How to Really Fix America

There are several simple modifications to American policy and to our US Constitution that would quickly set America on a path to prosperity and happiness.  They include:

  1. End America’s role as the world’s policeman  – follow the current Constitution’s prescriptions on the use of our military
  2. Abolish the IRS and replace it with a fee based system of funding for only Constitutionally defined activities the federal government can participate in
  3. Abolish all non-Constitutionally defined government activities with an all encompassing amendment to the US Constitution i.e. disbands cabinet roles such as HHS and Department of Education and governmental agencies such as as the EPA. This action will force the end of federal programs like Medicare, Medicaid, Social Security, etc
  4. Rollback all federal laws for victimless crime
  5. Strengthen federal laws on property rights, citizen on citizen violence, and fraud and coercion
  6. Provide each student under the age of 18 in America with uniform financial stipend that can be used for education and training at the institution of their parents’ choice
  7. Add an amendment to the US Constitution forbidding an income tax or ending the fiscal year without a balanced budget
  8. Stop all federal surveillance unless sanctioned by the terms in the 4th amendment to the US Constitution
  9. Reform immigration to include work permits, simple path to permanent residence,  and add an amendment to the US Constitution forbidding of federal aid to new arrivals
  10. Abolish the Federal Reserve and have legislative control over the current which would be backed by gold and other non-perishable assets

 

The results of these policies would be:

  1. Reduction in cost of national defense and a more popular America throughout the world
  2. Reduction in the cost of collecting funds for the federal government and elimination of corruption caused by the current tax code
  3. Reduction in the cost of government and the ability of citizenry to chose to localize services and the state and municipal level. There would now be a separation of government and business and government and healthcare, etc..
  4. Reduction in incarceration rates and the cost of administering justice with America
  5. Would offer American’s a more equitable and constitutionally sanctioned justice system
  6. Education is critical to a free society so a free parental choice based primary and secondary education would be provided to all students at a baseline level. The funding would come at the federal level from fees collected from selling, renting federal assets
  7. Keeps economic prosperity and assures continued economic justice
  8. Eliminates “Big Brother” for our lives
  9. Stops illegal immigration and assures America access to the world’s best and brightest
  10. Allows a sound money policy and uses market forces to guide interest rates and subsequent investments

 

Statism Does Not Work

This morning’s headlines are further proof that the state is strangling economic growth.  A modern economic system will not grow when there are high rates of taxation (federal, state, and local) coupled with burdensome regulations on business. We have seen this phenomena quite visibly in our nation’s lack of economic growth for the past eight plus years.  Some of the problem with our nation’s blindness or unwillingness to see this is the fourth estate’s coverage of facts but the sin also rests at the foot of those Americans who do not take the time to be educated on what is happening at a macro level with our economy.

U.S. Economy Expands at Slowest Pace in Three Years

This situation bodes the question, when will Americans say enough is enough?

 

 

 

Stop the statists: reduce student loan debt

Students are increasingly taking on greater levels of debt in order to attend college.  College tuition and fees have inflated significantly in the past several decades due to the states involvement, forcing the majority of students attending post secondary educational institutions to take out ever larger federal student loans. This situation is pronounced at state supported schools but even more so at private institutions who also can feed their bloated institutions on students’ federal loans.

According to the College Board, inflation in college costs are significant and continuing to rise at rates well about the Consumer Price Index (CPI):

Between 2006-07 and 2016-17, published in-state tuition and fees at public four-year institutions increased at an average rate of 3.5% per year beyond inflation, compared to average annual increases of 3.9% and 4.2% over the two prior decades.

According to the Federal Student Aid Portfolio Summary from 2016, the US Department of Education states there is $1.1298 T of outstanding student loan debt.

If the current situation continues, the state will continue to grow their already very large class of indentured individuals who are at their beckoned call. However, the situation goes beyond individuals.

The problem of having over a trillion dollars in student loan debt is significant beyond the burden it places on individuals.  Many economists see this large overhang of debt negatively impacting GDP growth. Headlines like Student-Loan Debt Slows Recovery are common within the MSM and even on alternative news sites. The theory about the impact of student debt is based upon a rational assumption; payments to service student loan debt cannot not be used to: start a business, form a household, purchase a home or car, or even go out to eat; basically less money from younger Americans is flowing to our nation’s GDP and instead going to the student loan cartel.

Here are some market based proposals to slow the growth of student loan debt please let me know what you think of them.

  1. Stop sending the message that everyone should go to a four-year college. Obama advocated many times about college but he was wrong, there many professions and job opportunities for those without a four-year degree. Less demand for four-year college degrees means prices will fall for those who do obtain one.
  2. Local officials should revamp their high school curriculum and programs to meet the reality mentioned above. They can by offering a very rigorous and real college preparatory track as well as offer a serious vocational track which includes on the job training and apprenticeships. Beyond the educational value this offers to more students, this model will reduce demand at four-year colleges thus lowering costs.
  3. Stop federally guaranteed student loans – do not make the taxpayer the backstop for student loans as they eventually will be called on to do in the current system. Going back to free market principles which will force lenders to properly assess a student’s real ability to payback loans. For example, a student who did not fare well in high school will likely not do well at a four-year college and thus is a poor loan risk. For redemption, this student can go to a two-year program and prove they can handle a more rigorous course load before taking on significant levels of debt they will be unlikely to payback. This reduces the cost of bad loans to lenders those making loans more affordable.
  4. Raise admission standards at four-year institutions, this will force students to compete (scholarships) and it will also drive many marginal colleges and universities out of business. This action will likely assure those who take out students loans will pay them back.  Here lenders see the best return on their investments feeding their desire to continue to offer high performing students (those who really graduate) loans.