HOUSE Resolution 67, which Donald Trump signed last week, rolls back a rule that the Labor Department finalised late last year, which would have made it easier for cities and counties to run retirement savings plans for citizens who couldn’t get them through work. It is an odd choice for Republicans to kill plans that would encourage private, voluntary, tax-deferred saving, whichthey tend to approve of. But a trade group for investment funds opposes the city-run retirement plans. The Democrats on Capitol Hill, beset with other problems, are not picking a fight. They should. The resolution itself is nothing more than a kick in the shins for the three cities, all run by Democrats, that had considered setting up plans—New York, Philadelphia and Seattle. But it points to a larger problem, which neither party has confronted. The United States has a retirement crisis, which it is treating like a savings crisis. They are not the same thing. In traditional macroeconomics, all saving serves the same purpose: investment in the capital stock, or new machines to make stuff. Workers either spend from their paychecks on rent and food, or put money away in bonds, shares or savings...Continue reading
Artigos Relacionados
- Labour hopes to cut net migration to around 200,000
- Tax break for businesses made permanent
- What the Autumn Statement means for you and your money
- Autumn Statement: Hunt denies tax cuts were pre-election giveaway
- Austerity warning for public services after tax cuts
- Barbie movie added £80m to UK economy and used 6,000 extras, Warner Bros says
- Interest rates expected to be held after small economic growth
- UK facing permanent higher taxes, IFS think tank says
- UK economy grew faster than estimated since Covid
- The deep rooted problem holding back the UK economy