undercapitalized. Not worth it for lackluster gains.
stocks are a horrible idea if you arent walking into the game with hundreds of thousands . The returns are not worth giving the capital to people. Oppourtunity cost is too high. On avg, that stock trader would be lucky to make 10% per year if they did nothing and put it inton an index fund. If they tried being the wolf of wallstreet, their returns are almost garunteed to underperform the market at a sub 10% return. A disgustingly small outlier of people beat the market consistently. At most, the taxpayer's 35000 is going to generate 3500 for the year at that 10% rate in the long term
Now compare that 3500 dollars on a 35k investment to only tiny 6k investment into an nursing lpn course, an ASE auto cert, or a CDL program. The investment in the education will take a 25-35k uneducated person to 50k, yeilding more than 4000% return. This is a much more efficent use of public funds than giving everyone a brokerage account to make chump change.
Ideally, you would only turn to the stock market once you have maxed the amount you can earn from your own labor, and need more streams of income,. The target demographic of the governor's plan is very very very far from maxing out their earning potential.
