As it turns out, Elizabeth Warren's Social Security expansion proposal is not the only one of her plans to affect Americans' retirement well-being.
The proposal of hers which will affect Americans' retirement savings, in their 401(k)s and their IRAs and the funded status of their pension plans, is tucked away in a component of her platform with the harmless-looking title, "Empowering Workers Through Accountable Capitalism."
This is fine for Yglesias because, he claims, it's only the ultra-rich who own stock: the richest 10% own 81.4% of the stock market, and the top 1% own 38% of the stock market wealth.
The study he derives these figures from focuses exclusively on household wealth based on a government survey, the Survey of Consumer Finances, so it excludes from its calculations "Wealth" owned by individuals in the form of promised future pension benefits, and takes no interest in the amount of stock market wealth owned by nonprofits or other institutions.
Take a look at the estimates from Pensions & Investments: 80% of stock market equity is held by institutions: that means, mutual funds, pension funds, 401(k)s, and the like.
In particular, 37% of stock is owned by retirement accounts; when subtracting out foreign owners of US stock, 50% of US-owned US equities are owned within retirement funds.
It should go without saying that there is no way to "Punish" the wealthy by causing the value of only the stock they own to go south while somehow protecting the 401(k) and other retirement accounts for the rest of us.
https://www.forbes.com/sites/ebauer/2019/09/21/elizabeth-warren-wants-to-cut-the-value-of-your-retirement-account/#2dbe3e697686
The proposal of hers which will affect Americans' retirement savings, in their 401(k)s and their IRAs and the funded status of their pension plans, is tucked away in a component of her platform with the harmless-looking title, "Empowering Workers Through Accountable Capitalism."
This is fine for Yglesias because, he claims, it's only the ultra-rich who own stock: the richest 10% own 81.4% of the stock market, and the top 1% own 38% of the stock market wealth.
The study he derives these figures from focuses exclusively on household wealth based on a government survey, the Survey of Consumer Finances, so it excludes from its calculations "Wealth" owned by individuals in the form of promised future pension benefits, and takes no interest in the amount of stock market wealth owned by nonprofits or other institutions.
Take a look at the estimates from Pensions & Investments: 80% of stock market equity is held by institutions: that means, mutual funds, pension funds, 401(k)s, and the like.
In particular, 37% of stock is owned by retirement accounts; when subtracting out foreign owners of US stock, 50% of US-owned US equities are owned within retirement funds.
It should go without saying that there is no way to "Punish" the wealthy by causing the value of only the stock they own to go south while somehow protecting the 401(k) and other retirement accounts for the rest of us.
https://www.forbes.com/sites/ebauer/2019/09/21/elizabeth-warren-wants-to-cut-the-value-of-your-retirement-account/#2dbe3e697686
No comments:
Post a Comment