Californian Democrats want to institute a state-run pension program for private workers, too. Senate Democrats have introduced SB1234, requiring private employers with five or more employees to enroll them in this boondoggle, “what they have termed a ‘personal pension program’ to be run by a state board.”
There are so many different ways that this is a bad idea. First, how can anyone with a brain look at our Social Security system and think it is worthy of imitation? It’s bankrupt. It’s created a dependency on government which will get very ugly when the checks eventually stop coming. It conflates retirement savings accounts with welfare. And most importantly, it’s bankrupt! Already written, but bears repeating.
I can just see the devolution of this program. California will first make it optional for those Taco Bell employees without 401ks to contribute to this state-run pension fund. Then it will become mandatory for those making over a set amount. Then mandatory for everyone. California will “borrow” these funds for its general budget, filling Californians’ pension trust funds with worthless IOUs. California defaults on its obligations, making this program just another useless tax on California and producing nothing of value.
And I don’t even want to think about how much money will be wasted running this program. Government is just one giant slush fund.
Hopefully SB1234 won’t get passed. But this is California. So that is probably hoping too much.