When I saw this article yesterday, it didn’t register. On closer examination, maybe it should have. Power Line Blog is reporting on the nationalization of retirement accounts in Argentina. Doesn’t sound relevant, does it? Look again.
This is from Investor’s Business Daily on Thursday, October 23.
“Yet U.S. Democrats in Congress are mulling like-minded moves to scrap 401(k)s and transfer them into government-managed “guaranteed retirement accounts” with a 3% return, according to James Pethokoukis of U.S. News & World Report (full disclosure: Pethokoukis is a former IBD reporter).
Before they charge ahead, they should look at what happened since Argentina’s announcement: Its stock market lost 23% of its value in two days, for a 57% loss since January. The losses spread to other markets in Brazil, South Africa and Spain.
Markets don’t like expropriation of private property — including savings. And this takes away a key source of private capital. Moreover, one quarter of private pension assets were by law invested in Argentine stocks, making up about a quarter of the bourse’s value. So the seizure of pensions amounts to government ownership across the entire private sector.”
Do you really want the people who have thoroughly robbed the Social Security Fund to be able to do the same to your 401K (or 101K as things are right now!). Even if they do not take them over, there are committees in Congress now discussing taking all 401K related tax breaks away from worker who contribute to them and employers who sponsor and match employee contributions. Be careful how you vote–a Democratic Congress without a Republican President to keep it in check would be a disaster for the country, the economy, and private enterprise.