As the new year begins, Congress is looking to ram through a trillion dollar "stimulus" package. Obviously the concept is ridiculous: Extract money from the private sector and have the public sector spend it. The goal, though, is correct: Increase economic growth.
If a trillion dollars is on the table, why not use it correctly? The government should issue a trillion dollars of Treasuries - which are currently trading at low yields/high prices. Deposit them into private savings accounts for each taxpayer, based on current age and projected social security liability. Replace the payroll tax with a compulsion to contribute to the newly created retirement account. Three birds are killed with the same stone.
First, the Ponzi scheme known as social security is fixed.
Second, a real lock box is created for the taxpayer: an account with their name on it.
Third, economic growth will be greatly stimulated.
If for whatever illogical reason privatizing social security is too much for Congress to stomach, there is another simple alternative stimulus package: flat tax.