National Policy Issues
Numerous free market and government-controlled factors affect the strength of the U.S. economy, including interest and inflation rates, barriers to trade of U.S. goods abroad, and the price of foreign oil. Without question, however, three government programs - the federal tax code, the Social Security system and the Medicare program form the basis of our economic infrastructure. The tax code, Social Security and Medicare have the greatest effect on the prospects for current and future economic prosperity in the United States.
The tax code, Social Security, and Medicare, enacted in 1913, 1935, and 1965, respectively, are the three pillars that support the nation's economic infrastructure. More visible and easily manipulated factors like interest rates and trade agreements can certainly affect the economy's short-term successes or failures. An inextricable relationship exists, though, between our personal and business lives and the onerous tax code, our retirement plans and the health care system. The relationship illustrates the level to which our personal and professional lives are controlled, whether we notice it or not, by these three pillars.
The primary fault with our economic infrastructure is that it was pieced together throughout the last century using assumptions that are now long invalid. The authors of the tax code, Social Security system and the Medicare program could not and did not foresee the impact of the United States on the global economy, the size and influence of the baby boomer generation, or the myriad advances in technology and their impact on all facets of our lives.
In addition, the dynamics of wealth building and individual achievement have changed dramatically in just the last 20 years. Upward mobility from generation to generation is the norm. Today's white collar workers and small business owners are the sons and daughters of yesterday's blue collar union members. Women now make up a significant percentage of the workplace. Racial minorities are more upwardly mobile and represented in every aspect of society. Over half of the U.S. workforce owns financial investments such as stocks and bonds. More young people have college educations and advanced degrees than ever before. The marketplace for goods and services, ideas and innovations is global in scale. Perhaps most important, history has shown us the inefficiencies of centralized government programs and command economies. Yet, due to political pressures and a lack of leadership in most corners of state and federal government, we continue to place band-aids on an infrastructure that requires major reconstructive surgery.
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