A great Captain Kirk spoof for gun control and how to deal with Obama Thugs: http://video.yahoo.com/watch/3662419?fr=yvmtf
Posted on 10/25/2008 5:57:14 AM PDT by Grampa Dave
Would Obama, Dems Kill 401(k) Plans? October 23, 2008 10:47 AM ET | James Pethokoukis |
I hate to use the "S" word, but the American government would never do something as, well, socialist as seize private pension funds, right? This is exactly what cash-strapped Argentina just did in the name of protecting workers' retirement accounts (Efharisto, Fausta's Blog). Now, even Uncle Sam isn't that stupid, but some Democrats might try something almost as loopy: kill 401(k) plans.
House Democrats recently invited Teresa Ghilarducci, a professor at the New School of Social Research, to testify before a subcommittee on her idea to eliminate the preferential tax treatment of the popular retirement plans. In place of 401(k) plans, she would have workers transfer their dough into government-created "guaranteed retirement accounts" for every worker. The government would deposit $600 (inflation indexed) every year into the GRAs. Each worker would also have to save 5 percent of pay into the accounts, to which the government would pay a measly 3 percent return. Rep. Jim McDermott, a Democrat from Washington and chairman of the House Ways and Means Committee's Subcommittee on Income Security and Family Support, said that since "the savings rate isn't going up for the investment of $80 billion [in 401(k) tax breaks], we have to start to think about whether or not we want to continue to invest that $80 billion for a policy that's not generating what we now say it should."
A few respectful observations:
1) McDermott is right when he says the savings rate isn't going up. But the savings rate doesn't include gains to money you invest in the stock market. It ignores the buildup of net worth. (If you bought a share of XYZ Corp. in January at $100, for instance, and its value doubled by December, the savings rate measure would still value that investment at $100. In short, the savings rate is a phony number.)
2) So based partly on the above faulty logic, the $4.5 trillion, as of the start of the year, invested in 401(k) plans doesn't count as savings.
3) Ghilarducci would have workers abandon the stock market right at the bottom of the market. A stupid idea, according to Warren Buffett: "I don't like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I'll follow the lead of a restaurant that opened in an empty bank building and then advertised: 'Put your mouth where your money was.' Today my money and my mouth both say equities."
4) Ghilarducci would offer a lousy 3 percent return. The long-run return of the stock market, adjusted for inflation, is more like 7 percent. Look at it this way: Ten thousand dollars growing at 3 percent a year for 40 years leaves you with roughly $22,000. But $10,000 growing at 7 percent a year for 40 years leaves you with $150,000. That is a high price to pay for what Ghilarducci describes as the removal of "a source of financial anxiety and...fruitless discussions with brokers and financial sales agents, who are also desperate for more fees and are often wrong about markets." Please, I'll take a bit of worry for an additional $128,000.
5) What effect would this plan have on an already battered stock market? Well, I would imagine it would send it even lower, sticking a shiv into the portfolios of everyone who didn't jump aboard. But I am sure the Chinese would love to jump in and buy all our cheap stocks to fund the retirement of their citizens.
My bottom line: If you believe in the long-run dynamism of the American economy, then you have to believe in the stock market. Listen to superinvestor Buffett, not the prof from the New School.
Tags: Democrats | Barack Obama | stock market | 401(k)
Folks, this is fascism in your face.
Americans, who can't balance their checkbooks and do simple math are in terror about managing their IRAs and 401ks.
Throw in the current paper losses in their IRA's and 401ks due to the rat engineered Fannie/Freddie Scam and Bailout, a very large % retirees and those with these plans would gladly hand over control of their funds to their friends in congress.
This would provide the cash for their bailouts and the coming bailouts of State Retirement Funds like Cal Pers..
One can see mandatory ownership of trash bonds to cover Freddie/Fannie reparation mortgages and the bail out of the state employment programs from NY to California.
Obama and his fellow rats don't want their voting slaves to pay for their SS. This Frankenstein creation would create a huge money pool for reparation SS checks for current slave votes and every illegal, who becomes an automatic citizen.
Vote in Obama and a veto over ride rat Congress, and we can kiss our decades of hard work, savings and retirement benefits goodbye.
Let ‘em try.
The GOP will recapture both houses of Congress in 2010 at a rate that will make 1994 look like a walk in the park to the Democrats.
bump
Who controls congress? This is one of the problems, too many stupid people voting for Obama.
“Take”??? Remember, Socialists already think it is their money to begin with. Anytime they can get their hands on money plan on them taking the opportunity.
If these animals take power all bets are off.
Usually, I believe in fighting our battles at the ballot box...but sometimes, I wonder if it’s time to utilize the Second Amendment to it’s original intent...
If it is not time it is getting closer.
If this doesn’t fire people up to vote against Obama and any rat congressit up for re election.
Those people are mentally ill and should turn their retirement plans over to Obama, Je$$ie HyJackson, Ted Kennedy, Pelo$i Galore, Reid the Dead, Kerry, $inator $hrill and other rats in in Congr$$ having wet dreams about controlling our IRAs and 401ks.
Please send a copy of this oped to everyone with a brain on your email list.
Too many stupid people voting. Too many dead people voting too.
In short, the system will first mirror social security, then merge with it, and at the end of the day, you will be left with the same meager social security check even though your contributions to it would have doubled.
“Who controls congress? This is one of the problems, too many stupid people voting for Obama.”
Our side has too many mentally ill people who want the rats to win to teach Republicans and America a lesson.
Well that happened in the congressional elections in 2006, and we can thank those insane idiots for aiding and abetting the enemy.
Lets defeat Obama this November or we can kiss 2010 and America goodbye.
Je$$ie Jackson and other reparation buttheads have been wanting chunks of our IRAS and 401ks for decades.
If this happens, they will get % each year.
Then only their approved pseudo business and outfits like Acorn would be approved investments for these funds.
Any company not in the pocket of the Rats can forget about any capital from this federal controlled pyramid scam.
Just as a side note for laughs: the Mayan calendar ends at 2012.
2010???
The “Tea Party” would happen long before then!
A great Captain Kirk spoof for gun control and how to deal with Obama Thugs: http://video.yahoo.com/watch/3662419?fr=yvmtf
The GOP will recapture both houses of Congress in 2010 at a rate that will make 1994 look like a walk in the park to the Democrats.
If BOH wins the WH and the Dems win both houses of Congress, look for this country to take a real Stalinist turn. They will do whatever is necessary to ensure their domination for generations to come, even if it means trampling on the civil rights they proport to champion. Don’t expect the truth to get out and don’t expect the public to get it right even if it somehow does.
“If these animals take power all bets are off.”
Absolutely, we have to defeat Obama the Oreo Elite Facist.
If he wins and gets a congress that can totally control everything, they will do anything they can dream of to destroy us, our families and America.
“Too many stupid people voting. Too many dead people voting too.”
Which is why, we who aren’t stupid nor dead must vote for McCain/Palin and get those like us to vote.
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