In God We Trust—A New Financial Model to Secure the Future
The U.S. faces a fiscal crisis with Social Security, education, and healthcare costs spiraling out of control. As debts soars to unprecedented levels and critical social programs edge toward insolvency, America faces a perilous fiscal crossroads. This article proposes a novel, intergenerational trust-based framework aimed at rescuing social programs, unleashing sustainable education and healthcare funding, and restoring long-term fiscal stability.
The Growing Crisis
- The Social Security Act states that if reserves are depleted, the program cannot pay out more than it receives—triggering a projected 23% benefit cut.
- Healthcare costs have reached $4.9 trillion in 2023, with medical debt affecting 41% of adults.
- Student loan debt is nearing $1.64 trillion; household debt ~$18.39 trillion.
- Federal debt topped $36.2 trillion; U.S. credit rating downgraded to Aa1.
A Bold, Trust-Based Solution
I recommend widespread adoption of long-term intergenerational trusts—legal perpetuities bolstered by financial perpetuities—structured around healthcare, education, maintenance, and sustainability goals. The guiding mantra: "In God We Trust"
- Capitalization-of-Earnings. Trust corpus remains untouched while diversified investment returns compound tax-efficiently—historically 9–10%. Using a 2–3% income-only rule, principal grows in perpetuity and funds future generations’ healthcare and education needs.
- HEMS Provision. Restricted to healthcare, education, maintenance, and support needs.
- Spendthrift Provisions. Prevents irresponsible spending, creditor seizures, and predatory lending.
- Perpetuities. Drafted under state perpetuity reform statutes to ensure generational longevity and fiduciary discipline.
Costs, Benefits, and Feasibility
- Public Incentives via Estate/Gift Credits. Contributions could receive tax breaks.
- Term Life Insurance. Families can seed trusts using policy benefits.
- High-Net-Worth Contributions. Lump-sum gifts compound indefinitely while enforcing disciplined distributions.
Impact and Long-Term Discipline
| Benefit Area | Description |
|---|---|
| Fiscal Relief | Shifts from entitlements to trust-based efficiency. |
| Healthcare Coverage | Funds medical costs and long-term care. |
| Educational Access | Provides stable funding without borrowing. |
| Debt Reduction | Reduces reliance on loans and credit cards. |
| Social Security Supplement | Mitigates potential benefit cuts. |
Call to Action
Policymakers, state legislators, philanthropists, and families must explore this innovative capitalization model. Without structural reform, future generations face diminished economic security. Trust-based frameworks offer a proven, disciplined, long-term path forward.
