Lincoln - Way Town Hall Meeting

April 22, 2010

America in Crisis
‡ Debt is $12.8 Trillion ‡ Obama projects endless rising debt ‡ Unheard of levels of government employment ‡ All government pension costs out of control ‡ Litigation out of control ‡ Education and health care costs out of control

America in Crisis
This is what debt of $12.8 Trillion looks like:

$12,800,000,000,000.00
America, in 234 years, has never owed so much to so many

America in Crisis - Agenda ‡ Bit of History ‡ Wealth creation ‡ Economic burdens ‡ Debt ‡ What can we do?

Norman J. Kost
‡ Who am I?
‡ Father, soon to be Grandfather, Business man and Amateur Golfer ‡ MBA, CPA with one hole in one ‡ 40+ years in finance, economics, accounting and business strategy ‡ Retired; owner of software company ‡ Fiscal conservative ‡ Essayist: www.thefundamentals.us

Fiscal Conservative
‡ Live within your means ‡ Spend others money as your would spend your own ‡ Repay debts ‡ Save for rainy day ‡ Meet your needs and prioritize your wants ‡ Help others who have needs

History Lesson
(15 years of history) ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ 1773 1774 1775 1776 1777 1783 1786 1788 Boston Tea Party First Continental Congress Shot heard round the world Declaration of Independence Articles of Confederation British surrender Shays rebellion USConstitution adopted

History Lesson ² earlier
17 years of history

‡ ‡ ‡ ‡

1756-1763 Seven Years War 1756 British Debt £ 75 Million 1763 British Debt £800 Million 1764-1767 Sugar Act, Stamp Act and Townshend Acts ‡ 1770 Boston Massacre ‡ 1773 Boston Tea Party

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 Creation
‡ Four basic ways to create wealth:
‡ ‡ ‡ ‡ ‡ Grow/harvest from earth Extract from earth Manufacture from grow/extract Labor to do above Competition improvements

Economic Growth = Jobs Jobs = Economic Growth

Wealth Creation - Burden
‡ Too many non workers ‡ Protection of special interests via anti competition rules/laws ‡ Taxes/Litigation ‡ Trade restrictions ‡ Debt ‡ Bad Leadership

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 = Special Interests
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Civil rights Women·s rights Consumer rights Environment Disabled rights Employment Housing rights Education rights Voting rights ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Farmer·s rights Welfare rights Pension rights Health care Veteran·s rights Union rights Animal rights Gay rights Immigrant rights

Special Interests raise cost of everything
‡ ‡ ‡ ‡ ‡ ‡ ‡ SEIU AFSCME AFL-CIO NEA AFT NTEU Postal Workers ‡ ‡ ‡ ‡ ‡ ‡ ‡ Trial Lawyers Medical lawsuits Pharmaceutical Farmers union Oil companies Bailouts Banking

Attorneys per capita
USA 265 Brazil 326 New Zealand 391 Spain 395 Italy 488 United Kingdom 401 Germany 593 France 1,403

Who Pays the Taxes?
1979 Taxes Top 5%: 30% Top 40%: 77% Social security Top 5%: 8% Top 40%: 63% 2006 Taxes Top 5%: 45% Top 40%: 86% Social security Top 5%: 14% Top 40%: 68%

The Debt Burden
‡ Today the US owes $12.8 Trillion ‡ $8.3 Trillion to public/foreigners ‡ $4.5 Trillion to other gov·t agencies, principally Social Security Fund ‡ $12.8 projected to be $20.0 by 2020 Let·s take a look at this debt

National Debt at end of:
‡ Ford ‡ Carter ‡ Reagan ‡ Bush I ‡ Clinton ‡ Bush II And now: ‡ Obama $ .065 Trillion .930 Trillion 2,684 Trillion 4,177 Trillion 5,662 Trillion 10,700 Trillion 12,800 Trillion

A Brief History of US Debt
‡ ‡ ‡ ‡ Prior to GWBush: $ 5.8 Trillion GWBush years: $ 4.9 Trillion BHObama months: $ 2.1 Trillion Total Debt Today: $12.8 Trillion $ 51 Billion $140 Billion

‡ GWB ave/mo: ‡ BHO ave/mo:

National Debt per capita
‡ ‡ ‡ ‡ ‡ ‡ ‡ Ford Carter Reagan Bush I Clinton Bush II Obama $ 2,997 4,094 10,979 16,379 20,067 35,153 40,101

National Debt per employee
‡ Total debt today ‡ Total employees $12.8 Trillion 101,000,000

‡ Debt per employee is calculated ‡ $12,800,000,000,000/101,000,000 =

$126,733 per employee!

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

What is the real answer?
‡ ‡ ‡ ‡ ‡ ‡ ‡ Good leadership Live within our means Good leadership Repay debt Sacrifice and frugality Good leadership Insist on objectives and results

www.thefundamentals.us
‡ Deficits = Debt = Destruction ‡ Remedies:
‡ ‡ ‡ ‡ Sacrifice and Frugality Bankruptcy for insolvent entities 5 + 10 + 15 = -5% debt repayment Constitutional amendments
‡ Balance budget ‡ Term limits ‡ Restrictions on federal/state mandates Require 2/3rds congress/states for proposal; and, 3/4ths of states for ratification Contact us: thefundamentalsus@gmail.com

www.thefundamentals.us
‡ Our proposals:
‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ 5+10+15 = -5% debt repayment Balanced budget and sunset law Loser pays; limit on damages Term limits on congress Measurable objectives on all laws Limits on federal mandates No interstate taxation No federal sales tax or VAT

What can I do?
‡ ‡ ‡ ‡ Attend meetings and rallies Challenge the status quo Vote against tax increases Display bumper stickers, yard signs ‡ Write a few checks to provide some funding to these efforts

I want to do more«
‡ Study issues, read and learn ‡ Contact your elected officials ‡ Write letters and insist that candidates take measurable steps to stop spending and repay debt (see listing at www.thefundamentals.us ) ‡ Support groups which specialize in fiscal responsibility/lower government spending

Still more«.
‡ Become active in your local political groups - city or county board of trustees, school board, park districts, political party ‡ Volunteer to participate on committees and special advisory boards ‡ Campaign for good politicians ‡ Run for office

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.
TJefferson