Social Security

President Bush’s white house effort to promote a Social Security reform was unsuccessful. It has been projected that by the year 2041 social security will no longer be able to reach its financial obligations. Although some cuts have been made to Medicare, its prescription-drug benefit still has heavy costs.

The nub of the challenge is the confluence of three long-term trends: People
are living longer, healthcare costs keep rising, and government has promised to
pay much of the tab for retirees. Prescription-drug coverage is the latest
example of promises rising faster than funding.

The current value of the government’s “fiscal imbalance” is estimated to be around $65 trillion dollars. In order to pay for this, social security and Medicare taxes deducted from paychecks would have to be doubled.


After the colonists had fought the British and established the United States of America, the nation faced its first financial challenge. A young Alexander Hamilton wsa appointed the nation's first Secretary of the Treasury. Hamilton devised a financial plan to help the nation's financial situation. He recommended that all federal debt be taken at face value, and that the federal government take over all state debt from the revolution. Hamilton proposed a tax on liquor to aid in raising revenue to cover the national debts. The formation of a national bank and a national mint was also recommended. In Hamilton's Report on Manufacturers he called for a government program aiding and encouraging the development of manufacturers.