NEW YORK ( TheStreet) -- In a recent article, I highlighted a number of problems the U.S. faces as it moves into the 21st Century. Many readers were troubled that I identified problems but offered no solutions. In actual fact, I have given careful thought to what can be done about each problem, and my ideas are presented below.

Let me start with what I ended my last article with: Is the sun setting on the U.S. Empire? Probably. But there are far worse things that could happen, both for the U.S. and the World.

Energy Dependency

Per capita, the U.S. consumes almost four times as much oil as other OECD countries. What to do?
  • Impose an additional $3 tax per gallon on both gas and diesel fuel. It would generate $512 billion annually and significantly cut into U.S. gas consumption.
  • Get serious about alternate fuels. Research conducted by Shanghai Jiaotong University concluded that solar water heaters in Shanghai cost 70% less to operate than electric water heaters. The U.S. should introduce its own subsidies so solar water heaters cost 70% less to operate than electric water heaters.
  • Pass a federal law, like the one that now exists in Hawaii, so that all new homes are required to install solar water heaters.

Foreign Policy

Serious problems started in Vietnam: 55,000 Americans were lost; more than 2 million Vietnamese were killed; and the U.S. pulled out with nothing accomplished. The Cold War ended when the USSR economy collapsed. In the Middle East, the U.S. is not popular.

What to do?
  • Reinstate the draft. Right now, the military attracts children from low-income families. What happens in U.S. wars does not matter to most Americans. It is summarized in short news clips that go in one ear and out the other. With the draft, better-educated, higher-income families with political clout will start questioning where their drafted children will be sent. Remember the Vietnam War protests? A lot of it had to do with the draft. The protest that finally got the U.S. out of Vietnam was fueled by parents who started thinking about whether they wanted their children fighting in Vietnam.
  • Stop trying to affect an Israeli/Palestinian two-country solution by offering bribes to Israel. Israel is not ready to accept a Palestinian state, and consequently, it is unseemly to offer Israel 20 F-35 fighter jets as part of a diplomatic effort to revive direct peace talks between Israel and the Palestinian Authority. Such offers accomplish nothing and generate more hatred of the U.S. in the Middle East.

Immigration Policy

10 million illegal workers are not going to be sent home. What to do?
  • Make them legal, and require all American to have ID cards.
  • Stem the flow of illegal immigrants by making it a serious offense for anyone to hire a worker without an ID card. (The U.S. Chamber of Commerce along with a lot of us who employ "landscape gardeners" will not like this.)

Health Care

The U.S. spends far more than any other developed nation on health care, and its health outcomes are the worst of any developed nation. I am writing a series of articles on this subject. Major changes are needed, and they will be set forth and explained in Part 5 of the series to be published in the next 10 days.


U.S. test scores on reading, math and science are low relative to other developed nations. I don't know what to do about this. I don't think more money is the answer. Looking at Table 1, I guess the problems stem from students' lack of motivation and family support.

US Grad Rates

Debt Dependency

The U.S. unemployment rate is 9%-10%. I am more worried about U.S. unemployment than I am about U.S. debt. To increase jobs, I recommend:
  • The federal government should continue to run large deficits until there are four consecutive months of private-sector job growth of at least 200,000 each month.
  • This money printing effort should weaken the dollar internationally and start bringing manufacturing jobs back to the U.S. (For more on this, see my previous article.)


Two-thirds of Americans are overweight and one-third are obese.

73% of U.S. agricultural subsidies go to meat and dairy products, with grains getting 13%. Vegetables and fruits get less than 1% of the subsidies.

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