Here’s an idea which could create total happiness for everyone: Universal Lifetime Insurance. And what is that?
First, let’s look at the reality of our society in the United States. Some people are born into wealthy families and some into poor families. Some are born with health problems from the time of birth and some are born into a lifetime of good health. Some are lucky enough to get good jobs and some not. Put it another way – much of what happens to you is plain, blind luck. That’s why you need Universal Lifetime Insurance: to level out the playing field, and give the unlucky ones something so that they might have happier lives.
So what is this insurance? It’s a guarantee that when you have worked all your life and are ready to retire, that you have enough money to have a happy retirement.
Where do you get this insurance? You get it automatically when you are born in the United States. It’s paid out of tax money and it goes to every natural born citizen (and every immigrant who becomes a citizen before the age of 18). It goes into effect at the age of 65 (or the later age of your retirement). The government calculates the income you need to have a happy retirement on and after the date of your retirement, given your savings and likely income from other sources. If you won’t have enough for a happy retirement, the insurance makes up the difference.
How does the society pay for this insurance? Through taxes, of course. Enough money is put aside in national savings so that the insurance program will be able to function. Simple enough.
Does this mean that a lot of people won’t save for retirement? Well, sure. That may happen. But the taxes that support the insurance program are basically social savings. You are paying for your own retirement because you are paying higher taxes. And the wealthy are paying more so that the poor get a decent coverage. What’s wrong with that?
Is this socialism? Well, no doubt. But it doesn’t undercut our present system. It just gives everyone a guarantee of something to look forward to. It has no real impact on the rest of the economy. It’s just a form of collective savings. If the voters want the insurance program to be run by a government agency like the Tennessee Valley Authority, so be it. The money comes from taxes, and the agency operates the distribution from and calculation of the insurance. Since the insurance doesn’t go into effect until the payee reaches retirement age, it should have little impact on anything except senior citizens. But that’s okay; the senior citizens deserve something to look forward to. And their children won’t have to take care of them. We can add a guarantee of medical coverage as part of the insurance, which means that Medicare is no longer needed as a separate program. Overall, it may improve our American way of life very much.