The flag of Hungary. Courtesy of Wikipedia.
Imagine if the federal government took your 401(k) in an attempt to save Social Security.
In Hungary this nightmare is a reality, as reported by the Wall Street Journal when the country’s economy minister first announced the plan in 2010.
Hungary has a complicated set of government pension schemes and mandatory savings, but it doesn’t look like things are getting any better. The reform plan has been criticized by Moody’s as “unambiguously negative,” according to Financial News.
A close analogy in the U.S. would be ending Social Security benefits for every American who refused to turn over his 401(k), IRA and other retirement assets, including pensions from his employer.
It’s doubtful such a crazy idea is on anyone’s mind in Washington right now. But if they don’t do anything to fix Social Security before it goes bankrupt in 2037, seizing retirement assets might not seem all that radical.
Raising Hale is bringing back It could happen here, a feature that has been dormant for a while. Each Friday, Raising Hale will highlight one crazy thing from the latest headlines that could happen in Connecticut. To suggest a topic, contact Zach.
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