This is Jerry Goldman, the principal author of Chapter 19, "Domestic Policy." This topic is enormous, so I have cut it down to a manageable size by choosing government programs on the basis of what they cost.

Social Security policy has many parts and most of the parts cost the government--and therefore, us, the taxpayers--enormous sums. Benefits for retired workers--income, medical care, and prescription drugs--take a giant bite from the national budget. With the anticipated retirement of the baby-boom generation, there will be fewer workers to support a growing number of beneficiaries. These events force difficult choices: reduce benefits or increase the tax burden, or both? This is a great challenge and policymakers know that government must act soon. How soon before the crisis arrives?

Health care costs continue to take a staggering part of national and state budgets. This is health care for people who cannot afford care whether they are working or retired. There has been much talk about reforming this approach to health care, but so far no politician has managed to bell the cat.

When you read this chapter, bear in mind how policies designed for the poor have helped or hindered the quest to end poverty in America. How do the underlying values of freedom and equality explain the choices among policy alternatives?