t Chasbo,
What if we started by implementing a new program for children being born now. If we started by putting aside $5000.00 for each child when they were born and stuck it into a seperate account that would be used to fund a homeowners financing program. Parents could contribute a set amount to the fund tax-free like an IRA, with the money contributed refundable if the child dies, but the remainder or any unused funds going back to fund the program. The program would be backed by the federal government, guaranteeing a return of no less then 5%. With the laws of compound interest the initial investment should be plenty to fund the entire program. The advantage is that a large portion would be paid in interest by each recipient. If there is too much money available, the excess could be used to fund commercial loans or put into approved mutual funds. Perhaps a certian percentage would be allowed to be delegated by individuals into different investments, but would not be guarranteed.
In the short run, it would cost us lots, but if the funds were never touched or used for other things, it would be much cheaper. We could even try to make highend earners pay it themselves or pay for it by removing the tax credit for children for the first 5 years of their life. We would have to keep paying social security for a while, but we wouldn't have to worry about replenshing it.
Thats my long term solution to social security.