Tag Archives: social security

Post 2024 Election Insights: Humility and Hope

November 14th, 2024 | Dr. Charlie Self

As people celebrate or mourn the election results of last week, it is wise to consider the varied messages by the voters. Some really good news: there are no accusations or evidence of serious fraud or malfeasance by either party and the current Administration is committed to peaceful transition. Kudos to those elected and those leaving office for their commitment to our process.

Observations

The BIG news: American politics is complex, local, and voters do not always conform to economic, ethnic, religious, social, or political expectations. All candidates must listen to the concerns underneath the issues. The Republican victory is a response to real life problems that people of diverse classes and cultures think are important. The economy and work opportunities, safety, immigration, and cultural sanity were at the top of the list. At the same time, abortion rights were expanded in seven states, and many who voted for a Republican president voted for Democratic legislators.

The Democratic Party was playing catch-up the entire time as they had just a few months to present a new candidate to the nation. There was not time enough to move toward the political center which is where most Americans feel at home. The shift in voting patterns arose from particular concerns. and reflects voters’ resistance to elites badgering, condescending, and exhorting them to vote certain ways or be labeled as foolish at best and other epithets at worst. For example, the same groups that normally appreciate larger federal involvement do not appreciate being labeled and libeled for wanting to keep female and male sports separate. Many moderate to liberal religious people of all ethnicities and traditions grew tired of being considered ignorant or phobic.

Hopefully, Republicans will see this moment as an opportunity for prudential stewardship of the public trust, from shedding excess waste in spending, reforming and simplifying tax policies, moving toward energy independence, and finding solutions for crime and unchecked immigration. At the same time, Americans are generally hospitable to legal immigrants, generous to those in need, and depend on Medicare and Social Security functioning well. Working- and middle-class folks recoiled at paying off student loans, especially those that paid them off in full or worked their way through school.

A Place for Divine Providence

As a Christian, how do I see God at work in this moment? Three things guide my discernment. First, God’s providence leaves much room for human freewill and its consequences. Second, only a moral and spiritual awakening born of the Holy Spirit and touching all of life will reverse the idolatry, immorality, and injustice of the last several decades. This awakening is not a political movement, but a divine invitation to follow Christ crucified and risen. Third, there are moments of opportunity God grants to individuals, communities, and nations to alter course and move in the direction of, “doing justice, loving mercy, and walking humbly” before the Almighty (Micah 6:8).

President Trump’s uncouth methods and unwise words, and his intense promotion of election interference alienated many. The election of President Biden was seen as a move to moderation and civility. Instead of leading from the center, however, the Biden administration missed their opportunity and chose policies that alienated moderates and animated conservatives.

The second Trump administration has a chance to serve all Americans and promote policies that can unify a very divided and diverse nation. Leaving abortion with the states lets both sides persuade constituencies. Energy independence with proper environmental safeguards will help many economically. Creating a hospitable and secure border will have generational impact. Defending Israel’s right to flourish and make peace with her neighbors (expanding the Abraham Accords) is important. Standing for religious and political freedom around the world are morally wise positions.

Peacemaking Advice

As this transition occurs, may the new leaders eschew revenge and work collaboratively across the divides. Keep your promises with humility. Instead of mass deportations, register all undocumented residents and start the pathway to citizenship and residency. Deport criminals. Screen people at the border. Protect the vulnerable, especially children. Incentivize entrepreneurship. Streamline federal bureaucracies and return power to the states and municipalities where possible. Work with leaders of both parties and balance a budget. No life-altering drug treatments or surgeries for children confused about their sex. Stimulate fresh thinking on homelessness, with new ideas and resources for addiction and mental health treatments. Support law enforcement while holding them to high standards and winnowing out corruption and racism.

May those assuming power understand the gravity and hopefulness of this moment and walk forward with courage, love, and wisdom.

We Know Better, Part 9: Economics 101: A Call for sanity

August 30th, 2022 | Dr. Charlie Self

If we managed our family checkbook like the federal government, we would all be bankrupt. It is one thing having deficit spending in wartime or particular crises. It is quite another to simply print money, sell T-Bills and leave $30T for future generations to manage. It is immoral, unconscionable, and terrible economics. We have tried to be a warfare and welfare states since the 1960s and we must alter course.

In this essay, I am not ranting about the current administration’s out-of-control spending and highly political largesse for voters. Anyone can do that. I am not going to lambaste both parties for their refusal to trim waste and remember that all the money they spend in Washington, D.C. originates with taxpayers. I am going to offer a way forward that is at first glance naïve and simplistic, but upon further reflection, incorporates the insights of leading thinkers of the last half-century and is non-partisan and non-ideological.

I think we must argue about spending priorities, just like the family dinner table, a small business, or the corporate boardroom. I think we must argue about a fair tax system, from flat taxes, modified flat taxes, progressive tax rates, and levels of corporate taxation. Let the debates begin in the House of Representatives where they belong, and let Congress do its job.

We also forget that decentralized administration is almost always more efficient and fairer, so it should be a long-term priority to have our states, counties, and cities receive a larger portion of our tax dollars and Washington, D.C. much less.

OK, here are three simple points that will transform our economic future, without starving anyone or leaving America defenseless.

ONE: We must achieve a truly balanced budget ASAP, preferably in the next five years, beginning with significant deficit reductions and then living within our means. What does this mean? Here are some ways forward under this heading:

Reduce ALL federal spending by 15-20% across the board, targeting inefficiencies, encouraging retirements, rewarding departments under budget, and placing moratoriums on discretionary spending. (Oh, and place all elected and appointed officials back in the social security system and privatize their pensions.)
Look to eliminate unneeded agencies, restore as many functions as possible back to state and local governments, and welcome input from business leaders on more effective administration.
Decide ahead of time that we must live within our means. Need more money for a particular program that is working? Then find new revenues that are not hurting the productive and perhaps cut other budgets if needed.

TWO: We must transform our overly-complex federal tax system. We have higher corporate tax rates that many “semi-socialist” nations in Europe. The top 10% pay more than 60% of the taxes and almost half of all American pay little or nothing. Here is a pathway forward:

Move to a modified flat tax that is revenue neutral from the baseline of a selected year, like 2019 (when the economy was good). Start at 5% and set the cap at 20%. Do the math. There is enough money.
Over a five-year period, eliminate all personal deductions – yes, ALL deductions, including charity, mortgage interest, etc. If I know I will never pay more than 20%, then I am still incentivized to earn more. If I know that at least 5% will be paid, I will aim to work hard and advance.
Corporate tax rates must be fair and reasonable and we must stop the cronyism that exempts some elites and places the burdens on the rest of corporate America. Tax only profits after accounting for expenses, R&D, etc., and do not tax dividend, stock, and other capital gains above the lower rate. I recommend 20% as a maximum rate.

THREE: This is the hardest of all: We must stop looking to the federal government to directly solve problems best tackled by more local private-public partnerships. WE DO need the universal ethics of the federal government, but not the ubiquitous administration. For example, an FDA is good, but a government-run meat company would be terrible. Here are some first steps:

End all loans for education. Encourage grants and scholarships from states and private sources. Continue with scholarships for veterans and particular fields that serve the common good.
Streamline military and welfare agencies so that the cost of services is reduced and the frontlines are actually helped instead of everything being entangled in a bureaucratic mess.
NO taxes on personal inheritances. It is immoral to tax again monies already taxed.

The burden for these changes is on us, the American citizens that vote. Will we see the moral problem of spending or capitulate to fatalism and hope we get our share? Our grandchildren need our courage! And if we make these changes, our economy will again be the envy of the world.

December 3: Some Economic Proverbs

December 3rd, 2018 | Dr. Charlie Self

We have more tax revenues than ever…and ballooning deficits in Washington, D.C. Neither party has the courage to balance a budget and repay obligations. Here are some insights for changing the conversation:

Create a budget based on the real revenue of the previous year. If there is more money, decide ahead of time where it goes; if less, have the cuts ready.
Unregulated capitalism and bureaucratic socialism achieve the same end: a few are enriched at the expense of most.
Begin a process of removing the thousands of agricultural subsidies that benefit huge agribusinesses and are no longer needed.
Transform HUD and other agencies into efficient, decentralized catalysts for help and transformation instead of career paths for bureaucrats.
Cut defense spending and increase support for veterans. One less bomber means help for thousands of vets and less pork for Congress to give away.
Privatize all public pensions, with excellent regulations through the SEC and other agencies. Eliminate the special retirement benefits for elected federal officials and have them held to the same economic standards as all citizens.
Public employee unions should be able to bargain, but not hold taxpayers hostage to benefits they cannot afford. Bring all teachers and workers into Social Security and offer excellent private plans – just like the rest of the country.
Hold all government agencies accountable for best practices and have private-sector leaders offer insights on efficient methods and ethics.
Transform the IRS with simplification of the tax code and consider alternative ways of raising revenue.
Invigorate private/public partnerships for all kinds of infrastructure, with high standards, but honest bidding processes and a cap on “change orders” and lawsuits.
Stop sending tax dollars to colleges and universities for frivolous programs and lower the cost of education by demanding that teachers teach, and students work.

With courage, love and wisdom, we can change a 50-year trajectory.

“Solving” the Budget Deficit Crisis

May 21st, 2018 | Dr. Charlie Self

For over 50 years, Democratic and Republican Administrations and Congressional leaders have tolerated and sometimes touted deficit spending, resulting in a huge national debt. Balanced Budget Amendments are often proposed but dead on arrival in committee because no one wants to offend constituents or appear lacking in compassion.

The fundamental flaw is simultaneously maintaining a federal welfare state and a close to wartime economy at the same time. “Guns and butter” are problematic. This does not mean we must sacrifice adequate defense and concrete compassion! What we need is a complete reprogramming of political mindsets that merely “kick the can” down the road for the next generation in order to appease various special interests.

As I write these words, tax revenues are at an all-time high. So why are deficits also ballooning? Every new President and set of Congressional leaders promise to “sharpen the pencils” and “go line by line” through the budget….and then they cave to political expediency.

Underneath the surface is even more ominous news – there are no “savings” locked away for Social Security or Medicare/Medicaid needs in the decades ahead. Since the 1970s, it is all a numbers game!

As an aside, if we managed our family budgets like our national (and sometimes local and state) government(s), we would declare bankruptcy and perhaps face serious criminal/civil charges.

So, what do we do? Here is a prescription (using the insights of many folks much smarter than me):

Decide to live within our means. Apart from extreme global emergencies, this is vital.
Privatize government pensions and benefits so that elected officials are not immune to economic realities.
Streamline government services with the help of ethical and efficient business leaders so that recipients get what they need, and bureaucracy is minimized. It is a moral issue when government keeps ballooning and the poor and our soldiers barely make it.
Simplify the tax system and eliminate the egregious loopholes that reward the crafty and penalize workers.
Establish priorities so that when revenues go up, there are places for the extra funds (including debt reduction). And if revenues fall below expectations, plans are in place for judicious cuts.
Begin debt repayment and true Social Security savings once there is a balanced budget.
Establish alternatives to the public employees’ unions that forget their source is the American taxpayer.

With these starting points, we can wisely confront our warfare and welfare policies and devise new strategies for defense and compassion. Compassion is best administrated locally, with federal ethical oversight. We must be prepared to confront terrorism and aggression without being an occupying force longer than needed. And our veterans deserve good care.

Every day, thousands of families happily discover debt-free living. When normal includes sacrifice and saving, stewardship of limited resources and creative budgeting, families flourish and the foundation for prosperity is assured. It is time to get the government off the credit cards and on new pathways.

Careful budgeting will not “starve the children” or weaken our military – just the opposite. Today’s discipline is tomorrow’s destiny. Imagine the USA being the largest creditor instead of the largest debtor. It is possible within a decade if we have courage and self-restraint, creativity and vision for generations yet unborn. We need no long fear being held hostage by hostile powers that own our debt.

We can do this.