Blueprint for America

241 Pages·2016·12.001 MB·English

by  Shultz, George Pratt

BLUEPRINT foR AMERICA

BL UE P R I N T
f o R A M E R I C A
EdITEd By
George P. Shultz
CoNTRIBUTING AUThoRS
Scott W. Atlas • Michael J. Boskin
John H. Cochrane • John F. Cogan
James O. Ellis Jr. • James E. Goodby
Eric A. Hanushek • James N. Mattis
Kori Schake • George P. Shultz
John B. Taylor
H O O V E R I N S T I T U T I O N P R E S S
Stanford University | Stanford, California
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and archives, the Hoover Institution seeks to improve the
human condition by advancing ideas that promote economic
opportunity and prosperity, while securing and safeguarding
peace for America and all mankind. The views expressed in its publications
are entirely those of the authors and do not necessarily reflect the views of
the staff, officers, or Board of Overseers of the Hoover Institution.
www.hoover.org
Hoover Institution Press Publication No. 673
Hoover Institution at Leland Stanford Junior University,
Stanford, California 94305-6003
Copyright © 2016 by the Board of Trustees
of the Leland Stanford Junior University
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Library of Congress Cataloging-in-Publication Data
Names: Shultz, George Pratt, 1920– editor.
Title: Blueprint for America / edited by George P. Shultz.
Other titles: Hoover Institution Press publication ; 673.
Description: Stanford, CA : Hoover Institution Press, 2016. | Series: Hoover
Institution Press publication ; no. 673 | Includes bibliographical
references and index.
Identifiers: LCCN 2016029379 | ISBN 9780817919955 (pbk. : alk. paper) |
ISBN 9780817919962 (EPUB) | ISBN 9780817919979 (Mobipocket) |
ISBN 9780817919986 (EPDF)
Subjects: LCSH: United States—Politics and government—21st century. |
United States—Economic policy. | National security—United States. |
United States—Foreign relations—21st century.
Classification: LCC E893 .B58 2016 | DDC 320.60973—dc23
LC record available at https://lccn.loc.gov/2016029379
CoNTENTS
Acknowledgments vii
Introduction ix

ChAPTER 1
The domestic Landscape Michael J. Boskin 1
IN BRIEf
Spending George P. Shultz 15

ChAPTER 2
Entitlements and the Budget John F. Cogan 19

ChAPTER 3
A Blueprint for Tax Reform Michael J. Boskin 27

ChAPTER 4
Transformational health Care Reform Scott W. Atlas 35

ChAPTER 5
Reforming Regulation Michael J. Boskin 51

ChAPTER 6
National and International Monetary Reform
John B. Taylor 59
ChAPTER 7
A Blueprint for Effective financial Reform
John H. Cochrane 71
IN BRIEf
our National human Resources George P. Shultz 85

ChAPTER 8
Education and the Nation’s future Eric A. Hanushek 89

ChAPTER 9
Trade and Immigration John H. Cochrane 109
IN BRIEf
A World Awash in Change George P. Shultz 127

ChAPTER 10
Restoring our National Security
James O. Ellis Jr., James N. Mattis, and Kori Schake 137

ChAPTER 11
Redefining Energy Security James O. Ellis Jr. 151

ChAPTER 12
diplomacy in a Time of Transition James E. Goodby 171
CLoSING NoTE
The Art and Practice of Governance George P. Shultz 187
Notes/References 193
Contributors 207
Index 213
ACkNoWLEdGMENTS
In their 1972 political economy treatise on the Garbage Can
Theory of complex organizational decision-making, Michael
Cohen, James March, and Johan Olsen used the example of the
American university to describe a fraught nature whereby “active
decision-makers and problems track one another through a series
of choices without appreciable progress in solving problems.” It is
an apt model.
In that light, we would like to recognize our colleagues at the
Hoover Institution for their help keeping the authors’ efforts on
time and on track—and this Blueprint out of the garbage can:
Tunku Varadarajan, Susan Schendel, and David Fedor, along with
Chris Dauer and Barbara Arellano’s team at Hoover Press.
George P. Shultz was the impetus and is the continued driv-
ing force for this Blueprint. His counsel and friendship—and a
lucid optimism toward American faculties—are an inspiration.
The Authors
hoover institution
Stanford University
vii

INTRodUCTIoN
Although the word “blueprint” originally referred to a detailed
architectural or mechanical plan, it has grown to acquire a more
metaphorical meaning. We have chosen the word deliberately be-
cause it conveys our intent to offer a coherent set of ideas for the
rebuilding of America. This book offers a plan for civic, economic,
and security architecture in the broadest sense, for the construc-
tion of a solvent America that this generation can bequeath with-
out guilt to the next.
America has long offered a political and economic example to
the rest of the world. From its earliest days, its political principles
have been rooted in universality, not narrow nationalism; and
over the years, it has thrown its doors open to people from every
corner of the globe. There is a reason why America draws immi-
grants not only from lands that are poorer and less well-governed
than our own, but also from places where people fare well.
But this American ability to inspire—which we call Exception-
alism—is not automatic. It takes continued efforts to be realized
in a changing world. We face challenges today. Washington is rent
along partisan lines, seemingly unwilling to work toward useful
compromise. This ideological partisanship is compounded by de-
mographic changes that are prone to exploitation by populists on
the left and right. A deep recession and an anemic recovery have
shaken widespread faith in policies and principles that have served
this country admirably for generations.
ix