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Riassunto: The U.S. Budget deficit is skyrocketing. The U.S. income tax system is broken beyond all repair. The Social Security Trust Fund will probably be in deficit by 2017, if not sooner. Healthcare costs are out of control. Welfare reform has been effectively reversed with the passage of the 2009 economic stimulus bill. The U.S. economy, the value of the U.S. dollar on world markets, and U.S. prestige in the international community are all drastically reduced and falling.
This book proposes a set of action plans to use inexpensive, free-market solutions to fix all of these things by doing the following:
If you have ever thought that a bit of common sense and basic logic was lacking in the area of US economic policy making, regardless of which political party was in the majority, I am right there with you. Whether it's Newt Gingrich's Jobs Here, Jobs Now program, Paul Ryan's Roadmap for America's Future, BBANow.orgs spending cap based on GDP, or Obama's healthcare or stimulus programs, all of them are either too little too late, or are riddled with inconsistencies if not outright fatal flaws. I thought it should be possible to come up with a simple, workable economic plan that actually fixed the chronic problems that have afflicted our country for so long. At the very least, I doubted I could do much worse.
This book is based on the premise that solving the budget problem first would facilitate all the other reforms. Nearly every one of the chronic problems we have with taxes, social security, healthcare, and welfare in this country was either caused or prevented from being fixed by the failure of the federal government and the states to spend within their means. Furthermore, with the national debt approaching 100% of GDP and unfunded obligations over $100 trillion, merely balancing the budget each year will not be enough. We would need to have surpluses in most years for the foreseeable future. Furthermore we need to do it in a way that doesn't depend on either predictions of ever higher federal receipts each year or raising taxes.
Deficits are not a tax and revenue problem; they are a spending and cash flow management problem. By properly managing current-year spending, it is possible to achieve surpluses in most years, reduce(and eventually abolish) the income tax, rescue Social Security, and create a performance-based welfare system. The budgeting solution presented herein should be recognizable to anyone who has ever had to make ends meet for a business or household. As any of the many people who have had to dig themselves out from under a mountain of debt know, the hardest part would be getting started, particularly the first year or two. But it would get easier and easier after that as the problems were actually solved and the inherent costs of chronic debt, overspending, wasteful entitlements, and high taxes were worked out of the system.
With a sensible budget system in hand, the solutions to the problems in the tax system, pension system, healthcare, and welfare systems practically devised themselves. The focus is on redesigning economic policy to allow people of all incomes to more easily amass their own personal capital base from which they can afford to create a personal safety net of their own to which they, and not the federal government, have full legal title, including a retirement pension, healthcare, health insurance, and a robust safety net in the event of economic or physical hardship.
If you want to see just what a non-partisan, practical, common sense, internally consistent economic policy looks like, read this book.
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