The myRA proposed by President Obama in the 2014 State of the Union speech isn’t going to help the poor, according to CNBC:
President Barack Obama’s newly created retirement account (myRA) will do very little to help the working poor and will quickly become another bloated bureaucratic system that wastes billions of taxpayer dollars.
This forced savings program was never about helping the poor save money. It’s true purpose is to force people to buy government securities.
Rather than having savers choose from a variety of investments available in the marketplace, myRA establishes a fund that invests in a government-managed program guaranteed by taxpayers.
So here’s the irony: The myRA will actually have the working poor financing the government’s deficit spending. By creating accounts that invest in a government pool, it’s yet another way for the Treasury to raise funds without having to sell bonds in the public markets.
Which is important, because 90% of all government securities currently being offered for sale are being purchased by the Federal Reserve. And that’s because no foreigner wants to buy the debt of a government that is reducing the real value of that debt by debasing the currency with Quantitative Easing and ZIRP.
While this may not have been the original intention behind its creation, it’s an important consequence nonetheless.
Trust me, this is the original intention behind the creation of the myRa. Remember, it’s not your money. And don’t we already have a forced savings plan called Social Security?
Correct me if I am wrong, but wasn’t Social Security created to be the stopgap that helped seniors who didn’t have retirement savings?
Yes it was. But you need to remember that the Supreme Court has ruled that you have no legal right to the money that the U.S. government has forcibly extracted from you for Social Security. In reality, Social Security is a Ponzi scheme in which today’s workers are paying for today’s retirees. If the government receives the money from taxpayers on Monday, it’s out the door to retirees on Tuesday.
Given that we still have a large percentage of poor retirees in spite of this gigantic government system, isn’t it time to admit that government programs simply are not the answer?
Yes, it most certainly is. But if government isn’t the answer, then self-important psychopathic politicians don’t get to boss people around from their offices in Mordor on the Potomac.
A new government plan that offers a whopping 1.5 percent return is not going to entice anyone to save more. No one who is struggling to make ends meet will make the decision to go without getting the kids new shoes so they can put a few dollars into a myRA plan.
That’s just it. They won’t have to make the decision, Mr. Obama has already made it for them. Enrollment in the myRA is mandatory if your employer doesn’t offer you a 401(k) plan. You will automatically be enrolled unless you ‘opt out’. And the irony is that many of those who voted for Mr. Obama are the ones who are going to be ripped off by his myRA plan.