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Just what we need- one more subtraction from aggregate demand and yet more tax advantaged funds for managers to play with.
Clearly he believes that “we need savings to have funds for investment” and has at best forgotten the implications of the paradox of thrift:
by Holly Rosenkrantz
Feb 26 (Bloomberg) — The budget ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œlays the groundwork for future establishment of a system of automatic workplace pensions, to operate alongside Social Security, that is expected to dramatically increaseÃƒÂ¢Ã¢â€šÂ¬Ã‚Â retirement and personal savings, ObamaÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢s Office of Management and Budget said in its outline, without giving details on the costs.
The plan would force employers that donÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t offer retirement plans to enroll employees in a ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œdirect-deposit IRA account,ÃƒÂ¢Ã¢â€šÂ¬Ã‚Â with the option for workers themselves to opt out. Currently, 75 million working Americans, or about half the workforce, lacks employer-based retirement plans, according to the administration.