An editorial in today’s Investors Business Daily says “Democrats have obliquely admitted they covet Americans’ 401K pensions. Last week, congressional Republicans told them to stay away. The shame is that they had to do anything at all.”
From the IBD editorial:
The first rumblings were heard in the 1990s, when Democrats were said to be coming after our retirement accounts. Back then, the warnings were easy to pass off as hyperbole or a cranky conspiracy theory. Today, they pass as prescient.
In January, Bloomberg reported the “U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and individual retirement accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry.”
Having raided the Social Security trust funds Democrats are looking at the pile of cash sitting in private 401K accounts and seeing an opportunity. They will want us to believe we are “investing” our money by giving it to them in exchange for a retirement annuity that will have about as much assurance as current Social Security promises hold for young working stiffs today. They will use our money to immediately pay off the trillions in deficits they have wrung up leaving nothing to back up their empty promises.
Whatever you have in your 401K today, it is yours and yours alone. If you die you can leave it to your family. Exchanging your 401K for a government annuity would mean that you no longer own anything. You would have exchanged a real asset for an empty government promise, and deprived your family of an inheritance. This is something any fool can see through, even liberal ones. The audacity of hope becomes the audacity of hype.
Republican lawmakers are taking the threat seriously. They have expressed to the administration through a letter their “strong opposition to any proposal to eliminate or federalize private-sector defined contribution pension plans.” These congressmen know that among their Beltway brethren there exists an eagerness to “essentially dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan.”
This isn’t the first time Democrats have eyed Americans’ retirements. In 1993 the Washington Post reported that the Clinton administration considered an “unprecedented effort by the federal government to deal with its budget woes by turning to the more than $4 trillion in cash, stocks and other investments held by pension funds.”
Write your Democrat Congressman or Senator. Tell them to take this idea that comes straight from the heart of darkness and to “stick it in a place where the Sun don’t shine.”