Saving the American Dream

August 24, 2012

Health and retirement benefits were created to provide a generation of Americans a safety net by which they live comfortably today. Entitlement programs such as Social Security, Medicare and Medicaid are popular programs, but politicians promised them with no way of paying for them. These programs are at risk given the condition of the economy, says the Heritage Foundation.

  • U.S. debt held by the public is nearly 70 percent the gross domestic product.
  • Medicare and Social Security face $40 trillion in unfunded obligations.
  • That amounts to about $200,000 per person.

Soon, Americans will not be able to benefit from such programs because there is no money to fund them. However, the Heritage Foundation has come up with a plan to make these entitlement programs sustainable:

  • First, transform Social Security, Medicare and Medicaid into real insurance programs. It would provide financial security to retirees, and give assistance to people that need it while reducing benefits to wealthy individuals.
  • Second, repeal the Obama health care plan to give consumers flexibility to choose among competing health care plans.
  • Third, replace the current tax system with a fixed rate for everyone to allow business growth and allow Americans to save for retirement.

This plan would make the United States prosperous and fuel economic growth. In 10 years it permanently balances the budget, reduces deficits and reduces the size of the government where it has exceeded its authority.

Source: "Saving the American Dream," Heritage Foundation, August 2012.

 

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