Reuters and zero hedge posted articles this past week about the EUs serious plan for the wholesale confiscation of the personal savings accounts of over 500 million EU members to prop up their moribund economy. Zerohedge pointed to the possibility that Obama’s MyRA could end up being the same thing, a theory we have discussed here for three years, most recently in January.
It’s not just a possibility, Mr. Obama has enunciated this plan in his 2008 and 2013 budgets. He clearly wants the $17.5 trillion in personal retirement savings accounts and he believes the government should be the steward of our money.
Mr. Obama, however, never acts alone. No, I don’t mean he works with Congress, I mean he works closely with what is becoming his media. Interestingly, an article on CBS News MoneyWatch appeared today promoting the idea that people (Americans) are incapable of planning for retirement and they even backed up this view with research.
They say that there has to be a new way of thinking about retirement.
“Rational choice theory” is out. I’m guessing MyRA is in.
“Rational choice” theory has been the economic model for retirement savings. It assumes people make decisions by putting together a list of options, choosing from them and doing so in one’s best interest. It also assumes people have access to the information they need.
None of that is true apparently, at least that is what moneywatch wants us to believe.
Behavorial scientist, Richard Thaler of the University of Chicago, is quoted in the article as having once said, “For many people, being asked to solve their own retirement savings problems is like being asked to build their own cars.”
We now know, moneywatch concludes, that most people aren’t rational decision makers.
Moneywatch has a decidedly jaundiced, cynical and condescending view which aligns quite nicely with Mr. Obama’s. Even if it is true, what business is that of the government?
People, they say, and they have research to back it up, can’t make a list of planning options; they can’t make predictions about outcomes; people don’t look at the whole picture; they don’t adequately estimate how they will feel about their decisions; people don’t have willpower; and, finally, people are too altruistic and collaborative, they will blow their money on friends and family.
Now CBS didn’t say what to do about it but I think we know where this is going. It’s the seed they want to germinate in the public’s mind. We need the government to do it!!! They can make decisions so much better about our lives than we can and they will keep us from spending money on family and friends – they will redistribute it instead.
In December, NBC did a scare piece on how we save now. In January, abc news didn’t sound concerned that Obama used his pen and phone to institute MyRA for people who make up to $191,000 and who are breathlessly waiting for an Obama retirement plan backed by the government (our tax dollars). A plan that will in the end give a meager payout, if that, after they have used your money for decades.
It’s coming. Obama wants your personal retirement savings. He will start with a deceptively helpful retirement plan for people who don’t have one, but I think we all know where this is going. We are talking about $17.5 trillion and if you think the government doesn’t want it, you are naïve.
The same government that wants you to be free to smoke pot until you are mind-numbingly stupid, doesn’t think you have the right to save your own money for your own retirement. Obama wants what Jerry Brown just approved in California – a forced retirement savings. Brown’s plan only covers low-income workers, but that’s for now.
You know I’m right.