The US Labor Department is risking the retirement savings of millions of Americans. According to the new changes in the Labor Department’s laws, 401(k) funds of Americans will be used to promote environmental and so-called social justice causes.
Previously, investors were only allowed to use these funds to maximize the profit for the accountholders, but this will not be the case anymore.
Progressive Agenda Shattering Dreams of Safe Retirement
Until now, whenever your money was deposited in 401(k) accounts, your fund managers used to invest that money into the businesses where it was likely to give high profit.
However, the Department of Labor has now changed its laws, according to which your fund managers will be able to invest your money to promote a woke and progressive agenda.
This woke policy of the Biden administration is likely to put the retirement savings of many Americans at risk.
Once the new rules are applicable after January next year, fund managers will be able to invest your savings in so-called ESG ventures.
ESG are referred to businesses related to the environment, social justice, and governance. However, from a workers’ perspective, ESG stands for Expect Slow Growth, which means these businesses usually give low returns, compared to other businesses.
ESG = WOKE companies. Your investments thru your 401k can now be placed in these companies even if less return on your $.
ESG Funds in 401ks Cleared by New Labor Department Rule – 401(k) Specialist https://t.co/6leZdEz4Hq
— Dee 💯 🇺🇸 ☠️ (@Derameth) December 7, 2022
401(k) accounts are usually exempted from taxes.
So, Americans who do not want their money to be used to promote progressive policies will be required to withdraw their funds or reduce their savings. This will eventually lead to more tax burdens on people who do not want to be a part of Biden’s radical plan.
Under Trump’s presidency, the Labor Department was obligated to prioritize the financial aspects of any investments from 401(k) funds.
So, the government was not allowed to promote political agendas at the expense of Americans’ retirement funds. Biden’s Department of Labor changed this law, claiming the pursuit of profit may have dangerous effects on environmental and social justice causes.
This could have an impact on all of us.
— Cuomo Watch 🇺🇸 (@CuomoWatch) December 7, 2022
More Companies to Go Woke
Furthermore, Biden is trying to help promote unions in the American economy with the help of new 401(k) investment laws.
Currently, only 9% of American private sector workers are unionized. Once the new changes take effect, nearly $6.8 trillion present in 401(k) accounts all across America will be readily available to invest in union companies, while non-union companies will be deprived of this investment.
Eventually, many companies could succumb to progressive agendas in order to attract investment.
Meanwhile, legal experts suggest the new change in the Labor Department’s laws will be struck down by courts as soon as it is challenged.
This is due to the fact this law violates the Employee Retirement Income Security Act (ERISA), which was passed by Congress in 1974.
Per this Act, 401(k) funds can only be invested in the interests of the saver, but the Biden administration is clearly using the funds to advance a political agenda.This article appeared in TheDailyBeat and has been published here with permission.