We all have our own ideas as to where Millennials should channel their energy. And Rolling Stone writer Jesse A. Myerson has his, too, as he explained in an article titled “Five Economic Reforms Millennials Should Be Fighting For.” But I have mine, and they’re as different as night and day from Myerson’s.
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Rolling Stone published the article in its first issue of 2014, and it has raised many eyebrows — especially on the Right — for encouraging reforms that smell a lot like socialism. In addition to advocating for universal social security and a redistribution of land and assets, the author believes young people should champion a “job guarantee” and public bank.
Myerson was right about one thing: Millennials have had it tough for the past few years. Unemployment for 18-to-29 year olds sits at 15.9 percent, more than double the national rate; student loan debt topped $1 trillion; and the federal government is spending at unprecedented levels — and doing so on the backs of Generation Y.
But capitalism is one of the principles that makes this country great. It has allowed young entrepreneurs to flourish and given society some of its best innovations. And a little competition is good for the soul.
So instead of advocating for five economic reforms that bear striking resemblance socialism, here are five real reforms that will make not only Millennials’ lives better, but also those of our children and grandchildren.
1. Reform student loan programs
The issue of student loan debt was at the forefront of lawmakers’ minds as the interest rate doubled this summer to 6.2 percent. Thanks to action from Congress, though, that increase was quickly reversed as young borrowers breathed a collective sigh of relief. But keeping student loan interest rates low isn’t the only reform that needs to be tackled. The average college student graduates more than $29,000 in debt, and collectively, student loan debt tops $1 trillion — outpacing credit card debt. And the dismal job market does little to give Millennials headway in paying off their loans.
Instead, borrowing for student loans should be limited in an effort to put pressure on universities to keep the skyrocketing costs of tuition down. Millennials should encourage reforms that lower the cost of college and put the spotlight on cheaper degrees — reforms such as those enacted by Gov. Jon Kasich (R-Ohio), which bases funding for colleges on the percentage of students they graduate, or by Gov. Rick Snyder (R-Mich.), which keeps tuition increases at under 4 percent.
2. Simplify the tax code
Many working young people found out the hard way that an increase in taxes means less — way less — money in your pocket, especially after lawmakers raised the payroll tax last year. Simplifying, or reforming, the tax code encourages job creation and economic growth — without the threat of higher taxes. A flat tax would make things easier not just for young Americans, but all Americans, especially when April 15 rolls around. And eliminating taxes like the income and payroll taxes means more money in people’s pockets, which in turn leads to more saving and investing.
3. Spend. Less.
The federal government is spending at unprecedented levels, even after the mandatory cuts enacted through the sequester last year went into play. The national debt currently sits at more than $17 trillion or more than $150,000 per taxpayer. And the government has been caught wasting millions on lavish conferences, outrageous bus stations and research for things such as bovine weight loss. Such high spending levels means a sluggish economy, and the federal government is saddling its citizens with the debt.
4. Reform social security, Medicare and other entitlement programs
Medicare, social security and other entitlement programs are bankrupting the U.S. government, and the funds that young people contribute to will be dried by the time Millennials are eligible. With unchecked spending levels on these entitlement programs, they’re projected to consume 100 percent of all tax revenue by 2050, leaving nothing for other things like defense. Young Americans should be in charge of their own retirement and health savings, instead of paying into a system they will never reap the benefits of.
5. Deregulation
2014 brought 141 new regulations from the federal government in the first three days of the new year, many of which are attributed to the Environmental Protection Agency. The Affordable Care Act, President Barack Obama’s signature law, brought with it more than 10,000 regulations of its own. Companies spend millions attempting to adhere to — and keep up with — the regulations implemented by the federal government. Businesses should instead be investing in job-creation instead of spending millions to keep up new regulations. According to the Heritage Foundation, federal agencies issued regulations in the first half of 2011 that imposed a one-time cost of $6.5 billion. Imagine if all of that money went to job-creating investments instead.
