Amoy Anderson Extra Credit October 13, 2011 Professor Rizzos Lecture

Welfare states
Professor Rizzo from New York University There have been many discussions about the welfare states and the problem it faces in the United States says Professor Rizzo. The immediate issue is that the debt crisis has accumulated and is resistant to solution by the Federal Government. He also talks about the physical gap, which is the difference between future values and present values. Physical gap is about two hundred trillion dollars and the public debt is even greater. Keep in mind that the major problems come in the future years as more people obtain access to Medicare, Social security benefits, and the government not being able to cover all the prices says the professor. Little of the problem is now, and later on it will be harder to find a solution. If we eliminate physical gap then taxes will go up by 64% says professor Rizzo. He went on to talk about a Harvard Professor, politician ineffaceability, and wartime solutions. Professor says, in order to take the issue out of politics we have to navigate around politicians, link pay roll taxes to unemployment roll. He believes that after the recession tax incomes will decline and more independent institutions. The federal agency is in charge of taxes and centralization of power in the hands of unelected people is an ongoing problem. The professor then went on to talk about John Kennedy and the ineffectiveness of his Presidency. Many people who supported John Kennedy at the time were upset, because his policies were ineffectual to pass through congress. What we need is not more democracy but leadership. Important points Professor Rizzo covered: all campaign finances must be national, House of Representative must be for four years and not two years, abolish two term limit for Presidents, Abolish electoral colleges and make it a national election.

Professor Rizzo had his own inputs on current issues the United States of America is faces. He said the core of the problem is that our government cannot come to an agreement. He believes that we do not need a strong leader in order to get the job done in the country if we are unable to agree on policies. Rizzo point of view is that the issues of the 19th century were easy issues compare to todays issues of taxation, Social security, currency reform, grants, and many more. It is easy to see why the government cannot decide on economic plans, because it is difficult to come to an agreement. Therefore, taxes increase and the government size is not downsized. When the current economic issues get worse then politicians might come together to solve the problem say Professor Rizzo. Last but not least he talks about the natural dilemma, further centralization of power, tradeoffs, and finally the down size of the government is the solution to the problem.