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June 8, 2010

America in Crisis

› 9ebt is $13.1 Trillion


› Obama projects big rising debt
› Unheard of levels of government
employment
› 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
$13.1 Trillion looks like:

$13,100,000,000,000.00

America, in 234 years, has never


owed so much to so many
America in Crisis - Agenda

of History
› it
› Wealth creation
› Economic burdens
› 9ebt
› What can we do?
xiscal 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
¦istory Lesson
32 years of history

› 1756-1763 Seven Years War


› 1756 ritish 9ebt £ 75 Million
› 1763 ritish 9ebt £800 Million
› 1764 - 1767 Sugar Act, Stamp Act and
Townshend Acts
› 1773 oston Tea Party
› 1775 - 1783 Revolutionary War
› 1788 US Constitution Adopted
ë   
 
   

  

   


   




 
   
 
  

  

½ealth Creation
› xour basic ways to create wealth:
× Grow/harvest from earth
× Extract from earth
× Manufacture from grow/extract
× Labor to do above

× Competition brings improvements


½ealth Creation
Wealth Creation = Jobs =
Economic Growth = More
Wealth Creation = Economic
Growth = More Jobs

We must promote wealth creation to


get growth & jobs
½ealth Creation - Burden

› Too many non workers


› Protection of special interests via
anti competition rules/laws
› Taxes/Litigation
› Wars, which lead to -
› 9ebt
› ad Leadership
½orkers/Non½orkers
› 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 urden
Causes = Special Interests
› Civil rights › xarmer¶s rights
› Women¶s rights › Welfare rights
› Consumer rights › Pension rights
› Environment › Health care
› 9isabled rights › Veteran¶s rights
› Employment › Union rights
› Housing rights › Animal rights
› Education rights › Gay rights
› Voting rights › Immigrant rights
Special Interests raise cost of
everything
› SEIU › Trial Lawyers
› AxSCME › Medical lawsuits
› AxL-CIO › Pharmaceutical
› NEA › xarmers union
› AxT › Oil companies
› NTEU › ailouts
› Postal Workers › anking
Attorneys per capita

USA 265
razil 326
New Zealand 391
Spain 395
Italy 488
United Kingdom 401
Germany 593
xrance 1,403
½ho Pays the Taxes?
1979 2006
Taxes Taxes
Top 5%: 30% Top 5%: 45%
Top 40%: 77% Top 40%: 86%

Social security Social security


Top 5%: 8% Top 5%: 14%
Top 40%: 63% Top 40%: 68%
The Debt Burden

› Today the US owes $13.1 Trillion


› $8.6 Trillion to public/foreigners
› $4.5 Trillion to other Gov¶t agencies,
principally Social Security xund
› Projected to be $20.0 Trillion by 2020

Let¶s take a look at this debt


National Debt at end of:
› xord $ .065 Trillion
› Carter .930 Trillion
› Reagan 2,684 Trillion
› ush I 4,177 Trillion
› Clinton 5,662 Trillion
› ush II 10,700 Trillion
And now:
› Obama 13,100 Trillion
A Brief ¦istory of US Debt

› Prior to GWush: $ 5.8 Trillion


› GWush years: $ 4.9 Trillion
› HObama months: $ 2.4 Trillion
› Total 9ebt Today: $13.1 Trillion

› GW ave/mo: $ 51 illion


› HO ave/mo: $ 150 illion
National Debt per employee

› Total debt today $13.1 Trillion


› Total employees 101,000,000

› 9ebt per employee is calculated


› $13,100,000,000,000/101,000,000 =

$129,703 per employee!


xports per capita
› Netherlands $23,400
› Germany 14,500
› South Korea 7,200
› xrance 7,100
› Italy 6,400
› ritain 5,800
› Japan 4,100
› United States 3,200
½hat is the real answer?

› Live within our means


› Repay debt
› Sacrifice and frugality
› Good leadership
› Insist on objectives and measure
results independently
www.thefundamentals.us
› 9eficits = 9ebt = 9estruction
› Remedies:
× Sacrifice and xrugality
× ankruptcy for insolvent entities
× 5 + 10 + 15 = -5% debt repayment
× Constitutional amendments
ż alanced budget
ż Term limits
ż Restrictions on federal/state mandates
www.thefundamentals.us

› Our proposals:
× 5+10+15 = -5% debt repayment
× 5 % reduction in all entitlements
× 10% reduction in Gov¶t employees
× 15% reduction in Gov¶t spending
× 5% debt repayment program
× NO NEW (VAT) TAXES
½hat can I do?
› Attend meetings and rallies
› Challenge the status quo
› Vote against tax increases
› 9isplay bumper stickers, yard
signs
› Write a few checks to provide
some funding to these efforts
› e prepared for a long fight
www.thefundamentals.us