Friday, July 29, 2011

Fund raising- a partial solution to debt woes-2

Since the Federal government is not in a position to give us what it has promised to give in the future, a type of localization of fund raising for social security and Medicaid and Medicare should in put in place for each individual state and funds raised through them should be placed in a State owned bank and then those funds invested in whatever investment vehicles are available out there to earn money to pay the retirees. I know it sounds like a lot like privatization, but since the Federal government would not be involved, the unfunded deficit portion of the budget would likely be reduced or just taken out of the equation. Let the States handle the Social Security, Medicare and Medicaid exclusively by themselves and the Federal Government should get out of them completely.

I am saying completely because the Federal Government cannot pay all the unfunded obligations, as one article recently put it, if the government cannot agree to raising the debt limit by a couple of trillions, how will they agree upon dealing with almost a hundred trillion dollars in unfunded liability promised to the citizens in years and decades to come. We have not even reduced our principal and more debt means more taxes in the future, since we cannot control our expenditures. So the partial solution is to give each state to deal with its own Social Security, Medicare and Medicaid portion of the bill and they should in turn start fund raising drives constantly to raise those funds and put it in a surplus pool to pay the future recipients if the current generated funds falls short that particular year.

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