Friday, August 3, 2012

Blog Series #3: More Solutions To Big Problems

This page is a continuation of Blog Series #2: Solutions To Big Problems

Improve Education and Reduce the Cost of Government
  1. Outlaw public sector unions at local, state and national levels. Even FDR advised this. Teachers unions are hurting our kids and not helping, all other public unions only extort taxpayer money. Government employee benefits are estimated to be 45% too high compared to private sector.  Pensions are driving cities to bankruptcies already and expect more. Zero interest rates are NOT helping pension plans either.
  2. Cut public employee costs; kill defined benefit plans for public workers and scrap Davis-Bacon and all prevailing wage laws for public workers.  (hat tip to Mike Shedlock at  Globaleconomicanalysis Blogsite)
  3. Pass national "right to work" laws to allow individuals true freedom to join or not join unions.
  4. Freeze Federal employees salaries and reduce benefits which have ballooned 45% higher than similar jobs in the private sector.
Improve Fiscal Administration  

    1. Rollback the various Federal budget categories to 2008 levels or at least freeze Federal spending. Gradually reduce government spending back to 19% of GDP rather than 25%. Yes this will hurt the economy for a few years, but it's better for the long term.  It's entirely possible that, since there has been so little benefit for increased debt, a reduced rate of debt creation might not hurt as much as expected. In other words, vastly increased deficits did so little good, then reducing the deficits may not hurt as expected.
    2. We don't need troops in 140 countries! Cut defense spending.
    3. Medicare and Social Security need to be means-tested now. Reduce future payouts now to to take into account adversely changing demographics and reassure US debt markets.
    4. Get control of Social Security Disability--it's cost's are spiraling out of control. See my blog entry on this.
    5. Reduce or eliminate all/most tax deductions and broaden collection. The bottom 48% is paying no taxes (many or most have "negative" taxes), the middle class (top 25 to 50% from 32K to 66K income is only paying 6% federal income tax. The "rich" (top 1%) are paying 23% of their income in taxes, but the next highest income group between the top 1% and top 5% is paying only 16.4%. See for a Table of Income Tax data.   Obviously revising the tax code is indicated. Contrary to everything you've heard, the very rich are carrying more than their fair share!   Also see my blog:  Income Tax Demagoguery
    6. Corporate and Individual tax reform to broaden collection and reduce deductions. Collect more revenue. Corporations should pay more tax but the top rate should come down.  The "effective" rate now is too low given profit levels.
    7. Eliminating the Dept of Education, Dept of Homeland Security, TSA, Dept of Agriculture, NLRB (National Labor Relations Board), Dept of Energy, HUD and other housing programs. 
    8. Eliminate agricultural subsidies. 
    9. Cancel/reduce most foreign subsidies starting with eliminating subsidies to Pakistan! 
    10. Cancel or scale-back Obamacare since it's going to cost infinitely more than what was promised. If ObamaCare is retained, then allow high deductible policies to suffice for medical coverage (instead of imposing high cost policies)
    11. Privatize, privatize, privatize! Privatize the Federal highways and Post Office? Sell-off Fannie Mae and Freddie Mac. Get out of the student loan business.
    12. The Federal Government must schedule an end (soon) to the unlimited support ($100's of billions) of Fannie Mae and Freddie Mac. Sell off both.  Markets will clear faster.
    Please proceed to the next Blog Series:   Blog Series #4: More-solutions..

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