In “U.S. Debt Is Child Abuse”, Laurence J. Kotlikoff and Richard Munroe offer as clear and compelling case as can be presented for ending the irrational and unsustainable growth in government and showing the unquestionable theft from our children and grandchildren inherent in the governments prolifigate spending on the selfishness and irresponsibility of current adult generations.
Most refreshing is their prescription for solutions, which challenges the sacredly protected turf of both liberals and conservatives alike as they argue for the kind of common sense solutions that will realistically put the government back on a sustainable funding path without impoverishing our children:
This massive Ponzi scheme is turning the American Dream into the American Nightmare. Stopping it means dramatically limiting the growth of federal spending. Here’s how:
— Scrap our health-care system and provide all citizens with a voucher based on pre-existing conditions to buy a basic health plan, and limit coverages so that the total cost of the vouchers is fixed each year at 10 percent of GDP — what Germany now spends on care.
— Freeze Social Security in place, pay off its accrued benefits and replace the system with mandatory saving in personal accounts whose assets are jointly invested, by computer, not Wall Street, at minimal cost, in a fully diversified global index fund. The government would match contributions of the poor to make the system progressive and annuitize account balances at retirement. This Personal Security System would take much of Social Security’s unfunded liability off our kids’ backs.
— Finally, stop spending more than the next 15 countries combined on defense. Declare victory in our unwinnable wars and bring the troops home.
And what about revenue? Scrap the current tax system and tax the elderly as well as the young through a levy on consumption. Also, provide a fixed monthly payment to each household to make the consumption tax progressive.