In 2004 the federal government ran a budget deficit of $112 billion. This excess of government spending over government revenue is only the tip of an iceberg. Log-term projections of the government’s budget show that under current law the government will spend vastly more than it will receive in tax revenue in the decades ahead. As a percentage of gross domestic product the total income in the economy taxes are projected to be about constant. But government spending as a percentage of GDP is projected to rise gradually but substantially over the next several decades. One reason for the rise in government spending is that Social Security and Medicare provide significant benefits for the elderly population which is increasing in size. Over the past half century medical advances and lifestyle improvements have greatly increased life expectancy. In 1950 a man aged 65 could expect to live for another 13 years now he can expect to live another 17...