Recent news coming out of Argentina this past week reports that the leftist leader there, President Cristina Kirchner, signed a proposal to nationalize the private pension funds of Argentinian workers. This will reportedly provide the government with about $5 billion in annual pension contributions. The legislature has yet to pass the measure. Needless to say, the stock market there tanked. Think this could never happen in America – think again!
Teresa Ghilarducci is a professor at the New School of Social Research. She testifed before another one of those long named subcomittees in Congress that wastes our time and tax dollars. She was presenting an idea that the liberals think is a great idea and a way to rescue American investors who have watched their savings dwindle in the rollercoaster stock market. That idea first calls for the elimination of tax breaks on 401K contributions. Yes, you read that right – no more write off on those tax forms which allows you to claim a lower gross income. The next part is even better! How about if the government lets you transfer the money you have in your 401K at the amount it was valued at in August and put it into a government created “guaranteed retirement account”? I know, I know, that word “guaranteed” causes milk to shoot out my nose too. In return, the government will deposit $600 every year into your account. You will be required to contribute 5% of your income annually. And guess what kind of return they will give you: 3%.
There are so many problems here, where do I start?
1. This first one is the most obvious. Social security is slated to pay out more than it collects by the year 2018. The government has already helped itself to these funds which were in a “lockbox” and replaced them with IOUs. I’ll never see any of that stolen money. Would you give the government access to the rest of your retirement savings with that track record?
2. Socialism, socialism, socialism. The government has been taking over little bits of everything – usually while we are sleeping – and now they want control of those pension funds.
3. Can anyone say, “Pathetic return?”
4. In order to do this, investors would abandon the stock market right now while the stock market is – hopefully – near the bottom. And what do you suppose this will do to the market?
5. Does your employer offer the incentive of matching funds? You can kiss those good-bye. The government won’t be matching.
6. You will have no say in how that money is invested.
If you are still drinking the liberal Kool-Aid, please wake up! A philibuster proof Congress and a president Obama will not be stopped from implementing this kind of plan and even more nefarious ones. They’ll tell us all it is for our own good. Bondage is never good. I keep hearing William Wallace in my head screaming, “Freedom!” Barack Obama and the liberals hate freedom.