Skip to comments.Obama Stumbles Over Latest Promise: “If You Like Your Retirement…”
Posted on 02/02/2014 6:51:20 AM PST by Kaslin
Our imperially inclined President is already acting on the promise he made during his State of the Union to take unilateral action outside of the normal legislative process. And at the top of his non-legislative agenda is the reformation of American retirement. Utilizing his oratory prowess and an executive memorandum, the President is promising to give Americans a new way of saving for retirement Or something like that. Maybe oratory prowess was a bit of an overstatement. It turns out that his teleprompter was never taught about avoiding double negatives let alone triple and quadruple negatives:
Obama: 'I'm Not Going to Wait for Congress' "Now, I'm hoping that Congress goes along with this, but I'm not going to wait for Congress. I could do more with Congress, but I'm not going to not do anything without Congress, not when it's about the basic security and dignity of American workers."
Well Good. Now were all confused. Its nice that we have a leader who can unite us. (What happened to his fantastic oratory skills? Was the teleprompter set on stutter?) Hes not going to not do anything without Congress. The point was still clear, despite the obfuscatory wording. Our all-powerful Campaigner-in-Chief will not wait for the legislative wheels of Constitutional government to be set in motion.
So what is he signing into non-law? Obama has directed his Treasury Secretary, Jack Lew, to create a new savings bond called the MyRA. (Cute name. It rings of Orwellian double-speak given that the MyRA will be a government program.) With mildly more competent sentence structure than before, the President outlined his cure for Americas retirement woes:
And we're calling it "MyRA." Not IRA -- MyRA.
Thank you, Mr. President. I get it. You replaced the I in IRA with the word My to make me feel like I have ownership over the money I invest in this governmental financial instrument. Very clever.
And what it is, it's a new type of savings bond that we can set up without legislation that encourages Americans to begin to build a nest egg.
Wait! Were creating a new savings bond!! And to think I was planning on not saving anything until I started collecting Social Security. Quick! Where do I sign up! (My kingdom for a sarcasm font.)
Workers can contribute through automatic deductions
Am I supposed to be excited that the Treasury Department will allow me to invest with the same technological tools that allow me to subscribe to Netflix?
MyRAs are backed by the full faith and credit of the United States Government.
Oh, that makes me feel good. Anyone know if S&P is planning on downgrading the US again?
[You] can keep the same account even if [you] change jobs.
Oh good! So if you like your retirement, you can keep it.
And it's affordable. You can open an account with as little as $25. You can contribute as little as $5 at a time.
Because nothing helps build a comfortable retirement more than occasional $5 contributions to a government savings bond.
The Administrations push to portray some gimmicky treasury bond as the solution to Americas retirement woes, only highlights the White Houses comically incompetent leadership on fiscal issues. The real problem, aside from Mr. Obamas dependence on an apparently glitchy teleprompter, is far deeper than an insufficient choice of treasury bonds. Artificially low interest rates, declining household wealth, income stagnation, and an abysmal jobs market are far more painful to the retirement prospects of American workers than anything Treasury can singlehandedly address. The Presidents adoption of extra-legislative gimmicks only serve to illustrate the leaderless incompetence of this White House.
It is becoming more apparent that the remainder of Obamas tenure will be a hopeless mess of legislative gridlock, and executive politicking. The MyRA is nothing more than the first of many attempts to convince the American people that Obama will dictatorially go around Congress for the greater good of the nation. Or, as the President put it, hes not going to not do anything without Congress.
0bama, the TOTUS of “not”.
And the term MyRA is already in use by a South Dakota financial services company so, in a just world, Obama will not be able to use that name for his new boondoggle. How embarrassing for him — unless he does the fascist thing and just uses the term anyway.
Sure...we’re going to give the government an additional opportunity to confiscate our savings.
Other than the government gets to use your money rather than a bank how is this MyRA different than a bank savings account?
“Did I say MyRA? I meant ‘OurRA’. You didn’t build that, so you don’t get to keep it.”
“Artificially low interest rates, declining household wealth, income stagnation”
I’ll digress a tad here. Did my tax return yesterday. I encourage everyone to do as I did. I looked back on my returns of the past (I have them back to 1972). One thing that jumped out to me: My interest income is now lower than when I was working while in college. Yup, my cash savings while 100 times as much as then is actually lower. My disposable income has been in constant decline for the past ten years due to this. One other thing I noticed. In 1972 I reported about 12K in gross revenue. I paid $1200 in TAX. That would be an effective rate then of 10%. Today, those making the equal in inflated dollars pay zero and probably get a check called a tax credit. No wonder we are in decline.
a better question is how is it different than this?
There was a brief someplace that mentioned no early withdrawal.
Oh, joy. Lemme see, what else do we 'contribute' to through automatic deductions? Withholding, FICA, Medicare. our wonderful 'voluntary' income tax system.
” ... (My kingdom for a sarcasm font.)”
Thanks, I never knew that program existed.
Not sure what the rate of return is, but it must be better than the .25 % to .50 % a saving account will get...
No, no, I think they are going to put it in the same lock box they put the Social Security in, that way it will be safe and it will be there when you need it.
When Obama refers to our IRA’s as “MyRA”, then you know who really owns it.
Gee Mr. President, did you think of this all by yourself? Or did you assemble all of the best liberal strategists in the country and hash this out as a team?
In baseball they call this playing "small ball".
I have not heard this question asked yet- I can’t believe it hasn’t so let me know if I have missed it, but...
Does ‘MyRA’ money go into the general fund and get spent? Like Social Security?
Is that what makes it different than the current LEGAL ‘IRA’ accounts? (that the government has been dying to get its hands on....)
The camel’s nose protruding into the 401k tent. The left wants to make savings bonds the only investment eligible for 401k plans, which will eventually become akin Social Security and therefore liable to government confiscation at any time. Congress can change Social Security on a whim, (for instance Social Security payments used to be exempt from Federal Income Tax), instituting means tests lowering payments, increasing withholding. If Fidelity tried something like that they’d be frog walking Peter Lynch into Boston Federal Court. When Congress does it, tough cheese.