Uncaring Republicans?
I always take great offense when Republicans are portrayed as uncaring or not as concerned about the less fortunate. Republicans simply have a different methodology. It is easy and tempting to throw money at every problem or create a new entitlement program to attempt to level every playing field. Unfortunately, that approach often does little to solve the problem and a lot to bloat the size of government and put us further down the road to ruin—ultimately hurting the intended beneficiaries most. We would be better served if the government was a facilitator, rather than a money disseminator.
For example, consider Social Security. Today, there are roughly 3.3 workers for each beneficiary. In 2034 there are projected to be 2.1. When Social Security was enacted in 1935 there were over 40 payers for each recipient. Social Security currently constitutes 37% of government expenditures and 7% of GDP. No doubt, when it was first instituted, there was no thought that it would consume anywhere near this percentage of our national resources. Unfortunately, that is the recipe for most such programs. They simply do not contemplate the long-term consequences. No country, even one as rich as ours, can survive that type of ever-increasing burden.
So, what is the solution? How do we protect ourselves from becoming an entitlement society and thus on the fast track to national financial insolvency and the destruction of our very way of life? Remarkably, Bush has it exactly right. We need to transition into an ownership society. Not just with Social Security via private accounts, but also with health care and retirement accounts (e.g. 401K and IRA). Unfortunately, Bush could not be a less effective communicator/sales person. We need politicians who can cut through the partisanship and communicate is a simple and direct way what the future holds if the current policies continue to be followed. Moreover, we have to engrain the notion of responsibility into the national fabric. It has to be taught to children from a very early age. There is no reason why we cannot put the necessary incentives in place to enable modified 401k's and IRA's to be the primary mechanism for retirement savings. We can and should take similar steps with health care accounts. Imagine the capital and productive capacity that would be freed to focus on things that could truly improve our society and increase the size of the pie for all Americans. 2008 and beyond demographics just will not support our inexorable march down the entitlement path.
For example, consider Social Security. Today, there are roughly 3.3 workers for each beneficiary. In 2034 there are projected to be 2.1. When Social Security was enacted in 1935 there were over 40 payers for each recipient. Social Security currently constitutes 37% of government expenditures and 7% of GDP. No doubt, when it was first instituted, there was no thought that it would consume anywhere near this percentage of our national resources. Unfortunately, that is the recipe for most such programs. They simply do not contemplate the long-term consequences. No country, even one as rich as ours, can survive that type of ever-increasing burden.
So, what is the solution? How do we protect ourselves from becoming an entitlement society and thus on the fast track to national financial insolvency and the destruction of our very way of life? Remarkably, Bush has it exactly right. We need to transition into an ownership society. Not just with Social Security via private accounts, but also with health care and retirement accounts (e.g. 401K and IRA). Unfortunately, Bush could not be a less effective communicator/sales person. We need politicians who can cut through the partisanship and communicate is a simple and direct way what the future holds if the current policies continue to be followed. Moreover, we have to engrain the notion of responsibility into the national fabric. It has to be taught to children from a very early age. There is no reason why we cannot put the necessary incentives in place to enable modified 401k's and IRA's to be the primary mechanism for retirement savings. We can and should take similar steps with health care accounts. Imagine the capital and productive capacity that would be freed to focus on things that could truly improve our society and increase the size of the pie for all Americans. 2008 and beyond demographics just will not support our inexorable march down the entitlement path.
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