The myRA is another Democratic program to plunder what is left of the middle class. The only thing remarkable about what has transpired in the past five years is that the middle class has voted repeatedly to commit suicide.
The Democrats are laughing all the way to their power bank, because the only thing that will accrue here is more political power from a voting bloc that is too gullible to catch on to how they are being fleeced.
The actual financial effect of the myRA is to reduce the wages of the participants and increase the revenue to the U.S. Treasury. Like Social Security, those wages are transferred to those in power to pay off cronies and buy more votes.
The myRA contributions go to a Government Securities Investment Fund-like trust fund. Like the Social Security trust fund, this fund will hold nonmarketable debt. It is more nonpublic debt, and the interest rate attributable to it is purely fictional.
It is advertised to be equal to the average rate of public debt, but this is arbitrary. It could be just as easily half or double that of the public, tradable government debt.
The real value of the nonpublic debt could only be ascertained if it were sold. The nonpublic debt is about $6 trillion at the moment.
What value and corresponding rate of return would you obtain if it were sold today? What value do you think you would get for your house if 40 percent of U.S. housing stock went on the market in one day? Half, a quarter, or more like zero?
It is more like zero, and that is what is being handed to the suckers signing up for the myRA. Like Obamacare, the myRA is another way to fleece people who work.
The myRA is remarkable because it provides a return, assuming it is paid, that is lower than Social Security. There is no adjustment based on wage growth, and inflation as reflected by the consumer price index is a gamble.
Social Security is bad enough, but the myRA is just another nail in the coffin for those gullible enough to submit to it.