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submitted 7 months ago by MicroWave@lemmy.world to c/news@lemmy.world

Greased by lobbying and campaign cash, tax breaks for retirement savings are one thing Congress agrees on. But they also blow out the deficit and add to income inequality.

Five months before Congress faced a near-catastrophic standoff over the debt ceiling, with Republicans demanding restrictions to food and Medicaid programs to rein in spending, a bill that raised the cost of private retirement savings accounts to $282 billion per year was quietly signed into law.

In this era of deeply divided politics, the 2022 bill known as Secure 2.0 was hailed as a bipartisan success — a victory for average Americans. It had sailed through the House by a whopping 414-5 vote. It followed four other major bills passed between 1996 and 2019 that dramatically expanded taxpayer savings – all equally lauded as bipartisan victories.

But that rare issue that brought a divided Washington together also increased wealth disparities and the federal deficit. And the victory was most strongly applauded by the burgeoning financial services industry, for whom tax-advantaged retirement savings has transformed a $7 trillion retirement market in 1995 to a $38.4 trillion behemoth in 2023.

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[-] FlyingSquid@lemmy.world 18 points 7 months ago

We were talking to my daughter about this just yesterday. It's not even groceries. People think that if you spend $30 or $40 a month on things that make you and those you love happy, you'll never save enough to make yourself marginally more comfortable in the last 10-20 years of your life (if you're lucky) that will be uncomfortable no matter what.

So I suppose maybe if I denied myself and my child every pleasure in life, sure, I could put money in a 401(k). That is not something I would do and I certainly do not think it's a good lesson to teach a child. I'm sure someone will call that some sort of "live for today" or YOLO attitude rather than not giving your child the most miserable childhood you can.

[-] ampersandrew@lemmy.world 23 points 7 months ago

So I suppose maybe if I denied myself and my child every pleasure in life, sure, I could put money in a 401(k).

But that's unproductive hyperbole. Not every pleasure in life costs money, and lots of things you spend money on can be optimized. And even after doing that, if you still feel too squeezed, it might be worth considering a career change and a plan for how to get there.

[-] FlyingSquid@lemmy.world 10 points 7 months ago

It might be unproductive hyperbole, but I've been told that exact same thing more than once right here on Lemmy.

[-] QuarterSwede@lemmy.world 23 points 7 months ago

Sounds like you have an axe to grind. Sorry life has been hard for you friend. Hope it gets better. Hang in there.

[-] protist@mander.xyz 22 points 7 months ago

You were telling your daughter that you're spending $30/mo on her to make her happy instead of saving it for your old age? I don't know how you communicated that, but on the surface that does not sound like a healthy thing to tell a child.

If you're worried about providing your daughter a fulfilling childhood, maybe also consider prioritizing time with her? You spend a lot of time on Lemmy dude, is that time you could be spending with her? Or are you on your phone a lot when you're with her?

[-] FlyingSquid@lemmy.world 13 points 7 months ago

Do you think that maybe you don't pay attention to what actual times of day I'm on Lemmy vs. when I'm not on Lemmy and think that maybe I spend those times with my family?

I'm here a lot because I'm currently very sick (I recently got back from the Mayo Clinic). I suppose that's my fault?

[-] protist@mander.xyz 9 points 7 months ago

No, I've never paid attention to when you're online, I just see you average 100 comments and posts per day. I still think telling your daughter that you're spending $30/month on her instead of saving for retirement is not healthy.

[-] FlyingSquid@lemmy.world 6 points 7 months ago* (last edited 7 months ago)

I know a lot of people taking care of their elderly parents. I have yet to meet one who says they regretted their parents buying them toys. Do you know any?

Also, as I already said, I am on Lemmy a lot because I am very sick and have nothing else to do most of the time.

[-] protist@mander.xyz 4 points 7 months ago

You're misunderstanding my point. I'm saying it's not healthy to tell your young child explicitly that you're making this choice between buying them a toy or saving for retirement. This conversation started with you saying you just had that conversation with your daughter yesterday.

[-] FlyingSquid@lemmy.world 4 points 7 months ago

Do you think the conversation was literally "I'm making a choice between buying you this toy and saving for retirement?" For one thing, she's almost 14.

[-] protist@mander.xyz 5 points 7 months ago

Egad man, what is happening in your head

[-] FlyingSquid@lemmy.world 4 points 7 months ago

Here is what is happening in my head.

You said:

I’m saying it’s not healthy to tell your young child explicitly that you’re making this choice between buying them a toy or saving for retirement.

I agree. But I don't have a young child anyway.

This conversation started with you saying you just had that conversation with your daughter yesterday.

That was not the conversation we had.

I hope this clears things up.

[-] protist@mander.xyz 2 points 7 months ago

You should probably go up top there and change where you said "I just had this conversation with my daughter yesterday"....

[-] FlyingSquid@lemmy.world 3 points 7 months ago

I did not say that. That is false. This is what I said and this is it in context:

In other words, I was talking to my daughter about people who think you should invest money rather than buy groceries.

Once again, I hope this clears things up.

[-] protist@mander.xyz 4 points 7 months ago

Not even a little 😕 Who exactly is telling you to invest your money instead of buying groceries?

[-] ripcord@lemmy.world 3 points 7 months ago* (last edited 7 months ago)

The only person I've seen attempting to make that argument in this thread is you. It's been a really weird strawman thing.

this post was submitted on 14 Apr 2024
297 points (100.0% liked)

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