American workers saving and investing for retirement frequently monitor changes in stock market performance. In particular, they watch how market swings affect their 401(k) plans and IRAs (Individual Retirement Accounts).
Often, global events and trends have a significant impact on U.S. companies and their stock values.
Author and New York University professor Scott Galloway has a warning about one growing international problem that he views as a potential threat to U.S. prosperity and economic growth.
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Galloway describes how, in the eighty years following World War II, the partnership between the federal government, academic institutions, and private industry has driven unparalleled economic expansion and prosperity in the United States — outpacing every other nation in success.
Among the world’s ten most valuable companies, eight are headquartered in the United States. Federal government-funded research has been instrumental in driving numerous groundbreaking innovations, including the internet, GPS, mRNA vaccines, and Apple’s Siri.Â
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Galloway argues that instead of strengthening this legacy, the White House is actively dismantling it. The administration is undermining scientific progress and cutting research funding at universities, potentially leading to dire consequences — where the flow of knowledge could start to recede.
Meanwhile, global competitors, seeing an opportunity, are swiftly taking advantage, reminiscent of the era when German scientists fled to America during World War II.
Galloway warns that a transfer of intellectual firepower from the U.S. to other countries across the globe could harm American companies. For Americans counting on their 401(k)s and IRAs for income during retirement, a blow to the U.S. economy could negatively affect their financial future.
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Scott Galloway predicts a troubling economic outcome
One nation has been repeatedly accused by U.S. companies and government of intellectual property theft: China.
Fujian Jinhua, a Chinese competitor, was accused of collaborating with employees from a Taiwanese firm to unlawfully acquire Micron Technology’s dynamic random-access memory (DRAM) technology. Subsequently, Chinese courts prohibited Micron’s products from being sold in the Chinese market.
Tesla claims that a former engineer misappropriated its self-driving technology by uploading full copies of its autonomous driving source code and transferring more than 300,000 files, bringing the stolen data to a Chinese competitor.
“The Chinese government fosters an environment that condones theft of foreign
technology in strategically important sectors,” wrote the House Foreign Affairs Committee in a report.
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Galloway has a big prediction about how this behavior could change if China succeeds in recruiting talent from the U.S. — which could eventually impact the U.S. economy.
“Soon, China won’t need to engage in theft of U.S. intellectual property,” Galloway wrote. “It will become the primary source.”
The governor of Massachusetts, Maura Healey, has cautioned that “China is on our campuses right now” recruiting scientists and faculty members.
“That makes America less safe, less competitive, and has tremendous ripple effects for our economy,” she said, according to Galloway.
Related: Scott Galloway sends strong message on Social Security, Medicare
Scott Galloway’s warning aside, participating in 401(k) plans and IRAs remains important
Despite ongoing uncertainty in the global economy, U.S. workers continue to recognize the value of retirement savings tools such as 401(k) plans and IRAs, even in challenging market conditions.
Enrolling in an employer-sponsored 401(k) plan is an effective way to build retirement savings, particularly when employers offer matching contributions.
With automatic deductions taken from each paycheck, this method ensures consistent saving with minimal effort, making it both practical and efficient.
In 2025, the maximum contribution limit for 401(k) plans has risen to $23,500, up from $23,000 in 2024. Additionally, workers aged 60 to 63 can now make larger catch-up contributions — up to $11,250 — compared to $7,500 for those aged 50 to 59.
IRAs provide access to a broader range of investment opportunities that may not be available through a 401(k), which can be appealing to some individuals.
However, IRAs require more personal involvement, as individuals must set up the account and manage automatic contributions themselves. This extra responsibility may lead some to overlook its advantages.
For 2025, the contribution limit for IRAs remains at $7,000, with an additional $1,000 catch-up contribution available for individuals aged 50 and older.
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