the area from Puerto Rico 20 years ago to take a job in a manufacturing plant. After being laid off in 2010, Mr. Arias found a job packing and scanning boxes at an Amazon warehouse. The job soon started to take a toll — the constant lifting of boxes, the bending and walking.
“Manufacturing is easy,” he said. “Everything was brought to you on pallets pushed by machines. The heaviest thing you lift is a box of screws.”
One day, walking down stairs in the warehouse, Mr. Arias, 44, missed a step and felt something pop in his hip as he landed awkwardly. It was torn cartilage. At the time, Mr. Arias was making $13 an hour. (Today, Amazon pays an hourly minimum of $15.)
In 2012, Mr. Arias left Amazon and went to a warehouse operated by a food distributor. After a few years, he injured his shoulder on the job and needed surgery.
“Every time I went home I was completely beat up,” said Mr. Arias, who now drives a truck for UPS, a unionized job which he likes.
Dr. Amato, the regional planning official, is a chiropractor whose patients include distribution workers. Manufacturing work is difficult, but the repetitive nature of working in a warehouse is unsustainable, he said.
“If you take a coat hanger and bend it back and forth 50 times, it will break,” he said. “If you are lifting 25-pound boxes multiple times per hour, eventually things start to break down.”
Dennis Hower, the president of the local Teamsters union, which represents drivers for UPS and other companies in the Lehigh Valley, said he was happy that the e-commerce boom was resulting in new jobs. At the same time, he’s reminded by the empty storefronts everywhere that other jobs are being destroyed.
“Every day you open up the newspaper and see another retail store going out of business,” he said.
Not everyone can handle the physicality of warehouse work or has the temperament to drive a truck for 10 hours a day. In fact, many distribution companies are having a hard time finding enough local workers to fill their openings and have had to bus employees in from out of state, Mr. Hower said.
“You can always find someone somewhere who is willing to work for whatever you are going to pay them,” he said.
A slave’s final resting place
Two years ago, there were no warehouses near Lara Thomas’s home in Shoemakersville, Pa., a town of 1,400 people west of the Lehigh Valley. Today, five of them are within walking distance.
“It hurts my heart,” said Ms. Thomas. “This is a small community.”
A local history buff, Ms. Thomas is a member of a group of volunteers who regularly clean up old, dilapidated cemeteries in the area, including one in Maxatawny that is about two miles from her church.
The cemetery, under a grove of trees next to a wide-open field, is the final resting place of George L. Kemp, a farmer and a captain in the Revolutionary War. Last summer, the warehouse developer Duke Realty, which is based in Indianapolis, argued in county court that it could find no living relatives of Mr. Kemp and proposed moving the graves to another location. A “logistics park” is planned on the property.
Meredith Goldey, who is a Kemp descendant, was not impressed with Duke’s due diligence. “They didn’t look very hard.”
Ms. Goldey, other descendants and Ms. Thomas pored through old property and probate records and found Mr. Kemp’s will.
The documents stipulated that a woman enslaved by Mr. Kemp, identified only as Hannah, would receive a proper burial. While there is no visible marker for Hannah in the cemetery, the captain’s will strongly suggests she is buried alongside the rest of the family.
“This is not the Deep South,” Ms. Thomas said. “It is almost unheard-of for a family to own a slave in eastern Pennsylvania in the early 19th century and then to have her buried with them.”
Several descendants of Mr. Kemp filed a lawsuit against Duke Realty seeking to protect the cemetery. A judge has ordered the two sides to come up with a solution by next month. A spokesman for Duke Realty said in an email that the company “is optimistic that the parties will reach an amicable settlement in the near future.”
Ms. Thomas worries that if the bodies are exhumed and interred in another location, they will not be able to locate Hannah’s remains and they will be buried under the warehouse.
Chad Kalepa Baybayan, a revered Hawaiian seafarer who was a torchbearer for the art of “wayfinding,” which ancestral Polynesian sailors used to navigate the Pacific Ocean by studying the stars, trade winds and flight patterns of birds,died on April 8 at a friend’s home in Seattle. He was 64.
His daughter Kala Tanaka said the cause was a heart attack. He suffered from diabetes and had had a quadruple bypass over a year ago.
Many centuries ago, oceanic tribes sailed the waters between the islands and atolls of Polynesia in double-hulled canoes. They plotted their course by consulting the directions concealed within sunrises and sunsets, ocean swells, the behaviors of fish and the reflections of land in clouds. As Polynesia was colonized and modernized, the secrets of celestial navigation were nearly forgotten.
Mr. Baybayan (pronounced “bay-BAY-an”) was a teenager when he joined the crew of the fabled Hokule’a (“Star of Gladness”), a voyaging canoe in which he learned to become a wayfinder under the tutelage of the Micronesian master navigator Mau Piailug.
At the time, traditional Hawaiian culture was in peril. Usage of the native language was declining, sacred lands were being desecrated and fewer ceremonies were being held. In 1973 the Polynesian Voyaging Society was formed in hopes of preserving the region’s seafaring heritage, and it built Hokule’a, a replica of an ancient deep-sea voyaging canoe.
In 1976, the vessel embarked on a historic trip from Hawaii to Tahiti without the aid of navigational tools, in what was intended as a display of wayfinding’s technical sophistication. The trip, which was led by Mr. Piailug and documented by National Geographic, also sought to disprove theories that Polynesia was settled accidentally by hapless sailors lost in an aimless drift. (Mr. Baybayan was too young to go on that famous voyage, although he served ceremonial drinks made from awa root to his crewmates before their departure.)
When Hokule’a finally made landfall in Tahiti, thousands of people had gathered on shore to greet the canoe, and the occasion was declared an island-wide celebration. The voyage’s success galvanized a revival of native culture, known as the Hawaiian renaissance, that included a celebration of slack-key guitar music and the hula.
told National Geographic in 2014, “I will never be a ‘master’ because there will always be more to learn.”
“What it truly does is sharpen the human mind, intellect and ability to decipher codes in the environment,” he added. “It’s also incredibly rewarding to navigate and make a distant landfall. For me, it’s the most euphoric feeling that I have ever felt.”
Pwo. The ritual commenced with the blowing of a conch shell, and Mr. Baybayan was given a bracelet of stinging coral to mark his new status. In 2014, he helped lead Hokule’a on a three-year circumnavigation of the globe.
In his late 30s, while raising a family and juggling jobs as a hotel porter and a ramp agent for United Airlines, Mr. Baybayan decided to pursue a higher education. He graduated with a B.A. in Hawaiian studies from the University of Hawaii at Hilo in 1997. He then earned a master’s degree in education from Heritage University in Toppenish, Wash.
Mr. Baybayan became an educator at the ‘Imiloa Astronomy Center, using its planetarium to teach visitors about celestial navigation. He also traveled to classrooms across the country to talk about wayfinding with the aid of an interactive star compass floor mat. In 2013, he gave a TEDx Talk that recounted the history of Hokule’a.
“There are only a few people in the world who can really navigate properly, and Kalepa was one of them,” Nainoa Thompson, a fellow Hokule’a master navigator, said in a phone interview. “But where Kalepa separates himself is how far he took things with education. He broke the rules.
said in an interview in 2000. “I knew that if there was anything in my life that I wanted to do it was sail on her.”
His daughter elaborated: “For him, seeing Hokule’a was like seeing this thing he’d only heard about in stories and history books, but then there it was and it was real. It wasn’t just a story anymore.”
When Mr. Baybayan first joined the crew, he was charged with tasks like washing and scrubbing the vessel. He began learning the techniques of wayfinding in his 20s, and he went on to guide voyages that took the canoe to Cape Town, Nova Scotia, Cuba and New York.
supporter of the construction of a $1.4 billion telescope on the dormant volcano Mauna Kea, a sacred site considered the resting place of gods. Called the Thirty Meter Telescope, it is expected to be one of the most powerful telescopes ever made, but activists have protested its construction for years.
“I’ve heard the comment that the protesters want to be on the right side of history,” Mr. Baybayan told The Associated Press in 2019. “I want to be on the right side of humanity. I want to be on the right side of enlightenment.”
In addition to his daughter Kala, Mr. Baybayan is survived by his wife, Audrey (Kaide) Baybayan; another daughter, Pukanala Llanes; a son, Aukai Baybayan; his mother, Lillian Suter; two brothers, Clayton and Lyle Baybayan; a sister, Lisa Baybayan, who now goes by Sister Ann Marie; a half brother, Theodore Suter; and six grandchildren.
Last month, Mr. Baybayan was in Seattle with his wife to visit some of his grandchildren when he collapsed suddenly one evening.
The night after he died, a group of his crewmates, including Mr. Thompson, gathered aboard Hokule’a for a moonlight passage in his memory. Mr. Thompson, who had studied celestial navigation alongside Mr. Baybayan as a young man, looked toward the stars as he honored his fellow wayfinder.
“I think Kalepa has gone to where the spirits go,” Mr. Thompson said. “Now he is up there with our ancestors who dwell in the black of the night.”
The State University of New York and the City University of New York plan to require that all students attending in-person instruction in the fall be fully vaccinated against Covid-19, Gov. Andrew M. Cuomo of New York said on Monday.
He said the requirement would be contingent on the federal government granting full approval to the vaccines now in use. So far, three vaccines have been given emergency use authorization in the United States, but none have full approval yet.
Pfizer and BioNTech jointly applied for full approval for their vaccine last week, and Moderna has said it plans to apply sometime in May. The approval process can take months.
The New York colleges and universities join a growing list of higher-education institutions that will require students to be vaccinated in the fall. In April, the University of California and California State University announced plans to require all students, faculty and staff on their campuses be vaccinated, once a vaccine receives full approval. That policy will affect more than one million people associated with the sprawling state campuses across California.
tracker maintained by The Chronicle of Higher Education, at least 319 campuses have announced vaccination mandates of some form for the fall.
At the end of April, the University of Maryland system announced that it would require students and staff to be vaccinated. The chancellor, Jay A. Perman, said the university was doing so to prepare for “more infectious, more harmful variants that we think could be circulating on our campuses come fall.”
Colleges and universities have been among the more closely watched institutions during the pandemic, in part because many students travel long distances to attend them and could unknowingly spur outbreaks in the surrounding communities. Iowa City, for example, which is home to the University of Iowa, experienced a surge when students returned to campus in the fall of 2020.
At the time, The New York Times reviewed 203 counties in the United States where students make up at least 10 percent of the population, and found that about half were experiencing significant increases in infections.
Richard Cordray, a close ally of Senator Elizabeth Warren who served as the first director of the federal Consumer Financial Protection Bureau during the Obama years, has been selected as the new head of federal student aid in the Biden administration, a post that will put him at the center of the swirling debate over forgiving student debt.
The issue is a tricky one for President Biden. Though he has endorsed canceling up to $10,000 per borrower through legislation, Mr. Biden has been pressured by some Democrats to forgive much more, and to sign an executive order making it happen if Congress fails to act.
But with his new position within the federal Education Department, the primary lender for higher education, Mr. Cordray might be able to relieve the president of that burden by canceling student debt administratively. Democratic leaders are pushing for up to $50,000 in debt relief.
Mr. Cordray is a former Ohio attorney general who worked alongside Ms. Warren on financial issues before her election to the Senate. He headed the consumer protection bureau from 2012 to 2017, leaving in the first year of the Trump administration to make a failed bid for governor of Ohio.
a five-time “Jeopardy!” champion, has also been a vocal critic of for-profit colleges. “I hate how these hollowed-out businesses and subpar colleges are cheating consumers, employees and whole communities,” he wrote in a guest essay in The Plain Dealer, Ohio’s largest newspaper.
the agency sued Navient, one of the Education Department’s largest student loan servicers, for errors and omissions that Mr. Cordray said improperly added billions of dollars to borrowers’ tabs.
The lawsuit is ongoing, and six state attorneys general have filed similar cases. The lawsuits describe routine mistakes and lapses in oversight that over time added up to systematic failures, eerily similar to the mortgage servicing industry’s bungling of borrower accounts and property foreclosures during the 2008 recession.
extensive errors and obstacles in the department’s Public Service Loan Forgiveness program, which is intended to forgive the debts of teachers, military members, nonprofit workers and others in public-service careers.
The agency is also grappling with claims from hundreds of thousands of borrowers seeking relief through a program intended to eliminate the debts of people who were defrauded by schools that broke consumer protection laws.
Good morning and happy May. Is anyone else itching for a vacation, or just a chance to go … elsewhere? Good news: If you’re vaccinated, you could escape to Europe (and help boost its ailing tourism industry) as soon as this summer. Here’s what you need to know for the week ahead in business and tech news. — Charlotte Cowles
What’s Up? (April 25-May 1)
Plan No. 3
In his first address to Congress, President Biden detailed his American Families Plan, the third huge spending proposal that he has put forth in his 100 days in office. (The first was the $1.9 trillion stimulus package, signed into law in March, and the second was the American Jobs Plan, which focuses on infrastructure and has yet to pass Congress.) The latest proposal includes financing for universal prekindergarten, federal paid family leave, a permanent expanded child tax credit, subsidized child care for low- and middle-income families and free community college, among other initiatives. To pay for it, Mr. Biden wants to raise taxes on the rich. But most Republicans are opposed to tax increases and say the plan costs too much.
Up Goes the G.D.P.
More signs of life from the economy. The country’s first-quarter gross domestic product was up 6.4 percent, at an annualized rate, according to the Commerce Department. That’s almost back to its prepandemic high. Consumer spending is also on the rise, and some analysts believe that it could grow more than 9 percent this year — a record — as health and job conditions continue to improve, and travel and dining open back up.
great for the tech giants. Amazon’s latest quarterly report showed such blockbuster sales — up 44 percent from the previous year — that it beat even the most optimistic forecasts. Meanwhile, Apple’s profits grew 54 percent, mostly thanks to soaring iPhone sales. And Facebook nearly doubled its revenue during the same time period, while Twitter’s jumped 28 percent. (Both companies have barred former President Donald J. Trump and some extremist figures from posting on their platforms since January, but it clearly hasn’t hurt their bottom lines.)
What’s Next? (May 2-8)
A Is for Antitrust
The fight between Apple and Epic Games, which makes the popular video game Fortnite, heads to a federal court in California this week. The dispute began last year when Epic started selling Fortnite directly to its customers, violating its contract with Apple, which makes a 30 percent commission from App Store sales. Apple retaliated by kicking Fortnight off its store, and Epic fought back with a lawsuit. The case will be closely watched by other companies and lawmakers who have raised concerns about the App Store’s anti-competitive practices. Those include European regulators, who on Friday accused Apple of violating antitrust laws by imposing unfair rules and fees on rival music-streaming services.
Price Check in the Cereal Aisle
For the good of your fellow humans, don’t stockpile toilet paper. But bear in mind that it’s about to get more expensive. Companies like Procter & Gamble, General Mills and Kimberly-Clark are all raising prices on everyday necessities like tampons, toilet paper, diapers and cereal this year to make up for increasing costs of production and shipping. Those costs grew during the pandemic, particularly when supply chains were pinched, but companies were reluctant to pass them along to struggling consumers. Now that the economy is starting to stabilize, expect some price adjustments to make up for the past year.
Pack Your Bags
The travel industry is ready for takeoff — if you’re vaccinated, that is. The Centers for Disease Control and Prevention eased rules for cruise lines to resume operations, allowing some ships to set sail as soon as mid-July if they attest that 98 percent of the crew and 95 percent of passengers are fully vaccinated. And the European Union said that American tourists with vaccine certificates would be allowed to visit the bloc this summer, more than a year since it banned nonessential travel from most countries.
a long-anticipated ban on selling menthol cigarettes as well as all flavored cigars. (Possession will remain legal, however.) Amazon will increase pay between 50 cents and $3 an hour for half a million of its workers. And the Federal Reserve left interest rates near zero, playing down a rise in inflation and promising to continue support for the recovering economy.
First, consider student debt. Black Americans would gain disproportionately from student loan debt relief because they have larger average levels of higher education debt — $23,400 compared with $16,000 for white students. After accounting for the higher enrollment rate of white students, erasing student debt would result in an average Black gain in wealth of $8,424 and a white gain of $6,560. This translates into a reduction in the racial wealth gap of $1,864.
Today in Business
It would reduce the median gap of $54,700 by 3 percent and the mean gap of $280,300 by less than 1 percent.
Now, look at baby bonds. Under proposals embraced by Senator Cory Booker of New Jersey, and others, the bonds would provide each newborn infant with a trust account calibrated by the parents’ wealth. The goal of this project is to ensure that all Americans have a basic level of wealth. It isn’t designed to achieve complete racial wealth equality.
Specifically, the focus is on bringing every child closer to the national median level of net worth during their young adult years, when they have access to their personal accounts. This would mean, in turn, that the typical Black child would have an additional $33,333 in net worth by early adulthood.
If no white youths received any benefit from the program — which I do not recommend — “baby bonds” would move the ratio of median wealth from 14 percent to 74 percent. This is a substantial change. Even so, using the mean, or average, standard, it would leave 75 percent of the racial wealth gap unchanged. And, of course, under actual proposals, white children would receive baby bonds, too, so the shift in the gap would be much smaller.
In short, the notion that either student debt forgiveness or “baby bonds,” taken separately or in combination, will erase the racial wealth gap would be sheer mystification. Both policies are desirable for a number of reasons, but making extravagant claims about their impact on Black-white differences in net worth is disingenuous.
Worse still, celebrating these worthwhile programs in misleading ways diverts us from actually eradicating America’s racial gulf in wealth. Using average household wealth as a metric, that gap comes to a total of about $11 trillion.
— Brian Wieser, president of business intelligence at GroupM, on the leverage that Apple has over Facebook. Apple’s Tim Cook and Facebook’s Mark Zuckerberg have increasingly been at odds, most recently over a new privacy feature Apple launched this week that gives users more control over how apps (like Facebook’s) can track them.
Blockchain for the long term
Amid the recent cryptocurrency frenzy, many people wonder whether it’s time to buy Bitcoin or mint an NFT and whether it’s too late to get rich quick. The Ethiopian government is also getting into blockchain in a big way — but it’s thinking longer term. Today, along with the software company IOHK, it launched the world’s biggest blockchain deployment to date, the partners say, involving five million students.
“We believe blockchain offers a key opportunity to end digital exclusion and widen access to higher education and employment,” Getahun Mekuria, Ethiopia’s education minister, said in a statement about the project hosted on the IOHK-backed, open-source Cardano platform. The project, which DealBook is first to report, will give students tools, identifications and access to a unified records system that allows rural and indigent young people to have the same system as others.
What’s Cardano? Charles Hoskinson, IOHK’s co-founder, is among the founders of Ethereum, the second-most valuable cryptocurrency after Bitcoin. He left in 2014 with a mission to bolster crypto’s intellectual underpinnings and advance blockchain’s reach around the world, emphasizing things like security and governance. IOHK does work for institutions, backs academic research on blockchain and supports the Cardano platform, the issuer of the sixth-most valuable cryptocurrency, ADA. Cardano’s critics say the platform’s valuation is mystifying because development has been sluggish. Hoskinson described his approach to DealBook by citing the axiom “To go fast, go slow.”
The resistance to the resistance
Basecamp, a company that makes productivity software, said yesterday that it had “made some internal changes,” including a ban on talking about politics at work. “Every discussion remotely related to politics, advocacy or society at large quickly spins away from pleasant,” Jason Fried, Basecamp’s C.E.O., wrote in a blog post. “You shouldn’t have to wonder if staying out of it means you’re complicit, or wading into it means you’re a target.”
Braylon Dedmon was 3 days old when his mother, Talasheia, was offered $1,000 to open a college savings account in his name.
“I was like, ‘What?’” Ms. Dedmon recalled. Her skeptic’s antennae tingled. “I was a little scared.” Was this a scam?
It wasn’t. The offer was the beginning of a far-reaching research project begun in Oklahoma 14 years ago to study whether creating savings accounts for newborns would improve their graduation rates and their chances of going to college or trade school years later.
A few weeks after that initial conversation in 2007, the first statement arrived, showing $1,000 in Braylon’s name. “I was shocked,” said Ms. Dedmon, who now lives in Muskogee. “They started sending me statements every three months, and have been sending me them since then.”
Research about the Oklahoma project published this month by the Center for Social Development at Washington University in St. Louis, which created SEED OK, found that families that had been given accounts were more college-focused and contributed more of their own money than those that hadn’t been. And the effects are strongest among low-income families.
The approach breaks with most social policy programs created over the last half-century, which focus on income supplements. Child savings accounts, by contrast, concentrate on accumulating assets over the long term.
Michael Sherraden, the founder of the center at Washington University, said the idea was to give everyone a stake — an investment — in the future. Benefits of the program extend not just to bank accounts but also to behavior. Households with the seed money — especially poorer ones with parents who did not attend college — have greater expectations about higher education, are more optimistic, have lower rates of depression and save more.
College savings accounts known as 529 plans, which restrict withdrawals and grow tax-free, are used by only a tiny share of American households, mostly in the upper reaches of the income ladder.
Assets and the Poor,” has been pushing for savings accounts, also known as development accounts, that would automatically be opened for every child born in the United States. Canada, Israel, South Korea and Singapore have established versions of the idea.
“We need to create structures to enable people to accumulate assets over the long term,” Mr. Sherraden said. He argues that a universal program is necessary to sustain political support, but that it would nonetheless deliver disproportionate gains at the lower end of the economic spectrum.
“You will reduce the difference in the gap between the highest and lowest group over time,” he said.
In Maine, the private Harold Alfond Foundation started offering every child born in the state a $500 grant in 2009. Mr. Alfond, who founded the Dexter Shoe Company before selling it to Warren E. Buffett, had been writing a $500 check to each of his newborn grandchildren.
California has allocated $25 million for a similar program.
Rhode Island and Nevada are among the states that have established child development account programs. There are several other programs of varying scope and size across the United States, according to the nonprofit group Prosperity Now. Several programs include incentives and subsidies for lower-income families, which are disproportionately Black and Latino.
Automatic enrollment in a saving program, with the ability to opt out, turns out to have a much higher participation rate than relying on individuals to take the initiative. In the first years of the Maine program, when families had to open accounts themselves, participation never rose above 50 percent. In 2013, the Alfond Foundation switched to automatic enrollment, and since then, pretty much every newborn in the state has gotten an account.
William Elliott III, a professor of social work at the University of Michigan and a co-author of “Making Education Work for the Poor,” said knowledge about how to administer savings accounts and their impact had jumped over the last decade.
“It’s one of the best delivery systems” to help low-income children build assets and direct them toward college, Mr. Elliott said. He added that there was more rigorous data on the positive impact of child savings accounts than there was on student loans, government Pell grants and free college.
“A savings account for a low-income kid means a lot more to them than it does for a wealthy kid,” Mr. Elliott said, and establishing it early can transform expectations about the future.
Kandynace Boyd, who lives in Oklahoma City, hasn’t been able to contribute any additional money to her son Manuel’s account. She works part time in an acute care facility and is struggling to keep up with bills. But she said Manuel, 13, was already talking about going to culinary school.
“He’s got nearly $2,000 in it,” she said of the account. “I wish I could do it for my other two kids.”
WASHINGTON — President Biden outlined a vast expansion of federal spending on Friday, calling for a 16 percent increase in domestic programs as he tries to harness the government’s power to reverse what officials called a decade of underinvestment in the nation’s most pressing issues.
The proposed $1.52 trillion in spending on discretionary programs would significantly bolster education, health research and fighting climate change. It comes on top of Mr. Biden’s $1.9 trillion stimulus package and a separate plan to spend $2.3 trillion on the nation’s infrastructure.
Mr. Biden’s first spending proposal to Congress showcases his belief that expanding, not shrinking, the federal government is crucial to economic growth and prosperity. It would direct billions of dollars toward reducing inequities in housing and education, as well as making sure every government agency puts climate change at the front of its agenda.
It does not include tax proposals, economic projections or so-called mandatory programs like Social Security, which will all be included in a formal budget document the White House will release this spring. And it does not reflect the spending called for in Mr. Biden’s infrastructure plan or other efforts he has yet to roll out, which are aimed at workers and families.
Trump administration’s efforts to gut domestic programs.
But Mr. Biden’s plan, while incomplete as a budget, could provide a blueprint for Democrats who narrowly control the House and Senate and are anxious to reassert their spending priorities after four years of a Republican White House.
Democratic leaders in Congress hailed the plan on Friday and suggested they would incorporate it into government spending bills for the 2022 fiscal year. The plan “proposes long overdue and historic investments in jobs, worker training, schools, food security, infrastructure and housing,” said Senator Patrick J. Leahy of Vermont, the chairman of the Appropriations Committee.
Shalanda D. Young, who is serving as Mr. Biden’s acting budget director, told congressional leaders that the discretionary spending process would be an “important opportunity to continue laying a stronger foundation for the future and reversing a legacy of chronic disinvestment in crucial priorities.”
The administration is focusing on education spending in particular, seeing that as a way to help children escape poverty. Mr. Biden asked Congress to bolster funding to high-poverty schools by $20 billion, which it describes as the largest year-over-year increase to the Title I program since its inception under President Lyndon B. Johnson. The program provides funding for schools that have high numbers of students from low-income families, most often by providing remedial programs and support staff.
The plan also seeks billions of dollars in increases to early-childhood education, to programs serving students with disabilities and to efforts to staff schools with nurses, counselors and mental health professionals — described as an attempt to help children recover from the pandemic, but also a longstanding priority for teachers’ unions.
Mr. Biden heralded the education funding in remarks to reporters at the White House. “The data shows that it puts a child from a household that is a lower-income household in a position if they start school — not day care — but school at 3 and 4 years old, there’s overwhelming evidence that they will compete all the way through high school and beyond,” he said.
There is no talk in the plans of tying federal dollars to accountability measures for teachers and schools, as they often were under President Barack Obama.
his vision of having every cabinet chief, whether they are military leaders, diplomats, fiscal regulators or federal housing planners, charged with incorporating climate change into their missions.
The proposal aims to embed climate programs into agencies that are not usually seen as at the forefront of tackling global warming, like the Agriculture and Labor Departments. That money would be in addition to clean energy spending in Mr. Biden’s proposed infrastructure legislation, which would pour about $500 billion on programs such as increasing electric vehicle production and building climate-resilient roads and bridges.
Strategic National Stockpile, the country’s emergency medical reserve, for supplies and efforts to restructure it that began last year. Nearly $7 billion would create an agency meant to research diseases like cancer and diabetes.
Reporting was contributed by Coral Davenport, Zolan Kanno-Youngs, Lisa Friedman, Brad Plumer, Christopher Flavelle, Mark Walker, Dana Goldstein, Mark Walker, Noah Weiland, Margot Sanger-Katz, Lara Jakes, Noam Scheiber, Katie Benner and Emily Cochrane.