Massachusetts Senator and Democratic presidential hopeful Elizabeth Warren plans to implement something that will wreck your dreams of having an amazing life after retirement. It is obvious how Warren has a grudge towards capitalism and this plan just shows how much she detests it and in what way it will affect your future.
The "Accountable Capitalism Act" proposes to make large companies, such as corporations, to pursue the best interest of everyone; from shareholders all the way down to the employees, schools, suppliers and local community. This aims for the fundamental premise that corporations “shall have the purpose of creating a general public benefit.”
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While the definition of "public benefit" is debatable, the hypothetical act is still blurry and will impact taxpayers greatly. For one, the act proposes to force all corporations with more than $1 billion in revenue to staff up at least 40% of their board directors with representatives that will be voted on by their employees. Board members aren't generally voted for, they are simply major stockholders who focus on maximizing corporate revenue in order to have a big return of investment for shareholders.
If this act comes to plan, this will affect the average voters and their retirement investment accounts such as the 401k. If the large companies get a 25% hit, less money will stay in the company funds, creating a dent on employees' retirement investment accounts. After all, everyone's benefiting and the amount of money that workers receive get will go down should this act pass as a bill. That's not all, the companies will also have to lay off workers instead of hiring more.
This is basically a plan to turn companies into social service offices and that is a recipe for disaster. Private companies are meant to make a profit, which in turn produces jobs and create wealth. You have to keep that in mind in the next debate, and the general election since Warren is coming out as a strong contender.