It involves ENDING the federal presence in our individual lives by gradually phasing out ALL of these "assistance" programs. I'd start off by placing an end date for social security and gradually cut back until no one is covered by it. Those who have paid into it who do not receive the "benefits" at least will have a 15% raise in income to show for it. I'd take this trade-off and I'm 57. I'd at least know that my kids and grand kids won't be screwed like all of us have been.
This one step would go a long way to returning this nation to financial solvency. Once federalism has been returned to it's rightful posture, those who have delivered it to our doors will become contributors to our society rather than bloodsuckers. The states will take center stage in providing whatever assistance is deemed necessary. The other thing to help this transition is to "privatize" as much as possible EVERYTHING that is currently being done by government so that things that don't survive in the real marketplace can die off as they need to.
These are just a few ideas to start off with. There are many other things that can be done. In short, yes, we can fix this.
In the world of career politicians, everything is made more complicated -- by them. As pointed out in the Gokhale-Smetters Report, "entitlements" have become embedded in the American psyche and anybody that makes a move to phase out or otherwise cut back on either can count on certain political death. Old folks vote in high numbers. Health Care Reform™ is an end run around the problem and Pubbies are left shilling for Medicare, etc; programs guaranteed to backrupt the country in the not to distant future. Interesting times.