In this intriguing WSJ Opinion Journal op-ed, American Enterprise Institute scholar Charles Murray — author of the new book, In Our Hands (AEI Press 2006) — takes dead aim at the American welfare state:

This much is certain: The welfare state as we know it cannot survive. No serious student of entitlements thinks that we can let federal spending on Social Security, Medicare and Medicaid rise from its current 9% of GDP to the 28% of GDP that it will consume in 2050 if past growth rates continue. The problems facing transfer programs for the poor are less dramatic but, in the long term, no less daunting; the falling value of a strong back and the rising value of brains will eventually create a class society making a mockery of America’s ideals unless we come up with something more creative than anything that the current welfare system has to offer.
So major change is inevitable — and Congress seems utterly unwilling to face up to it. Witness the Social Security debate of last year, a case study in political timidity. Like it or not, we have several years to think before Congress can no longer postpone action. Let’s use it to start thinking outside the narrow proposals for benefit cuts and tax increases that will be Congress’s path of least resistance.

Murray goes on to lay out his proposal, which he dubs as “the plan”:

[The federal government] makes a $10,000 annual grant to all American citizens who are not incarcerated, beginning at age 21, of which $3,000 a year must be used for health care. Everyone gets a monthly check, deposited electronically to a bank account. If we implemented the Plan tomorrow, it would cost about $355 billion more than the current system. The projected costs of the Plan cross the projected costs of the current system in 2011. By 2020, the Plan would cost about half a trillion dollars less per year than conservative projections of the cost of the current system. By 2028, that difference would be a trillion dollars per year.

Murray concedes that there are many technical issues that need to be sorted out before implementing such a system, but addressing those is not the purpose of his piece. Rather, he addresses why such an alternative to the current system of federal entitlements is preferable from a policy standpoint:

[D]o we want a system in which the government divests itself of responsibility for the human needs that gave rise to the welfare state in the first place? I think the reasons for answering “yes” go far beyond the Plan’s effects on poverty, retirement and health care. Those issues affect comparatively small minorities of the population. The more profound problem facing the world’s most advanced societies is how their peoples are to live meaningful lives in an age of plenty and security. . .
If you believe . . . that the purpose of life is to while away the time as pleasantly as possible, . . . then it is reasonable to think that the purpose of government should be to enable people to do so with as little effort as possible. But if you agree with me that to live a human life can have transcendental meaning, then we need to think about how human existence acquires weight and consequence.
. . . Aristotle was right. Virtue is a habit. Virtue does not flourish in the next generation because we tell our children to be honest, compassionate and generous in the abstract. It flourishes because our children practice honesty, compassion and generosity in the same way that they practice a musical instrument or a sport. That happens best when children grow up in a society in which human needs are not consigned to bureaucracies downtown but are part of life around us, met by people around us.

Read the entire piece. Regardless of whether you agree with Murray’s plan, his ideas on the underlying individual and societal qualities that American governmental policies should promote is the type of clear thinking that we need in addressing the inevitable reorganization of the American welfare state.