Entries in ALG (1648)
"If Americans are forced to buy government bonds as retirement savings, the nation could be forced into a situation where it will become impossible to reduce or retire the national debt without liquidating the retirement savings of millions of Americans."—ALG President Bill Wilson.
Legislation could force investment in U.S. treasuries to finance debt-strapped government.
September 7th, 2010, Fairfax, VA—A new bill proposed by Senators Jeff Bingaman and John Kerry would force enrollment in "automatic Investment Retirement Accounts", prompting Americans for Limited Government (ALG) President Bill Wilson to urge the Congress to reject it.
"This legislation will force Americans into a government-mandated, 'one size fits all' retirement account," Wilson said, adding that it would "disproportionately impact younger and lower-income workers, who will now have less ability to save for new home purchases or pay off college expenses and debt, all of which occurs earlier in a worker's career."
"This is another attempt by government to tell individuals what they have to do with their own money, stripping them of the right to make their own personal investment and life decisions," Wilson added.
Wilson noted that the "investment 'options' that are offered will be defined arbitrarily by the Department of Labor in regulation."
Those options may include government bonds, writes Jerome Corsi for World Net Daily: "The U.S. Department of Labor released yesterday an agenda for an upcoming joint hearing with the Department of the Treasury scheduled for Sept. 14 and 15 on whether government life-time annuity options funded by U.S. Treasury debt should be required for private retirement accounts, including IRAs [Investment Retirement Accounts] and 401(k) plans."
The Corsi report describes the potential that the "government-mandated workplace retirement account would require by law employers and employees to contribute into a retirement account for every employee and demand that a portion of that contribution go into a federal-government created annuity that would be funded by purchasing Treasury debt."
"Under the law, the Department of Labor could indeed force individuals to buy treasuries, if that's what the bureaucracy wants," Wilson said, pointing to the broad options defined in a newly proposed Section 439 of the Internal Revenue Code:
"(c) INVESTMENT OPTIONS.—
"(1) IN GENERAL.—The Secretary of Labor and the Secretary, in consultation with the Chair
man of the Securities and Exchange Commission, shall, not later than 18 months after the date of the enactment of this section, prescribe regulations which set forth the requirements for each of the classes of investments described in paragraph (2) and procedures for determining which assets meet the requirements for each of such classes.
"(2) INVESTMENT CLASSES.—The regulations under paragraph (1) shall provide that an automatic IRA shall allow the individual on whose behalf the individual retirement plan is established to invest contributions to, and earnings of, the plan only in the following investment options:
"(A) PRINCIPAL PRESERVATION.—A class of assets or fund that is designed to protect the principal of the individual on an ongoing basis, including passbook savings, certificates of deposit, insurance contracts, mutual funds, United States savings bonds (which may be indexed for inflation), or similar classes of assets.
"(B) BLENDED INVESTMENT OPTION.—A broadly diversified class of assets or fund, as specified in such regulations, that is substantially similar to target date, life cycle, balanced or similar funds, as so specified.
"(C) THIRD OPTION.—A broadly diversified class of assets or fund providing a somewhat higher investment in equities than the investment options under subparagraph (B), as specified in such regulations."
"These 'options' are so broadly defined that the Department of Labor can force investment into almost anything, leaving the future solvency of the retirement savings of millions of Americans to the wisdom of faceless government bureaucrats," Wilson said.
Such legislation could create some 60 million potential new IRAs, according Mark Gutrich, president of Denver -based ePlan Services. Wilson said that if accurate, and if the average income investing in the IRA's was $50,000, "if just 1 percent of income for these new IRAs was devoted to government bonds, that would expand government's ability to borrow by $30 billion annually, or by $300 billion over ten years."
Wilson said "that's no small chunk of change." He predicted that after the legislation was enacted, the number of new plans would grow beyond the 60 million, and warned that the investment in treasuries would also grow "should the sovereign debt crisis worsen in the U.S."
"If Americans are forced to buy government bonds as retirement savings, the nation could be forced into a situation where it will become impossible to reduce or retire the national debt without liquidating the retirement savings of millions of Americans. That may be what the government has in mind to protect its bloated budget," Wilson said.
"By increasing the American people's stake in the government debt, the incentive will always be to expand the national debt to finance retirement benefits," Wilson concluded.
"This past month marks the 15th straight month of unemployment at 9.4 percent or higher."
—ALG President Bill Wilson.
Obama's Economic Stimulus/Recovery Summer fails in Wisconsin
September 3rd, 2010, Fairfax, VA—A special Americans for Limited Government (ALG) report looks at Wisconsin for a special Labor Day Weekend edition in honor of President Obama, Labor Secretary Solis and AFL-CIO Boss Richard Trumka gracing the state of Wisconsin with their presence on Labor Day. Obama's big government economic stimulus program has failed so miserably that Sen. Russ Feingold is scurrying out of Milwaukee to avoid a joint appearance.
As this might be a topic you find interesting, ALG put together some unemployment and stimulus information for the state of Wisconsin. Ironically, the President's much-promoted Recovery Summer resulted in zero "employment producing" Stimulus Programs in Wisconsin.
"This past month marks the 15th straight month of unemployment at 9.4 percent or higher," says Bill Wilson, president of ALG. "Clearly, Obama and Feingold's big government economic solution has failed."
ALG President Wilson also noted the irony of Obama proposing tax cuts on the heels of his signing a job-killing corporate tax hike that was hidden within the $26.1 billion state public employee union bailout.
"Obama's policies have effectively choked the private sector economy through higher taxes and more regulatory costs," says ALG's Wilson. "It is unbelievable that two months before the upcoming election he would suddenly try to pass himself off as a tax-cutting President. Unlike when he was candidate Obama, the President now has a record that is anti-free enterprise and is more interested in propping up his big labor allies then helping the average working American."
Obama's big government economic solution has failed
September 3rd, 2010, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following status on the worsening unemployment situation in the U.S., with the rate rising to 9.6 percent and underemployment rising to 16.7 percent:
"When the $862 billion 'stimulus' passed, Barack Obama falsely promised that unemployment would not rise above 8 percent. It's been 20 months since Obama took office, and unfortunately, it's been 16 straight months where unemployment has been at or above 9.4 percent. All of this is evidence that Obama's big government economic solution has failed.
"After over $2 trillion in fiscal and monetary 'stimulus' the economy is stuck in a web. Unemployment is once again rising, growth is anemic at only 1.6 percent, and after three years housing still cannot find its bottom thanks to government propping up the market.
"The American people don't want excuses, they want jobs. Now they want nothing more than government to get out of the way of the private sector. All the White House has to offer, with the statement of outgoing economic advisor Christina Romer, is 'more spending'. More debt is not the answer. Expansive government is not producing more jobs, it is misallocating resources away from the private sector, and into government debt.
"Now is the time for enduring tax relief, including reducing the corporate tax rate, now the second highest in the world, and making the Bush tax cuts permanent. Now is the time to begin to reduce and retire the debt, bring an end to the useless paper trade that is costing Americans their livelihood, and get the government out of the housing, health care, and financial sectors of the economy. Government has had its chance. Now it's time to let the people have theirs."