Free Markets, Free People

IRA


Nanny State savings

O

ne of the most insidious things about the development and expansion of the Nanny State is the programs that pave the way usually sound like a "good thing".

For instance, who wouldn’t think that saving for your future isn’t a good thing? Anyone? However, doing so if you so choose is the way a free people would approach that subject. Which is why, even though it may sound good to some, I would adamantly oppose any government savings program imposed on us:

The White House and congressional Democrats, with the backing of the AARP, will soon put forth a plan to automatically enroll new private-sector employees in investment retirement accounts (IRAs).

The measure will apply to new workers at firms that don’t currently offer 401(k) retirement plans, according to AARP, the lobby group for seniors. Workers would have the choice of opting out of the accounts.

Now most of you will spot the fact that the worker at a firm that doesn’t offer a 401(k) now is already able to open an IRA should they so choose. What the government and it’s crony – the AARP – are planning to do is change the choice. Now you will have an IRA unless you opt out.

Can anyone tell me where the burden will fall to ensure compliance? I mean what’s the natural collection point for this sort of paperwork? What entity will have to provide the initial paperwork as a matter of routine when the new employee is hired, ensure the option is presented and, if the employee chooses to open an IRA, provide assistance in doing so as well as provide the automatic payment allotment to the IRA?

And, last but not least, there will be a need for a new government bureaucracy to monitor and ensure compliance. In fact, this is just another in a long line of intrusions that most freedom loving people would say is none of the government’s business.

Defenders of a program like this would claim there’s nothing wrong with it, savings is good, and besides, new employees have an opportunity to opt out.

Well, right now, they have an opportunity to opt in. And that’s the point. Those who want to can choose to do so now without any government involvement or business compliance involved at all.

This boils down to another burden and cost imposed on business and yet another intrusion by government under the auspices of "you are unable to make smart choices for yourself, so we’ll do it for you".

Is anyone yet growing tired of that?

~McQ

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