The Genesis of a Right-Wing Conspiracy Theory

As the conservative movement heads relentlessly ever more towards the World Net Daily- black helicopter-Elvis-is-alive-and-stole-by-baby-and-gave-him-to-aliens territory, I see the beginning of a new conspiracy theory looming in the shadows. Take a look at this Investor's Business Daily op-ed, entitled "First, They Came For The Cypriots...".

The passage that caught my eye was this:

Already Congressional Democrats are plotting the expropriation of Americans' private 401(k) and IRA retirement savings accounts in favor of "a guaranteed income." If bank accounts can be casually expropriated in Cyprus to pay for big-spending governments and bailouts, there is no reason a nice slice of the $19 trillion in retirement accounts can't get the same treatment.

If it happens, it will signal the end of individual freedom and the return of feudalism.

I found it interesting that the "Congressional Democrats are plotting the expropriation of Americans' private 401(k) and IRA retirement savings accounts in favor of "a guaranteed income."" passage included no link. What EXACTLY are congressional Democrats "plotting" and is it really a tax on savings to finance a government bailout (the Cypriot example)?

Well, no.

As far as I can tell, there is no pending legislation on this front at all. I did a Google search on "guaranteed income legislation" and "401k replacement legislation" and several hybrids, and all I could come up with were stories about how the 401k instrument--which is not a constitutional provision, but instead created by an act of Congress in 1978--has not worked out very well. A variety of studies have shown that workers do consistently better with traditional company pension plans, that the average 401k nest egg is shockingly low, and that the tax incentives to encourage 401k contributions are not very effective. Finally, the only alternative I have seen even discussed are plans that require contributions and structure the program more like an annuity.

So at some point in the distant future, perhaps the tax incentives that support the 401k approach and be repealed and the 401k system might be replaced with another system that will require more savings into safer investments that guarantee lifetime income--sort of a  private supplement to Social Security benefits.

Is this "feudalism"? I don't think so. But then again, what about the fate of our precious bodily fluids?