401(k) appeals because savings are deductible

Economist Teresa Ghilarducci’s plan to restructure 401(k)’s shows her ignorance of investing and even greater lack of understanding of human nature.
Her scheme cloaks in obfuscation the reality that the tax deductibility of our current system will be abandoned. Once tax deductibility is taken away, there will no longer be any motivation to save in this manner.

Ghilarducci wants to help the class that saves nothing now, by ruining the whole system that serves more responsible members of society. A more compassionate way of helping the underclass save for retirement would involve mandatory public school education about investments’ many options.

But teachers unions are dead set against helping the most vulnerable become members of an ownership society. Their sole reason is that people who are invested in an ownership society are more likely to vote Republican. Ghilarducci and her ilk are committed to maintaining a class of dependent Americans.