WASHINGTON — One new proposal emerging from the national debate on how to overhaul Social Security could make every American a millionaire at age 65.

Paul O'Neill, President Bush's first treasury secretary and a former chief executive officer of aluminum giant Alcoa, proposes having the government stake every American baby at birth to an investment savings account. By the time the child retires, the account would contain $1 million or more. The idea is drawing attention from an unusual coalition of lawmakers from both parties, liberals as well as conservatives.

This is how it would work:

• Upon each child's birth, the government opens an investment savings account in his or her name and puts $2,000 into it. The government puts another $2,000 into the account every year until the child turns 18. The money then would be left to grow at a compounded rate until the individual reaches the retirement age of 65.

• Assuming a 6 percent continuously compounding rate of return over 65 years, money in the account would exceed $1 million. The money would be put into a 20-year annuity paying about $82,000 a year.

• Assuming 4 million births annually, O'Neill estimates it would cost about $144 billion to fund accounts for each year's babies for 18 years.

• After 65 years, this would eliminate any need for Social Security since all Americans would retire rich. His plan doesn't address funding the system's current projected shortfalls.

"It's a way to think about creating financial security for the entire population and growing into it," O'Neill said. "It hastens the pace to convert the whole society into what I think is a hell of a lot more equitable system."