Improvements for all Time

How, you might be wondering, would our government behave if we returned to our founding principles and a strict adherence to the Constitution. To reiterate, our original principles include small, limited transparent accountable republican government with equal application of the law to all citizens and corporate entities. Here are specific examples of what that type of governance would look like, and how it differs from the corruption we are subjected to today.

1. No bailouts. To anyone or any company at any time (except possibly in time of war to keep a crucial manufacturer in operation temporarily). It is an abuse of power and a violation of equal protection for the government to choose economic winners and losers. As in intervening on behalf of Bear Stearns but not Lehman Bros. In fact, the potential for catastrophic failures like those occurring in the real estate and credit markets would likely be lower if government did nothing to "ease the pain". Under our limited government approach Fannie Mae and Freddie Mac would never have existed as quasi-governmental groups, much less have had any implicit federal backing. Without those two creating artificial demand for subprime mortgages, the RE bubble would not have been as large as it was and the ripple effect not so damaging.
2. Flat rate income tax. The vast majority of people would pay one, and only one, rate. Probably something between 10% and 20%. Those at the bottom of the income brackets, earning under maybe $25,000 per year would pay no income tax. Ideally, everyone would pay some tax, if we're to have an income tax at all, but this approach reduces the need for supplemental programs or credits for the poor that could be abused by both recipients and government officials. This scheme would eliminate all deductions, credits, and other tricks that politicians can use to grant favors to special interests and friends. Also, it ensures that nearly all citizens have an economic interest in voting and active civic participation.
3. No czars. The word, or the position, is not found in the Constitution and there is no accountability of them to Congress or the voters. Therefore, the czars and their offices, staff, and budgets are gone. And let's not be slick by labeling them "special advisors" or any similar.
   
4. The number of cabinet positions and their corresponding departments would be reduced, at least by half. Those that would remain include State, Justice, Defense, Treasury, and something that would address natural resources and infrastructure. Key agencies that would stay include FDA, CDC, Coast Guard (under Defense), and possibly FCC.
5. Balanced budgets. Congress could not pass deficit budgets unless during times of declared war.
6. No career politicians. Term limits are probably the only feasible route to accomplish this, although it is not without its own faults. In general, no person could hold elected office or appointed position for more than 8-12 years before having to return to private life for at least 2 or possibly 4 years. Also, Congress would meet only 5-6 months of the year in total. It was never expected or intended that legislators and top officials would be anything other than private citizens with real professions that paid their bills. Another solution beside term limits is to ban A/C from all federal buildings, with the exception of military posts. Congress would flee from Washington as soon as Spring arrived like rats from a sinking ship.
7. Social Security funds (or other non-discretionary entitlements) could not be used for anything but Social Security. Ideally, we would admit that this is the largest Ponzi scheme in the history of world and radically reform it. Make it into something like a mandatory savings/retirement account. Social Security is very tricky, both financially and political, so I won't expound on it here.
   

Go let this sink in for a while. I'll have a few more wacky radical ideas for you soon.