Gerstner says individuals with $100B+ could invest $10B to match contributions for families earning under $150K.
“I've heard from several of these folks who have upwards of a $100,000,000,000 that they could take $10,000,000,000, put it in a drawdown trust in their state, for example, invest in the S and P 500, and match for all the kids of the families who earn, let's call it, under a $150,000.”
Gerstner proposes billionaires use $10B drawdown trusts to match accounts for families earning under $200K in states like Texas.
“They would invest it in a drawdown trust. They would match every kid in the state of Texas whose family earns under $200,000 for the lifetime of that account.”
Gerstner notes Dell's $6.25 billion contribution targets zip codes with average incomes under $150,000.
“A key component of their announcement, Ed, was that their 6,250,000,000 is only going to families that live in zip codes where the average income is less than $150,000”
Gerstner confirms Michael Dell's contribution targets ZIP codes with median income under $150,000.
“Michael's contribution is for the ZIP codes where the median income is a $150,000 or less. So I think this is gonna be plenty progressive.”
Gerstner advocates for voluntary 1% equity contributions from AI founders like Altman or Dario, citing Benioff model.
“The Trump administration has not done this. I hope they don't go down this path. I don't think they're going to go down this path.”
Gerstner reports Micron announced $250 million for a million kids' accounts this week.
“And the momentum we have around this is totally extraordinary. Every company that is signing up to add money to the accounts of of of the kids, of their employees, companies like Micron, Sanjay announced this week, $250,000,000 going to a million kids in the communities they serve.”
Gerstner cites Micron's $250 million contribution to a million kids and the Dells' $6.25 billion gift.
“Companies like Micron, Sanjay announced this week, $250,000,000 going to a million kids in the communities they serve. Of course, everybody's familiar with the $6,250,000,000 gift from the Dells,”
Gerstner argues direct stock gifts to all children enable large-scale philanthropy without overhead.
“Think about the transformational effect of that. So we now have the ability to have large scale direct philanthropy,”
Gerstner cites Buffett's frustration with Gates Foundation overhead, proposes direct stock gifts as transformational alternative.
“Now imagine that instead he could just give a share of Berkshire Hathaway to every child in America and let that compound for the last twenty years.”
Gerstner says billions more in corporate contributions to children's accounts are queued up beyond the $6.25 billion Dell gift.
“Of course, everybody's familiar with the $6,250,000,000 gift from the Dells, but we have Ray Dalio in Connecticut, me in Indiana, Harold Hammond in Oklahoma.”
Gerstner contrasts new direct stock philanthropy model with traditional foundation overhead that frustrated Warren Buffett.
“Think about the transformational effect of that. So we now have the ability to have large scale direct philanthropy, no middleman in the middle taking a rake of those proceeds”
Gerstner says he has billions in additional announcements queued up for children's accounts.
“And I can tell you, I have billions and billions of announcements in queue for the kids. This is bonus dollars”
Gerstner announces Gwen Shotwell gifted 2 million SpaceX shares to 2 million children through Invest America accounts.
“Gwen Shotwell's gift this morning, an extraordinary gift. 2,000,000 shares of SpaceX to 2,000,000 kids that they'll hold in their accounts over the course of the the next ten to to twenty years.”
Gerstner claims companies and philanthropists have committed billions to Trump Accounts for California's next generation.
“Some of the state’s most dynamic companies and philanthropists have already stepped up, committing billions of dollars to Trump Accounts to invest in the next generation. Together, we can expand hope and opportunity for all California kids.”