Americans have shown throughout their history an ability to make things better. If any one trait is more important than others it is their ability to “replace” the old with the new. As compared to some of the older societies who are slow to change and willing to “repair” their culture Americans regularly “replace” significant elements. The material success of this dynamic is clearly illustrated by the fact that their 4.5% of the world’s population produces and consumes 30% of the world’s goods and services.
We only wish our public sector worked better. American politicians have promised entitlement benefits they can’t deliver on using the same techniques older societies have voted themselves; techniques and policies of socialism that are rapidly bankrupting their governments. America is getting itself into such a mess with entitlements. $65 Trillion of unfunded liabilities taking up 80% of the Federal budget are projected in the future. Something has to be done.
There are two ways to fix things; “repair” or “replace”. Today the Congress of the United States is controlled by Democrats that want merely to “repair” entitlements. That is nothing more than code for raising taxes or reducing benefits. Even the advocate of personal accounts, President Bush stated in October “You've just got to slow the rate at which benefits are growing in order to make sure a future generation is not strapped with a budgetary system that is unaffordable.” More code for reduced benefits.
The American way is to “replace” that which is terribly broken with something bigger and better. The “repair” of our entitlements is merely kicking the can down the road for another Congress or another generation to solve while we slip farther and farther away from the solution “replacement” would bring.
In my new book, “Make the Poor Rich” I advance the proposition that “replacement” of these plans is necessary. Its implementation will do the opposite of raising taxes and reducing liabilities. It will massively reduce taxes and dramatically increase benefits. That is the American way; to make things bigger and better. We merely need to inform the public of these possibilities. We need to fix these problems the “American Way”.
Let’s replace the old Social Security and Medicare programs with new and better ones.