Your suggestion in "ditching" the S.S system to deal with our current monetary crisis is analogous to dealing with Cancer by offering pain pills rather than surgical removal.
This Junkie (.gov) needs an intervention, not another fix.
This country needs revenue generation, AKA Jobs, which provides, Social security funding, the stability which employment brings, non governmental inspired health care plans through am employer and funds needed to keep a nation from crumbling.
Hauser's Law says that no matter the income tax rate Federal Tax Revenue will hover right at 19% of GDP. This means that even as the upper income brackets pay more (and lower income brackets pay less to nothing at all) the total revenue taken in essentially remains the same. So the idea that "tax cuts for the rich" only benefit the rich is simply a soundbite. When everyone gets a tax break it doesn't affect revenue. When you raise taxes it doesn't raise revenue (and if you are like California it drives off your highest income earners).
So FreedomYankee's idea is that by creating MORE jobs there will be MORE TAX REVENUE from a larger TAX BASE. This is a good idea, unfortunately it won't work as the numbers are just too large.
Assuming that Hauser's Law will not be violated, how much of an increase would we need in terms of GDP to make up the 1 Trillion dollar deficit for this last year? (19% of our GDP was 2.5 trillion which gives a GDP of around 13.5 trillion give or take (which is also the current debt of the US, when countries owe more than their GDP historically they go bankrupt). So in order to create another 1 Trillion dollars we have to grow the GDP 0.19X = 1 Trillion (X equals 5.26 Trillion). That means (1/0.19= 5.26) we would have to grow, (5.26/13.5) 39% overnight. Note, official numbers for our GDP just over 14.6 Trillion, but since GDP is largely an imaginary number used solely to describe the volume of an economy it doesn't really matter as long as the change in GDP reflects either a growth or shrinkage of that economy.
Since economies do not grow 39% overnight, REVENUE GENERATION is NOT an option.
Do you really believe the same government that caused this problem will take all the new found revenue, at your suggestion and use it wisely ?
Hell no. I expect this nation to crumble like Rome. At best we would simply fade into insignificance with the grace and dignity of (former) Great Britain.
Look the math simply doesn't add up. Our GDP has risen no matter how many "Free Trade" agreements gave manufacturing an option out of the Union monopoly on manufacturing. So NAFTA hasn't killed revenue for the .gov. We have never had a REVENUE problem, it is only a SPENDING problem.
To cut spending rather than a plan to return this to a robust economy is to admit this country is defeated, to beg for crumbs rather than acquire the bakery.
A wealhty ecomomy is a healthy economy, period.
I completely agree. Like Rome we won't be conquered from without until we have looted the public treasury on a Welfare State, intentionally devalued our currency, and become involved in large scale frontier wars far from the center of our nation. History may not repeat itself but it rhymes.
In terms of numbers we have a wealthy economy. Number one in the world. About three times larger than the next biggest GDP by country. It takes the Eurozone combining the economy of the rest of the Western Free World to even compare to the US. And 19% (Hauser's Law will not be denied) of the largest economy in the world is by no means a small budget, technically it is the largest government budget in the world. And our nation can't manage to not spend more than the largest tax revenue in the world.
My point is that we have to cut spending. We simply can't grow the economy out of this mess (the Stimulus Bill tried exactly that, and simply saddled us with more debt with nothing to show for it). We can't continue to "spend ourselves to prosperity" because our credit rating is already being downgraded (a long overdue move in my opinion).
Rome fell. The worlds sole superpower fell. Right now the US is the legacy superpower from the WWII era. And we will fall. The numbers don't lie. The question is whether the fall is hard and brutal like Zimbabwe or if it will be faced head on with austerity like our brothers across the pond.