Possible Solutions to avoid the Social and Economical Meltdown, Part 2
One solution would be to reduce government spending, but that is not likely to happen.
Another solution would be a huge growth in the U.S economy leading to a larger tax base. This, too, is unlikely. The U.S is beset by social problems and great skepticism make this solution improbable.
What are the options for the U.S? There could be a massive default of the Social Security System. It could end or be greatly reduced. People who have paid in contributions all of their lives would receive little or nothing from the system. Can you imagine the chaos that would arise from such a default?
Another option is to have the next generation (you and me) pay vastly increased social security costs. Would they be willing to pay those costs or would the system disintegrate? We, the next generation could be either unable to pay or refuse to pay.
The people and their leaders, would have to commit to greatly reduced government spending. Those entitled to Social Security payments would have forego much of what they now receive and go to work for a living. Much of that work would be at low pay.
All of this would have to be done for an extended period of time – at least until the U.S debt could be paid off, and a balanced budget put into effect to prevent anything like this from ever happening again. Do you believe that the above actions are going to take place? Could it happen? Or should you be making plans based on the probability that it will never happen?
Look at what the U.S leaders have been and are now doing. They will not vote for a balanced budget. They cover up the problems and put off necessary action. They hang back. They are unwilling to do anything unpopular.
They feather their own nests. They create loopholes that allow them to stand outside the laws they make for the rest of the people. They set up escape mechanisms for themselves and their families, but the average citizen cannot individually afford the expense of finding out how to use these holes in the system.
Part 3 of this article will be about What can you do to protect yourself against a possible world economic crisis.
