What differentiates this from just being a very good book to what I think is an excellent one, is the background of the author, James M. Stone. Not only does he have an excellent financial academic start, but then in high level government positions, to starting and managing a decent size financial (insurance) company. So, a well diversified background to write about the challenges America must face, all depending heavily on understanding finance.
He sees 5 main areas to tackle. Following each are some items covered.
1. Fiscal Balance
Fix Social Security (adjust for life expectancy), Medicare (too generous) and Government pensions (defined contribution and matches for new enrollees), eliminate home mortgage interest tax deduction, eliminate corporation debt interest tax deduction.
2. Inequality
Both income and wealth distribution need to be addressed, in tax law especially looking at tax dodging by the wealthy and corporations via trusts, etc, also favoring long term investing and reducing speculating. The author also favors an annual tax on unrealized capital gains and also repealing the "step-up" cost basis for inherited assets.
3. Education
More money into poor areas, more use of charter schools and more vocational education - better tracking of kids, also a national service program, increased early childhood education, longer school hours.
4. Healthcare
Lots of changes here - drug negotiating and other things plus a single negotiator, tackle end of life care, single payer and regulator, reduce excessive testing, reduce overuse of specialist doctors, salary more doctors, more use of specialized nurses and physician assistants.
5. Financial Reform
Break up big banks - basically incentivize them to break up, less bank leverage, more disclosure, less use of derivatives, hedge funds regulated like mutual funds, reduce finanialization of our economy - it reduces productivity.
I recommend the book.
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