A retirement account allows you to save your money before it gets taxed. If you take your money home, you have to earn about $1 to see 75 cents in your paycheck. But if you put that dollar into a retirement account instead, you get to deposit the entire $1. New Africa/Shutterstock
President Donald Trump and Congress want to help you increase your savings. And you should. At the household level, saving is the foundation of financial security and the seed capital for a better retirement. At the economy-wide level, savings fund investment that expands the capital stock, raises wages and grows the economy. A society that does not save is a society slowly consuming its future.
Veronique de Rugy, Ph.D., is a senior research fellow at the Mercatus Center at George Mason University. She has testified numerous times in front of Congress on the effects of fiscal stimulus, debt, deficits, and regulation on the economy. Previously, de Rugy has been a resident fellow at the American Enterprise Institute, a policy analyst at the Cato Institute, and a research fellow at the Atlas Economic Research Foundation.
