Coming Soon: Universal Savings?

Coming Soon: Universal Savings?

Just got off a briefing with OMB Director Pete Orszag. I asked him what part of the budget he was surprised hadn’t gotten more attention. His answer: universal savings. One of the central planks of the whole nudge crowd of behavioral economists is automatic enrollment in 401k’s. Turns out there’s a huge difference between participation rates in pension plans when people are automatically enrolled and when they have to proactively enroll. But as Orszag pointed out, most low wage workers don’t work at firms that even 401k’s, so automatic enrollment doesn’t help them. As part of the new budget proposal, almost every employer would have to automatically enroll every employee in an IRA. Only very small businesses would be exempt. This seems like a smart idea at first blush. And it’s perfect example of the Obama folks’ policy approach.

Some more thoughts on the budget TK.

UPDATE: Ben Smith has more.

Copy Link
Facebook
X (Twitter)
Bluesky
Pocket
Email

Just got off a briefing with OMB Director Pete Orszag. I asked him what part of the budget he was surprised hadn’t gotten more attention. His answer: universal savings. One of the central planks of the whole nudge crowd of behavioral economists is automatic enrollment in 401k’s. Turns out there’s a huge difference between participation rates in pension plans when people are automatically enrolled and when they have to proactively enroll. But as Orszag pointed out, most low wage workers don’t work at firms that even 401k’s, so automatic enrollment doesn’t help them. As part of the new budget proposal, almost every employer would have to automatically enroll every employee in an IRA. Only very small businesses would be exempt. This seems like a smart idea at first blush. And it’s perfect example of the Obama folks’ policy approach.

Some more thoughts on the budget TK.

UPDATE: Ben Smith has more.

Support The Nation’s June Fundraising Campaign

With the midterm elections now firmly upon us, the question is whether Democratic candidates will do more than merely occupy ballot lines as mild alternatives to the red-hot crisis that is Donald Trump.

As Trump spends over $1 billion a day on a globally destabilizing war on Iran and admits that he doesn’t “think about Americans’ financial situation,” millions across the country are struggling with the surging costs of essentials. Democrats must seize this moment and advance bold, small-“d” populist ideas—not settle for cynical caution that once again snatches defeat from the jaws of victory.

The Nation elevates progressive ideas, movements, and elected officials achieving real change across the country into the national conversation. At the same time, our journalists are exposing how crypto and AI-funded super PACs are spending hundreds of millions of dollars to knock out candidates they oppose, reporting on the devastating impact of the Supreme Court’s evisceration of the Voting Rights Act, and sounding the alarm on attempts by red states to quickly redraw electoral maps, disenfranchising Southern Black voters.

We can play this critical role because of support from readers like you. This June, we’re raising $20,000 to power The Nation’s independent journalism in the run-up to November’s immensely consequential elections.

It’s in our power to build a more just society, and your support at this critical moment brings us closer to that bold vision. I hope you’ll donate today.

Onward,

Katrina vanden Heuvel
Editor and Publisher, The Nation

Ad Policy
x