America is being pushed into financial ruin due to the cost of entitlement programs. Programs like Medicare, Medicaid and Social Security are on shaky ground despite the late 1990s reformation of the traditional bloated federal welfare system. Eventually, the government will have to raise taxes by as much as 50 percent if we do not start taking radical action immediately because the aforementioned programs face total unfunded liabilities topping $100 trillion.

Government desperately tries to act as the primary welfare agency under the pretext of providing social insurance. This must come to an end. Generally speaking, the first instance to provide for the needy should be private charity. Americans donated more than $300 billion to charity in 2007 alone, which is an increase compared to the year of 2006 despite economic uncertainty. Regulatory barriers inhibiting private charity should be eliminated by the government and tax deductions should be increased to maintain private philanthropy.

As far as Medicaid, Medicare, and Social Security are concerned, government should focus on allowing private choice in health care and retirement account. As baby boomers retire, benefits must also be adapted to reflect demographic changes and emphasize care for the most needy ones.