Michael Dell defends new 'Trump Accounts' stock rule after wife’s viral Oval Office video
Just days after Michael and Susan Dell appeared at the Oval Office to support the Trump Accounts program, Michael has spoken out to defend the movie following a viral video.
The Dell CEO and his wife met with President Donald Trump on Wednesday (October 7), committing a $6.25 billion donation to fund seed accounts for 25 million American children under the age of 10.
This is part of the US government’s Trump Account program which creates tax-free investment accounts with a $1,000 seed deposit. The Dells’ contribution offers an additional $250 investment, which should grow over time and can be accessed when the child turns 18.
The Dells pledge $6.25 billion to children’s investments
However, clips of the couple appearing alongside the president started to do the rounds on social media, and not everyone was convinced by the move, with critics arguing that wealthy investors should not be able to donate their own personal company stocks to Trump Accounts.
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Hitting back at this, Michael stated to Yahoo Finance: “It’s kind of hard for me to believe that’s a bad thing, right? That these children are going to somehow be negatively influenced because they now have one share of SpaceX, but they didn't have before, right? The alternative is they didn’t have it, right?
“It seems unlikely that that is some kind of devious plot to somehow influence these two million children. If anything, they’re going to be interested in space and capitalism and how capital markets work, compounding and investing, and it will spark an interest in them that hopefully helps them as they become adults.”
This comes after SpaceX president Gwynne Shotwell pledged over two million shares to lower income children aged 11 to 17.
Trump Accounts raise ethical questions after rule change
However, naysayers believe that linking the investments of children to individual firms could raise ethical issues. The potential for these companies’ stock prices to be manipulated through this has also been raised.
Appearing at the White House on Wednesday, Susan Dell implored parents to make the most of Trump Accounts for their children, claiming that it is about ‘knowing that someone believes in you and your future, that matters just as much’.
She added: “So to every child across the country, these accounts are for you. We believe in you, and we want you to dream big because we know you can make your dreams come true.”