Interesting opinion piece in the Wall Street Journal, explaining why Elizabeth Warren’s socialist vision of the economy would hit retirees the hardest, as it sinks the economy:
Yet among all the Democratic taxers and takers, no one would hit retirees harder than Sen. Elizabeth Warren.
Under this new Warren charter, companies currently dedicated to their shareholders’ interest would be reordered to serve the interests of numerous new “stakeholders,” including “the workforce,” “the community,” “customers,” “the local and global environment” and “community and societal factors.”
Eliminating corporations’ duty to serve investors exclusively and forcing them to serve political interests would represent the greatest government taking in American history. Sen. Warren’s so-called accountable capitalism raids the return that wealth provides to its owners, the vast majority of whom are present or near retirees. This subversion of capitalism would hijack Americans’ wealth to serve many new masters who, unlike shareholders, don’t have their life savings at stake in the companies that are collectivized.
If the bill were passed, retirement plans and investors could attempt to sell their stocks and find new investments where their money would still work for them. They could sell their shares in the large companies subject to Sen. Warren’s dispossession and buy into smaller companies with receipts below the $1 billion threshold, or look for investments abroad.
The problem is that everybody else would be trying to do the same. Investments built over a lifetime would be sold in a fire sale, with limited alternatives purchased in panic buying. While no econometric model could give a reliable estimate of the wealth destruction, no knowledgeable observer could doubt that an economic cataclysm would follow such a policy. “Accountable capitalism” would hit present and near-retirees first and hardest, followed by American workers and the rest of the economy.
This should scare you.