President George W. Bush's nominee was approved by a simple show of hands after he vowed to make the US economy more globally competitive by making reforms of Social Security and Medicare a top priority.

Paulson, 60, said prior to his confirmation that the government needed to address the "long-term underfunded obligations of Social Security and Medicare that threaten to unfairly burden future generations."

He also vowed to keep taxes low and collect them in a more simplified manner.

"The US economy will be stronger if we can continue to foster an entrepreneurial spirit and culture which generates innovation, risk-taking, and productivity growth," he said.