NUCONOMICS:

Obama: Plan for upping savings rate (NIA-MALIKA HENDERSON, 9/5/09, Politico)

Obama said that to sustain long-term growth rather than to fuel "cycles of speculative booms and painful busts" would requrie Americans to save more, addding,"The fact is, even before this recession hit, the savings rate was essentially zero, while borrowing had risen and credit card debt had increased."

About 78 million people--or about half of all workers--don't have a retirement savings plan at work, and fewer than 10 percent of employees without work sponsored plans have retirement accounts of their own, according to White House figures.

"We have to revive this economy and rebuild it stronger than before. And making sure that folks have the opportunity and incentive to save – for a home or college, for retirement or a rainy day – is essential to that effort," Obama said. "If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement."

The changes will allow employees at small businesses to automatically enroll in 401 K or individual retirement account, make it possible for employees to convert unused vacation or sick days into retirement savings and allow tax filers to receive refunds as savings bonds. Senior administrative officials described those moves as immediate and administrative steps that don't require legislation--the IRS web site will offer information on the changes today.

That's thinkin' like a George W. Bush neconomist. Now, how about basing your health care reform on HSAs and adding partial privatization of SS and personal unemployment savings accounts?

Posted by Orrin Judd at September 5, 2009 7:09 AM