“Close... Biden wants to steal your 401(k).”
As I recall the proposal that came from the Obama white house it went something like this. The government would take all of the cash in 401ks, IRAs and other related accounts and replace them with government bonds. At the time, as I recall, this amounted to something around 15 trillion dollars. (Not sure of the number.)
One problem with that was these accounts are invested in stocks. Would the government take the stocks and sell them for the cash? What would be the impact of a substantial selloff on the market? Also, the bonds they would replace the stocks with would probably not even keep pace with inflation. The whole idea was idiocy. But it came from the cash-for-clunkers people. We saw how poorly that worked out.
But imagine how many high speed trains, wind farms and battery factories the government could “invest in” with that much cash.
The government would take the stock, vote it, and then force companies to do its will.
Just another method of socialism.
“ As I recall the proposal that came from the Obama white house it went something like this. The government would take all of the cash in 401ks, IRAs and other related accounts and replace them with government bonds.“
Close. They deal was to “carve out” 25% of those accounts to “buy” a lifetime annuity that would kick in at age 70. When asked what insurance companies would be providing the annuities the answer was “none...the government of course”.
So that 25% would go to the general fund immediately and then become a “Social Security” II, “funded” by government IOU’s (bonds).