[L]ast Thursday, a Senate Health, Education, Labor and Pensions Committee held a hearing on retirement savings and security... The point of the meeting was to figure out ways in which private 401(k) plans could be more "fairly" distributed as taxpayer-funded pensions. Senator Tom Harkin, Chairman of the Committee, hand-picked the witnesses for the meeting. Who did he chose? People advocating "Guaranteed Retirement Accounts"...It is a plan created by Theresa Guilarducci and it would seize private retirement accounts, set up an additional 5% mandatory payroll tax, and then use the money from the tax and seizure to distribute it "fairly" to Americans."
Read more here.
One quick note---consider the fact that if the government could not devalue our money, saving for retirement would be much easier. Fiat money and legal tender laws give government the power to erode the value of the dollars we earn so that simply putting them in a bank is an inadequate strategy to save for the future. In order to just stay even, one has to invest.
Here's a chart of the increase in the monatary base (i.e. creating money out of thin air) since 1910:
Now look at the purchasing power of those dollars:
Key dates to remember:
1913: The Federal Reserve was created .
1944 Bretton Woods and the creation of the International Monetary Fund.
1971: Nixon defaulted on the gold standard, ending convertibility of the dollar to gold.
Looking at the purchasing power chart, it is glaringly obvious that each of these government manipulations of our money was followed by a severe plummet in the value of our dollars.
A dollar earned in 1910 would only be worth $.04 in 2009.
A dollar earned in 1950 would only be worth $0.11 in 2009.
This is out right theft by the government---which then uses the fact that people have a hard time saving for their retirement to justify the "need" for programs like Medicare and Social Security.
These acts should be considered crimes!!
And now, the covert theft of our savings is inadequate to fund the bloated beast of government spending, and they want to confiscate our retirement funds outright.
Where is the outrage?