Carter II Watch
Posted by aogSaturday, 11 October 2008 at 20:01 TrackBack Ping URL

One thing that is a major concern from the FMO08 is a “regulation bubble” where massive regulations are passed in a hurried and completely unexamined way and remain to burden the economy and its recovery with little to no actual benefit (Sarbanes-Oxley comes to mind). One that would be interesting to watch with regard to political fallout would be this one

A wide range of sweeping changes to the 401(k) system were proposed Tuesday at a hearing on how the market crisis has devastated retirement savings plans.

Chief among them was eliminating $80 billion in tax savings for higher-income people enrolled in 401(k) retirement savings plans.

This was suggested by the chairman of the House Committee on Education and Labor.

Yeah, that will go over well. And as for privatizing Social Security,

Congress should let workers trade their 401(k) assets for guaranteed retirement accounts made up of government bonds, suggested Teresa Ghilarducci, an economics professor at The New School for Social Research in New York.

When workers collected Social Security, the guaranteed retirement account would pay an inflation-adjusted annuity under her plan.

So basically, the government would steal worker’s retierment savings and bump up their putative SS payout? Another political winner of a plan. And even those who don’t agree voluntarily should wonder just how long such a thing would remain voluntary.

That’s the kind of thing that will make Senator Obama’s four years a burden and not a benefit in 2012.

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