Lame Duck Threat to Bailout Union Pensions

-By Warner Todd Huston

Connie Hair has an informative piece at Human Events about what Democrats are hoping to do in the next few weeks in this lame duck session by pushing another big union bailout.

In October, Sen. Tom Harkin (D, Iowa) heard witnesses advancing the "Guaranteed Retirement Account" (GRA) idea authored by left-wing activist and purported "labor economist" Theresa Guilarducci. As an aside, Guilarducci being called an "economist" is an hilarious conceit. She is nothing of the kind but is merely a big labor activist disguising herself as an "economist."

Anyway, the Democrats would love to slip this budget busting nonsense past the American people in this zombie congress. Here is how Hair defines the policy:

In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a "fair" pension to everyone using that confiscated money coupled with the mandated contributions. This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending.

Pro-marketeers are worried that this dead-man-walking congress will try to attach this thing to another bill in order to push it through at the last second quite despite what voters want.

Of course this is yet one more big government boondoggle meant to pay off unions for spending millions on electing Democrats and little else. It certainly makes no common sense or economic sense.

The sooner these people get out of Washington the better.

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