Obama budget to force more savings

[Skip to the end]

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:

Obama seeks ‘Automatic Pensions’, Labor Enforcement

by Holly Rosenkrantz

Feb 26 (Bloomberg) — The budget “lays the groundwork for future establishment of a system of automatic workplace pensions, to operate alongside Social Security, that is expected to dramatically increase” retirement and personal savings, Obama’s Office of Management and Budget said in its outline, without giving details on the costs.

The plan would force employers that don’t offer retirement plans to enroll employees in a “direct-deposit IRA account,” 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.