Should the US government institute some sort of forced savings with a wealth fund?

Nov 2014
412
ph
Basically the idea here is like Singapore's Central Provident Fund, the feseral government will take 40 percent of a person's salary, and will put it in a investment fund, that will be invested blue chip stocks or A rated bonds, with a guaranteed minimum rate of return, and you cannot touch this fund until you reach 65, or you need it for medical care, or housing.
 
Jul 2016
1,343
Dengie Peninsula
Here, in England, about 30% of an income goes on living/ buying a house. So that is 70% out of the way! Different ways.
 

Chlodio

Forum Staff
Aug 2016
4,488
Dispargum
Basically the idea here is like Singapore's Central Provident Fund, the feseral government will take 40 percent of a person's salary, and will put it in a investment fund, that will be invested blue chip stocks or A rated bonds, with a guaranteed minimum rate of return, and you cannot touch this fund until you reach 65, or you need it for medical care, or housing.
1. Sounds like a Wall Street scam to pump billions of dollars into the stock market and artificially drive up stock prices. I know Singapore isn't Wall Street, but that doesn't prevent Wall Street from taking inspiration from Singapore. A similar idea has already been proposed in the US and rejected. Wall Street already has enough money. They don't need any more.
2. The people who can afford to invest are already doing so. Most of the people who do not currently invest are living hand to mouth, so where is this 40% of their income going to come from?
 

Isoroku295

Ad Honorem
Jan 2009
8,488
In the Past
This seems like a different form of Social Security.

Except you destroy tens of millions of lives since who the hiffle can give up 40% MORE of their income? Many people are living paycheck to paycheck, balancing the deficit with a few large paychecks, tax returns, and magic.
 
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aggienation

Ad Honorem
Jul 2016
9,749
USA
Great idea, if you're a politician. Take more money from the people they'll never actually get back. And create just one more retirement fund that can be raided for cash by greedy politicians looking for funding, like all previous retirement saving funds.
 

Isoroku295

Ad Honorem
Jan 2009
8,488
In the Past
According to intergoogles, total household income in the US is 13 Trillion USD. You are suggesting a 5.2 Trillion USD tax? You are suggesting ripping a quarter of the economy out to go into a savings account ran by the single most fiscally inept organization in the US?

Can't wait until THAT dessert runs out of sand.
 

aggienation

Ad Honorem
Jul 2016
9,749
USA
According to intergoogles, total household income in the US is 13 Trillion USD. You are suggesting a 5.2 Trillion USD tax? You are suggesting ripping a quarter of the economy out to go into a savings account ran by the single most fiscally inept organization in the US?

Can't wait until THAT dessert runs out of sand.
Only Big Brother can save you from yourself!
 
Jan 2008
50
I'm pretty much in agreement with some of the previous posters. The wealthy, and the upper middleclass, already have voluntary savings funds, in the form of individual retirement accounts (i.r.a.s). The working-class, and minimum-wage earners, pretty much live at subsistence-level, and have no money left over (after deducting taxes, health-insurance, and Social-Security contributions) to contribute to such accounts. Social Security itself is their retirement, and there's no additional savings.
 

aggienation

Ad Honorem
Jul 2016
9,749
USA
I'm pretty much in agreement with some of the previous posters. The wealthy, and the upper middleclass, already have voluntary savings funds, in the form of individual retirement accounts (i.r.a.s). The working-class, and minimum-wage earners, pretty much live at subsistence-level, and have no money left over (after deducting taxes, health-insurance, and Social-Security contributions) to contribute to such accounts. Social Security itself is their retirement, and there's no additional savings.
Nobody should be retiring off a minimum wage job. Those positions are for unskilled work, nearly always entry level, requiring almost no real ability or work ethic. Any skill remotely of value means more than minimum wage. Minimum wage jobs are a job to do temporarily to pay the bills while looking for a better job. Those that can't get out of them are those who will have many other problems in life far beyond the ability to save for retirement, for them life will be extra hard because life is really tough for stupid people. Because someone who has to spend a life in minimum wage jobs is either very lazy or very stupid.

FYI, the working class includes people making ridiculously high hourly wages as skilled tradesman. it doesn't mean low wage earners, nor does it mean poor, it just means fixed pay. Anyone making a salary/wage is working class, to include white collar. A 20 year old trained as a welder can easily make $100,000/year for their first job. I know police officers who pull in over $200,000/year with overtime as patrolman (lowest rank), they're working class too, you think they're hurting?

If you're in your 30-40s and haven't invested in your own retirement, you deserve everything that happens to you. Bad decisions are supposed to have consequences, that's how responsibility works.
 
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Jan 2019
130
USA
Nobody should be retiring off a minimum wage job. Those positions are for unskilled work, nearly always entry level, requiring almost no real ability or work ethic. Any skill remotely of value means more than minimum wage. Minimum wage jobs are a job to do temporarily to pay the bills while looking for a better job. Those that can't get out of them are those who will have many other problems in life far beyond the ability to save for retirement, for them life will be extra hard because life is really tough for stupid people. Because someone who has to spend a life in minimum wage jobs is either very lazy or very stupid.

FYI, the working class includes people making ridiculously high hourly wages as skilled tradesman. it doesn't mean low wage earners, nor does it mean poor, it just means fixed pay. Anyone making a salary/wage is working class, to include white collar. A 20 year old trained as a welder can easily make $100,000/year for their first job. I know police officers who pull in over $200,000/year with overtime as patrolman (lowest rank), they're working class too, you think they're hurting?

If you're in your 30-40s and haven't invested in your own retirement, you deserve everything that happens to you. Bad decisions are supposed to have consequences, that's how responsibility works.
I'm a project manager for a medical device company. We hire people out of the city who have to take two trains and a shuttle to get to work every day. The job consists of placing a label on a tyvek pouch. We pay them $12 an hour. Not much, but enough for them to continue making the trip. A lot of them have no prior experience in a manufacturing facility. We've promoted more than one to become a press operator out of that cell. It's a work ethic thing. These folks show up to work and put in the time every day.

After watching some of the crap these folks have to go through to work $12 an hour, I lost sympathy for those who complain about lack of government subsidy. There are opportunities out there for everyone, even those with criminal records. You just have to want to work and be motivated to finding a way.

If the government tried to take 40% of my paycheck for forced retirement.. LOL.