In late 2007, Teresa Ghilarducci, professor of Economics at the New School for Social Research, introduced the Guaranteed Retirement Accounts plan. The reality of this euphemistically titled proposal is government control over our retirement plans. The money invested in 401k plans will be amalgamated into the Social Security system. The government will turn around and invest YOUR money in the financial markets, and you will receive this money in the form of a Social Security check. No thank you, Uncle Sam.
In general this is just another wacky Democratic idea to “spread the wealth” in America. Let’s face it, if our government were to implement a plan such as this, we would be that much closer to socialism. Over 200 years ago, individuals fought for the freedom of America, and yet here we are handing it over on a silver platter to the government. In this case of government intervention and control, where’s the separation between the responsible and the laggards? We should each be held responsible for our actions: if you save for the future, then great, otherwise you made your choice.
For all those people who have spent many years investing their savings in 401(k) plans, so much for that! With our soon to be Democratic run government, a plan like this may be seriously considered amongst our political leaders. Ideas like this make you wonder, what will the United States of America be like in another 50 years or so…
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