Truly frightening. Not only do they want to eliminate the tax deductability of 401(k) contributions, but they want people to divert those contributions to the (going bankrupt) social security system, for a tiny 3% return and a small bump in your social security payment. How long will it be before they're calling for people to surrender their balances entirely?

I can see the headlines in two years: "After years of massive foreclosures and housing price declines, Teresa Ghilarducci proposes everyone surrenders their home to the government, in exchange for a guaranteed lifetime spot in a government-provided housing unit."

We're on a slippery slope to an Orwellian society here.