Baby Stocks: How America’s Equities Could Heal Its Inequities

Abstract

This article reviews economic and financial evidence that explains why the U.S. stock market should be viewed as a social determinant of health. Because U.S. stocks return more than other assets, over time compound interest concentrates wealth in the hands of wealthy, white, and foreign investors who own most of the U.S. market. In contrast, lack of equity ownership sustains financial hardship and racial inequities for the bottom half of the population and worsens their health through socioeconomic effects on medical outcomes. To address these problems with wealth and health disparities, the author reviews potential models for democratizing market ownership and then argues the United States should give an index fund of its whole market to every child at birth (i.e., baby stocks) and ensure long-term holding to build wealth for all citizens.