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Naperville TEA PatriotsSpecial Event
National Debt for Dummies
July 12, 2010
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Recent Headlines
Washington Post, July 12: Debt is a cancer
Financial Times, July 4: Germany focuses oncutting spending
NYTimes, July 3: Illinois Stops Paying its Bills,But Cant Stop Digging Hole
Chicago Tribune, May 25: Europe governmentsmove to cut deficits
Wall Street Journal, April 28: Shared SacrificesWill Solve the Debt Crisis
Whats Going ON?
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Massive Debt
This is what debt of
$13.2 Trillion looks like:
$13,200,000,000,000.00
America, in 234 years, has never owedso much to so many
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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 yourwants
Help others who have needs
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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
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Wealth Creation - Burden
Too many non workers
Protection of special interests via anticompetition rules/laws
Taxes/Litigation
Wars, which lead to -
Debt Bad Leadership
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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
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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
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Causes = Protected Groups
Civil rights
Womens rights
Consumer rights
Environment
Disabled rights
Employment
Housing rights Education rights
Voting rights
Farmers rights
Welfare rights
Pension rights
Health care
Veterans rights
Union rights
Animal rights Gay rights
Immigrant rights
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Special Interests = Rising costs
SEIU
AFSCME AFL-CIO
NEA
AFT
NTEU
Postal Workers
Trial Lawyers
Medical law
suits Pharmaceutical
Farmers union
Oil companies
Bailouts
Banking
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Attorneys per capita
USA 265Brazil 326
New Zealand 391Spain 395Italy 488United Kingdom 401
Germany 593France 1,403
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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 electedofficials; bureaucrats; government employees
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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
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Solutions - Legislation
Bankruptcy facilitation for governments
Annual independent audits of governments;legal accountability; privatization/competition
Federal Tort Reform
Loser pays rulesLimitations on non economic damages
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National Debt at end of:
Ford $ .065 Trillion
Carter .930 Trillion
R
eagan 2,684 Trillion Bush I 4,177 Trillion
Clinton 5,662 Trillion
Bush II 10,700 Trillion
And now:
Obama 13,200 Trillion
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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
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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!
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Solutions - Fiscal
Cut spending as follows: 5% reduction entitlement programs
10% reduction US government employment
15% reduction all other US government spendingConvert defined benefit pension plans to social
security and defined contribution plans
Reduction/elimination of government subsidiesAgriculture, education, arts and medicine
Any state with a defined benefit public pension plan
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Solutions - Fiscal
After preceding cuts are implemented in full; raisetax 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 thencommence a debt repayment program
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www.thefundamentals.us
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