Scott Bessent Dragged After Suggesting Alternative Gift Idea For Kids 'Rather Than Giving A Toy'

Treasury Secretary Scott Bessent was criticized for the out-of-touch suggestion that children should receive contributions to the Trump administration’s newly launched “Trump Accounts,” rather than physical gifts.

A provision in Trump’s tax legislation creates so-called “Trump Accounts,” which provide $1,000 for every newborn whose parents open an account. The funds are invested in the stock market by private firms, and the child can access the money upon turning 18.

Bessent suggested the program could reduce lottery participation, arguing that families enrolled in the pilot—open to children born between 2025 and 2028—have already “won the lottery,” since each child receives $1,000 in seed money that can grow through compound interest and additional family contributions.

He said:

"We've already had in the last few days 500,000 families sign up. We believe there are 25 million that are eligible so go on the IRS website. ... It's a great way because you can also, if relatives... rather than giving a toy for a birthday or a holiday, they can contribute to these accounts."

"I think we're going to see a substantial drop in people playing the lottery because you've won the lottery. You've got $1,000 and the power of compound interest. Families can add to that so this is really a new kind of philanthropy. It is direct to children."

You can hear what he said in the video below.

Bessent's suggestion isn't being received well amid a nationwide affordability crisis—to say nothing of the fact that children might actually be heartbroken not to have toys to play with.

Consumer spending, which drives much of the U.S. economy, has weakened as many Americans face mounting financial pressure. And who can think of funding these "Trump Accounts" when the latest Consumer Price Index shows grocery costs rising 0.7% in December?

Bessent's remarks also bring to mind ones President Donald Trump made last year, angering many when he said that children may simply have to deal with having “two dolls instead of 30” as a result of his trade war.

At the time, economists and journalists alike expressed concerns that Trump's spate of tariffs, fresh off "Liberation Day," would trigger major shortages for both businesses and consumers.

Online retailers like Temu had already responded with price increases, showing “import charges” at checkout and highlighting the tariff impact—sometimes doubling the original cost of an item.

This didn't seem to bother Trump, who said that "maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more than they would normally."

So no dolls at all, then?

Bessent was swiftly criticized.

Bessent can't seem to stop making clueless remarks.

He was criticized last week for a remark at the World Economic Forum about the number of homes people purchase for their retirement, claiming at a time when Americans are struggling with a nationwide cost-of-living crisis that some are purchasing as many as "12 homes" for their golden years.

Bessent described the administration’s strategy to limit the role of large institutional buyers in the single-family housing market, while preserving protections for smaller, independent landlords, including those who rely on rental properties for retirement income.

He then oddly claimed that the administration is "going to give guidance at some point to see what is a mom-and-pop, maybe your parents for their retirement have bought 5, 10, 12 homes."