Naperville TEA Patriots

Special Event

“National Debt for Dummies”

July 12, 2010

www.thefundamentals.us
Recent Headlines
 Washington Post, July 12: Debt is a cancer
 Financial Times, July 4: Germany focuses on
cutting spending
 NYTimes, July 3: “Illinois Stops Paying its Bills,
But Can’t Stop Digging Hole”
 Chicago Tribune, May 25: “Europe governments
move to cut deficits”
 Wall Street Journal, April 28: “Shared Sacrifices
Will Solve the Debt Crisis”
 What’s Going ON?
Massive Debt
This is what debt of
$13.2 Trillion looks like:

$13,200,000,000,000.00

America, in 234 years, has never owed

so much to so many
Fiscal Conservative
 Live within your means

 Spend others money as you spend your own

 Repay debts; save for rainy day

 Meet your needs and prioritize your wants

 Help others who have needs

It is incumbent on every
generation to pay its own
debts as it goes.

A principle which if acted on

would save one-half the
wars of the world.
TJefferson
Wealth and Jobs Creation
 Four basic ways to create wealth:
 Grow/harvest from earth
 Extract from earth
 Manufacture from grow/extract
 Labor to do above

 Competition brings improvements

 Combination brings economic growth
Wealth Creation - Burden

 Too many non workers

 Protection of special interests via anti
competition rules/laws
 Taxes/Litigation
 Wars, which lead to -
 Debt
 Bad Leadership
Exports per capita
 Netherlands $23,400
 Germany 14,500
 South Korea 7,200
 France 7,100
 Italy 6,400
 Britain 5,800
 Japan 4,100
 United States 3,200
Workers/NonWorkers
 Total US Population:
310,000,000

 Total US Workforce: 150,000,000

(citizens between 17 and 65)
 18% are un(under)employed: 27,000,000
 Government employees 22,000,000
 Wealth creation employment 101,000,000
 All others being supported 209,000,000

Economic Burden
Causes = Protected Groups
 Civil rights  Farmer’s rights
 Women’s rights  Welfare rights
 Consumer rights  Pension rights
 Environment  Health care
 Disabled rights  Veteran’s rights
 Employment  Union rights
 Housing rights  Animal rights
 Education rights  Gay rights
 Voting rights  Immigrant rights
Special Interests = Rising costs

 SEIU  Trial Lawyers

 AFSCME  Medical lawsuits
 AFL-CIO  Pharmaceutical
 NEA  Farmers union
 AFT  Oil companies
 NTEU  Bailouts
 Postal Workers  Banking
Attorneys per capita

USA                265

Brazil                   326
New Zealand        391
Spain                   395
Italy                      488
United Kingdom     401
Germany              593
France             1,403
What is Wrong?
 USConstitution is ambiguous on:
 National government powers
 Fiscal matters

 Legislation process is dominated by:

 Protected classes, special interests, lobbyists,
lawyers and embedded legislators

 No legal accountability required of elected

officials; bureaucrats; government employees
Solutions - Constitution
 More specificity in our US Constitution

 Term Limits – 12 years cumulative

 Balanced Budget – 4 yrs; repay debt – 20 yrs

 Mandatory Sunset all National Legislation

 Redefine Enumerated Powers & limit spending;

limit or ban public unions
Solutions - Legislation
 Bankruptcy facilitation for governments

 Annual independent audits of governments;

legal accountability; privatization/competition

Federal Tort Reform

 Loser pays rules
 Limitations on non economic damages
National Debt at end of:
 Ford $ .065 Trillion
 Carter .930 Trillion
 Reagan 2,684 Trillion
 Bush I 4,177 Trillion
 Clinton 5,662 Trillion
 Bush II 10,700 Trillion
And now:
 Obama 13,200 Trillion
A Brief History of US Debt

 Prior to GWBush: $ 5.8 Trillion

 GWBush years: $ 4.9 Trillion
 BHObama months: $ 2.5 Trillion
 Total Debt Today: $13.2 Trillion

 GWB ave/mo: $ 51 Billion

 BHO ave/mo: $ 150 Billion
National Debt per employee

 Total debt today $13.2 Trillion

 Total employees 101,000,000

 Debt per employee is calculated

 $13,200,000,000,000/101,000,000 =

$130,693.00 per employee!

Solutions - Fiscal
 Cut spending as follows:
 5% reduction entitlement programs
 10% reduction US government employment
 15% reduction all other US government spending
 Convert defined benefit pension plans to social
security and defined contribution plans

Reduction/elimination of government subsidies

 Agriculture, education, arts and medicine
 Any state with a defined benefit public pension plan
Solutions - Fiscal
 After preceding cuts are implemented in full; raise
tax revenues as follows:
 1% on all income up to $100,000.00 for two years
 2 % rising to 6% on all income graduated from
$100,000.00 on up for two years
 50 cent per gallon gasoline tax for two years
 Tax charitable foundations assets 10% for two years
 Death tax of 45% on all assets over $5 million;
eliminate the charitable foundation loophole

All proceeds used to balance the budget and then

commence a debt repayment program
www.thefundamentals.us