One of the problems with representative democracy is that elected officials tend to be unable to see past their next election campaign. Hence, long term solutions are kicked down the road in the name of political expediency. The New York Slimes rationalizes the urge to sabotage 401(k) retirement account for no long term financial benefit to the taxpayers:
Mr. Trump’s tweet concerned one of those accounting maneuvers, which would have allowed Republicans to effectively borrow tax revenues from the future to offset some rate cuts today. Reducing 401(k) contribution limits would force retirement savers to pay more in taxes today, as they sock away money, but less in the future, when they began withdrawing retirement funds tax-free.
More taxes now, less taxes latter, and reduced retirement benefits down the road. The government does not win, but responsible retirees lose. Bad idea.
Hat tip and reax, the Pundit from Poca, Don Surber [1]:
Back in 1986, I signed up and went full in on stocks. I looked at the 30 year picture.
People told me the market might crash. It did the next year. It came back.
I never wavered, even when the market crashed upon the election of Barack Obama in 2008. Remember, the S&P fell 16% in his first six months as president. I saw it as a buying opportunity
Alas if only the political class could have been as smart back in 1986 as Mr. Sur4er was.