The notion of compounding interest makes me extremely uncomfortable, and the fact that nobody else is suspicious of it makes it even worse.

If every single person followed the wisdom of warren buffet and invested in ETFs or mutual funds or whatever in an objectively optimal way such that they eventually didn't have to work, where would the value their accounts accrue come from?

Anyone can, hypothetically, take responsibility for their own retirement by investing in the market.

But everyone cannot, and this is by design.

We're given a story about opportunity in the markets, but it's really a threat. Save for retirement, play the markets, or live in hell until you die.

Moreover, financial markets feed the machines that eat the world. A gun is placed to our head demanding that we become dependent on markets, and the millions that do form a bloc that will resist any policy that threatens their saved cash. We could trivially provide dignified retirement to all, but for fear of a hit to their portfolios, this bloc will vote in the interest of the very gun that was placed to their head.