We will be forced to distinguish between debt and unfunded entitlements. The former needs to be paid (or inflated away) unless one is willing to risk a collapse of the banking system. The unfunded entitlements are another story. These are vast obligations we have promised ourselves at the expense, of course, of future generations who have had no say in the matter. These will, simply, not be paid in full. Future generations are under NO obligation to fund our insane irresponsibility. Sooner or later, they will simply say no. The real argument is when and how the cuts will be made.
Part of the reason we can’t pay those unfunded mandates now, is because we have well in excess of 40 million people out of work. Add in welfare recipients who could work and we may be approaching 75 to 100 million people.
Not only would we not have to pay those folks each month, we would have tax revenues coming in.
Granted the unfunded mandate programs need to be re-organized.
We need to retire those with something better. With people working they can pay their own retirements.
I do think there will have to be a structured government involvement, but there’s no reason people can’t retire by 50-55 years of age with enough money to live as long as they want, if it is structured properly.
This doesn’t mean the government could abuse the funds as it does today. Those funds would be placed in a structured interest bearing account. Loans to participants would also earn interest.
In 30 years, the government could just about be out of the Social Security and Medicare business for good. There goes your unfunded mandates and a much happier and more successful live for our citizens.
Start paying off the debt now. Start allowing and assisting individuals set up their own retirement funds while still supporting the old system to an extent. Then phase it all out.
Wage earners now would have to fund their own retirements and a portion of the old system too, but even doing that they would retire at a much better position than those on SS today.
That would wind up a win/win.