These are a few reasons why I called this law unjust and stupidly drafted. There is a further important point in connection with the compulsory saving provided by the plan of the present administration. According to this plan, our workers are forced to save for a lifetime. What happens to their savings? The administration’s theory is that they go into a reserve fund, that they will be invested at interest, and that in due time this interest will help pay the pensions. The people who drew this law understand nothing of government finance…
…Let me explain it in another way—in the simple terms of the family budget. The father of the family is a kindly man, so kindly that he borrows all he can to add to the family’s pleasure. At the same time he impresses upon his sons and daughters the necessity of saving for their old age.
Every month they bring 6 per cent of their wages to him so that he may act as trustee and invest their savings for their old age. The father decides that the best investment is his own I O U. So every month he puts aside in a box his I O U carefully executed, and, moreover, bearing interest at 3 per cent.
And every month he spends the money that his children bring him, partly in meeting his regular expenses, and the rest in various experiments that fascinate him.
Years pass, the children grow old, the day comes when they have to open their father’s box. What do they find? Roll after roll of neatly executed I O U’s.
I am not exaggerating the folly of this legislation. The saving it forces on our workers is a cruel hoax.