Saving a national health insurance plan. It is the year 2020 and you have just been elected President of Pcoria, a small island nation. Congratulations! Your country has a health care system like the one in the US, except much smaller. The government has a program calledMedisure designed to provide insurance for the old and the very old for free. Unlike the American Medicare system, the recipients of Medisure do not face any cost-sharing; that is, recipients pay nothing. To finance the system, each young person pays §1,000 in taxes into the Medisure trust fund. According to your political opponents, the trust fund, with a current balance of §1million, will reportedly go bankrupt any day now. You are up for re-election soon and have the unenviable task of saving Medisure. Table 19.3 contains demographic information about your island.

Your island also has some unique features:
• There is full employment for everymember of the young generation, no matter how high taxes get; all of them are able to pay the full §1,000 tax for Medisure.
• There is no inflation and your trust fund does not earn interest.
• Each year,