President Trump asked American workers Tuesday “How’s your 401(k) doing?”
With the backdrop of the “tax cut” that really isn’t for many middle class Americans, the president was trying to put a band-aid on the plan by saying you have a windfall with profits from the stock market.
According to the latest numbers, 14% of companies in the US offer a 401(k) for their workers, which translate into roughly 54 million workers contribute to their 401(k) plans.
Looking at the macro, the 54 million accounts for roughly 30% of the US workforce, according to the Bureau of Labor Statistics.
Another view suggests 401(k) plans represent only 19% of the $26.6 trillion in retirement assets in the country (which includes pensions and individual retirement accounts, as well as annuities), according to the Investment Company Institute.
I would suggest given the data points above that a vast majority of Americans living outside the large cities — Trump’s base support — cannot say they are winners when you mention 401(k) plans.
I believe the converse is true. Large cities are predominantly Democratic, left-leaning communities with large corporations offering retirement plans for their workers. So the majority of workers who could answer the president’s question in the affirmative, actually can’t stand him as a leader.
Ironic, isn’t it.