Workers should be allowed to spend their money freely
John Darby’s opine in the June 14 Another Voice about “mandatory savings” had one good point (i.e., forgo Starbucks), but many assumptions and dogmas that are not realistic in the current economy we have need to be corrected.
Jobs that pay less than $35 per hour usually have 25 percent in taxes, so for $70,000 in income, that would relate to $17,500 going to governments, which means that that money is already gone from the employee.
In today’s job market, no job or career will be lasting 46 years, except for farmers and politicians, though the latter is a separate matter of restricted choice.
To Mr. Darby, I would ask: How would mandatory saving and restricting withdrawal be enforced? If it is mandated by the company, people just won’t work for that company because they don’t like being told what to do and how to do it. That’s not capitalism, that’s despotism.
Another assumption is that all people working will have the same view of success/retirement. Everyone who has a vision will see something different.
Should we wean people off of Social Security? Absolutely. But it has to be taught to people, not mandated against their will to be the chosen course of action. Of course, then markets will change to reflect this and new problems will then arise, which will need new solutions.
Add in dynamics of family building that is taking place later in the lives of millennials and Generations X and Y. Why is that? People are now afraid of making mistakes in life, love, job, career, and then all the other things pile on.
Should there be investment? Yes. Should it be mandatory? Not in the least. That would mean that each one determines his success.
Kenneth M. Boser II