Democrats’ Secret Plan to Nationalize Retirement Accounts Causing Quite a Stir!

Well, as more becomes known about the Democrats’ secret plan to “nationalize” Americans’ private retirement accounts, the reaction has been swift — and overwhelmingly negative.  An editorial in yesterday’s Pittsburgh Tribune-Review shows that the mainstream media is FINALLY paying attention to the more extreme proposals the Democrats, flush with their recent victory, are making.

A social insecurity scheme by Teresa Ghilarducci, a professor at the New School for Social Research, to eliminate the preferential tax treatment of 401(k) accounts will rob from the people and kill their dreams for a secure retirement.

House Democrats recently invited Ms. Ghilarducci to testify before a subcommittee on her idea to spread the wealth around by having workers transfer their money into government-created “guaranteed retirement accounts.”

The government would promise to deposit $600 (inflation indexed) annually into the GRAs. Each worker also would be forced to save 5 percent of his pay for the account. The government would supposedly pay a whopping 3 percent return. But workers would be able to pass on only half of their account balances to their heirs.

As we reported a few days ago, the idea of “Guaranteed Retirement Accounts” (GRAs) is gaining traction among the far leftwing of the Democratic Party — largely because Democrats see a window of opportunity with the recent crash in the stock market. In exchange for “guaranteeing” a measly 3% return over inflation — at least temporarily — they would gain access to literally TRILLIONS of dollars sitting in Americans’ SEPs, IRAs, Keoghs and 401 (k) accounts. The plan calls for “pooling” the money into a vast fund to be administered by the Social Security Administration.

The truth is, the government is broke — and sovereign funds and foreign governments are increasingly less interested in loaning the U.S. government more money to cover its deficit spending. As a result, the Feds are eying the only large pool of money left in the U.S. — the retirement savings of babyboomers!


There is all this CASH just sitting there — and the Feds can’t even TAX it because it’s in tax-deferred accounts. THEY WANT THAT MONEY! If they eliminate the tax-deductibility of IRAs and 401 (k) accounts, and “convert” the cash into GRAs, then Social Security and its subsidiaries can “administer” all that money.

We’re not the only ones paranoid about what left-wing Democrats secretly want to do with our retirement money. As the Pittsburgh Tribune-Review puts it:

Why trust a government that’s incapable of bailing itself out?

If anyone is foolish enough to consider such madness — even House Democrats feeling their oats after their successes on Election Day — look at the economic chaos caused in Argentina when President Cristina Kirchner said her government would seize private retirement accounts.

Confiscating American workers’ retirement accounts to create Social Security Lite is an abomination that, if it ever gets traction on Capitol Hill, must be considered dead on arrival.

Our sentiments exactly!