Blink and you missed it. Last week’s presidential debates finally got around to mentioning the country’s retirement system, and specifically 401(k)s (not counting Marco Rubio’s contribution to retirement leakage). Directed to former Hewlett-Packard head Carly Fiorina, the exchange with CNBC’s Sharon Epperson was short but surprising for Fiorina’s answer and assessment. In essence, she told government to leave retirement alone.
Here’s the pertinent back-and-forth.
SHARON EPPERSON: Mrs. Fiorina, you were the CEO of a large corporation that offers a 401(k) to its employees. But more than half of American have no access to an employer sponsored retirement plan.
That includes the workers at small businesses, and the growing ranks of Uber drivers and other part-timers in the freelance economy.
Should the Federal Government play a larger role in helping to set up retirement plans for these workers?
CARLY FIORINA: No, the Federal Government should not play a larger role.
Look, every time the Federal Government gets engaged in something it gets worse. And then the Government steps in to try and solve the problem and we get a little further down to that progressive vision that Hillary Clinton is talking about.
Companies should, if they want to attract the best workers, provide a good set of benefits. But honestly, if you’re a small business owner today you are being crushed. We have 400,000 small businesses forming every year in this country. How great is that? They are employing themselves, they are potentially employing others.
The bad news is, we have 470,000 going out of business every year. And why? They cite Obamacare.
They are refusing to…
EPPERSON: So you wouldn’t agree — you wouldn’t agree with a start for 401(k) for businesses or anything like that?
FIORINA: I think it’s a wonderful that that businesses start a 401(k). The point I’m making is this, the Federal Government should not be in a lot of things.
There is no Constitutional role for the Federal Government in setting up — retirement plans. There is no Constitutional role for the Federal Government to be setting minimum wages…
EPPERSON: Thank you very much.
FIORINA: … The more the Government gets engaged in the economy, the slower the economy becomes. The more the Government gets engaged in the economy, it is demonstrably true…
EPPERSON: Thank you, the rules say one minute.
FIORINA: … The more the big, the powerful, the wealthy and the well-connected are advantaged.
EPPERSON: Thank you, Ms. Fiorina. We appreciate it. Thank you, thank you.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
