MyRA Morass

If the MyRA accounts the Treasury Department just rolled out are any indication, Obama ruling by fiat is just as messed up as not. In case you missed his announcement in the State of the Union last January, MyRA is an retirement account investing after tax dollars only in government debt (returning about 2% currently) with no minimum initial investment and no fees.

If this is a good deal, why don’t commercial investment firms offered it? Because it isn’t a good deal. That “no fee” thing is a killer for them. How can an investment program have no fees? It’s management is paid for by taxes—your and my taxes. Since Congress didn’t create the program, they didn’t appropriate money to pay for it. That’s done by juggling the books at the Treasury Department. Illegal? Probably, but since when has that bothered anyone in Washington?

The point is, those who are not buying IRAs or investing for their retirement now will be encouraged to start investing, even though they probably won’t. At 2% return? Unless, of course, Washington sweetens the deal. As Washington has a history of doing. Remember the Affordable Care Act? Did it create affordable care for anyone? Not for nearly as many as touted, but it, like MyRAs, is about social engineering, not care for health care or investing for retirement. Get folks dependent on the government, then pander to their votes.

This is not the sole realm of the Democrats. They’re just more obvious at the moment. The Republicans have their own constituency which they create “welfare” for.

Sound familiar?

Happy New Year. Nothing’s new in Washington.