POLITICS: New Study Finds American Workers Have Less Than A $1000 in Retirement Savings – USSA News

There is a new, troubling study on the financial status of most American workers. The National Institute on Retirement Security (NIRS) found that the median American worker has just $955 saved for retirement through defined-contribution plans such as 401(k) accounts. Given the expected job losses from robotics and AI, the study only deepens concerns about the economic and political pressures facing this country in the years to come.

In my new book, “Rage and the Republic: The Unfinished Story of the American Revolution,” I discuss those impacts from robotics and AI on our democracy. Using the most conservative estimates of job losses, the book explores how a large population of unemployed citizens will affect their relationship with the state.

We cannot maintain a “kept citizenship” while preserving the essential elements of the American republic. A large population of static, unemployed citizens poses challenges for what I call a “liberty-enhancing economy,” an economy that affords citizens independence from the state.

This study magnifies those concerns. If accurate, it suggests that even a short displacement in employment will return state support. Many jurisdictions are already launching Universal Basic Income (UBI) pilot programs. If this republic is to survive in the 21st Century, it will require developing new areas of “homocentric” jobs while avoiding predictable measures to subsidize positions that will inevitably be lost to robotics.

Notably, the study found that among those with positive retirement plans, median savings were much higher at $40,000.

Those with a defined contribution (DC) plan are far better off with an average savings of $179,082.

The takeaway from the report, for me, is the need to instill greater private savings. Some workers are barely paid above subsistence. However, we also need to educate citizens about the importance of setting aside retirement funds to the extent possible.

As I previously wrote, I am a great fan of the Trump Accounts. The $6.25 billion gift of Michael and Susan Dell (now augmented by dozens of corporations) could offer the single best hope for the survival of our system. Millions of young people will be able to experience the benefits of investments, savings and, most importantly, economic independence.

The study also shows the growing dangers of the collapse of the social security accounts. Despite assurances made when Congress established the system, Congress has continued to draw on Social Security funds to avoid reducing spending levels. The system could fail for these workers, who will not be able to draw upon money taken from their paychecks for the purpose of retirement. It is one of the most outrageous betrayals in United States history.

To this day, Democrats are opposing efforts to make major changes to guarantee the viability of the system for future generations, including the use of private investment accounts that could no longer be raided by Congress for easy money.

All politicians express alarm at the potential failure, but they attack any efforts to address the underlying problems as an attack on social security. As a result, we just drift toward this cliff knowing that most citizens have practically no other source of retirement support.