Entitlement Reform

Entitlement Reform –The first thing we should do is to teach Americans how to be more self-sufficient and we as a Country need to move back to a culture of Individualism and the family unit, and get away from the idea that government should be our savior and the center of our universe. Well intended federal welfare programs have not reduced poverty, but have actually increased it and the repercussions have resulted in untold social problems which have destroyed families and individual lives. We should eventually phase out federal welfare programs and give block grants to states which could be used to start partnerships which could allow churches and charitable groups to assist those who are the neediest. Federal block grants could also be used to help states set up safety net programs which could facilitate assisting the poor and disabled citizens. Entitlements, If not brought under control will consume the entire federal budget within a few decades if not brought under control.

Social Security – We should keep retain standard benefits for those nearing retirement age. The retirement age could be adjusted upward to reflect longer life spans in general but also to reflect longer worker’s longer economic production due to medical advances. Means testing could also be a beneficial way to reduce payouts due to the reality of less need due to increased income during the life of some recipients of the program. For younger workers a choice of defined contribution plans ( a 401K-type) or a mandatory individual retirement account (IRA), that would be self directed by the individual during their working years, which would allow flexibility, and the greater chance of achieving continued positive growth in their retirement account. Although mandatory, these accounts which would be built upon their personal savings would be off-limits to raids by Washington politicians.

MedicareMandatory Health Savings Accounts, (HSA’s) could use funds contributed on a regular basis to pay into conservative investment vehicles which could then fund medical expenses. Using this option, consumers would be more prone to make more common-sense and cost-effective health decisions. This would allow them to conserve resources and also to get the most for their money. There is also a way for  workers to keep their private health plan on retirement and at the same time, saving the federal government money by allowing Americans the option of signing up for the current Medicare plan, or accepting a defined Medicare benefit, which could then be used to pay for their own individual health insurance plan.