As I explained in this set of videos, we desperately need to reform entitlement programs. But not in the wrong way, with price fixing and means testing.
Good reform means personal retirement accounts for Social Security. It means vouchers for Medicare. And it means block-granting Medicaid back to the states.
And if you want to understand why reform is important and why the current system is unsustainable, watch this video featuring Blaise Ingoglia from Government Gone Wild.
You may recognize Blaise. In previous posts, I’ve featured his excellent videos on bloated bureaucracy and wasteful government spending.
[…] How the welfare state is crippling America’s social capital. […]
[…] How the welfare state is crippling America’s social capital. […]
I guess this is why we can be sure of paying taxes till death…
Sure
But he bases his center argument on morality not on the pragmatism that Americans are entering the irreversible world of 1-2% annual growth rate in a world that grows 4-5% on average i.e. Decline towards the world average.
The permanent programs that will change personal lives and towards lifetimes of mediocrity have not fully cocked in yet — primarily ObamaCare.
The prosperity convergence towards the worldwide average will be felt strongly and the resulting desperation will trigger the voting of new “care” packages. This is the orderly decline scenario.
The disorderly scenario is the fact that the world realizes that Americans are no longer Americans and what you have left is mediocre people under French incentives to produce and start demanding higher interest on debt that increasingly looks like will only be partially repaid as Americans try to inflate away their promises. Without an external entity available or possibly capable of bailing out the US, the situation will spin out of control into a crisis, at which poont the exceptionally productive will get punitive tax rates and become french in their motivation to produce, while the middle class gets a significant haircut in standard of living by introduction of VAT which will quicly climb to 25%. Thiis is how the american dream ends.
Reblogged this on The Conservative New Ager.