Because of the demographic shift of the American population over the next 30 years, economic conditions in the United States are going to go from bad to absolutely catastrophic. By the year 2020, 26% of Americans will be collecting Social Security and Medicare benefits, and that number will increase to 38% by the year 2045.  Both of these programs are known as "pay as you go" entitlements, meaning they are funded with current taxes or by increasing the already bloated federal deficit. 

 

By 2020, our federal budget will probably be triple what it is today, with more than 70% of it allocated to these two programs. It will also mean the average American will be faced with a tax rate (federal, local and state combined) of 65% by 2025. By 2045, the tax rate could easily surpass 80%. Obviously, such tax rates are unsustainable for our economic health, and probably politically untenable as well.

 

It is very likely that well before the midpoint of the 21st century the U.S. economy will be close to what is now considered third world status, because our inflation rate will have to soar above 200% in order for the government to keep paying for all of its obligations. After this, things will get worse because other countries, which have been keeping us afloat by buying our debt, will stop doing so because it will be considered worthless.

 

So, is there a solution to this seemingly inevitable calamity? Yes. There is a great one. The cost to the federal government for these entitlement programs will probably average $225 per day for each retired American by 2025. It is likely that at this time the average wage in India will be $2.25 per day and in China $5.50. The solution, as I see it, is to begin exporting our older Americans to these two countries because the cost of housing, food and medical care for our senior citizens there would be less than $12 a day.  This would even include a full-time personal assistant for each American we export. 

 

This would reduce the cost of our entitlement programs by more than 90%, our federal deficit would almost immediately disappear, and our tax rate could be reduced to about 12%. In fact, we would be the strongest economy on earth, and Americans, by the middle of the 21st century could enjoy a standard of living 3-4 times greater than today.

 

So would this plan really work? Well, of course some senior Americans, for various reasons, may not be exactly keen on spending their golden years in India or China. Please do not get me wrong, I am not an uncaring person, and I want this program to be accommodating to everyone.  After all, America was founded on the principle of equality and justice for all. So I have two options for those senior Americans who don't want to be part of our resettlement program.

 

One option would be to simply give our "stay-at-home" seniors the daily cash equivalent of what the government would pay for their living expenses in India and China, or about $12 per day. Individuals who had saved well or learned to live very frugally would be ideal candidates for this program.

 

The other option would be to allow these Americans to receive the $12 supplement and take part in what I call the "Family First" program, in which loving and supportive children agree to take their parents in and care for them for their remaining years. As a supplement to this, there would also be an "adopt a senior" program, through which younger individuals could adopt and care for a senior who is not a blood relation. This might be particularly popular among people who have issues with their own parents, and want to make the ultimate statement of dissatisfaction with them by taking in someone else in their senior years.

 

Our resettlement destinations, China and India, have some of the greatest offerings of culture and cuisine of any place in the world, with an array of historical sites and places to visit. I actually think that the problem we may have if this plan is enacted is many younger Americans lying about their age so they can be part of the program early.

 

One final thought. The U.S. has the largest per capita prison population of any country in the world. There are now more than 3 million people in federal, state and local prisons. The cost of incarceration is more than $50,000 per year for each prisoner. As you may know, Iceland has recently gone bankrupt, with little hope of economic survival. The population of Iceland is approximately 350,000. My suggestion is that we move all of our prisoners to Iceland (one of the harshest and least hospitable climates on earth) and hire the majority of the adult Icelandic population to feed, guard, and house these inmates, at $25,000 a year per inmate. This would reduce our prison costs (currently $200 billion a year) by half, restore Ideland's economy, and because of Iceland's remoteness and climate, provide a major disincentive for people thinking of committing crime.

 

Through these programs, we can restore Amercia's financial soundness and virtually eliminate crime. However, this vision cannot be realized without dedication and commitment by the citizens of this great nation. We must therefore work together across party lines, age, race, and gender. I do not expect personal recognition or remuneration for these ideas. Having played my small part in solving the current ailments of the United States would be enough reward for me.