June 8, 2010

America in Crisis
Debt 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 € Wealth creation € Economic burdens € Debt € What can we do?
€ Bit

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
32 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 € 1773 Boston Tea Party € 1775 - 1783 Revolutionary War € 1788 US Constitution Adopted
€

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:
y Grow/harvest from earth y Extract from earth y Manufacture from grow/extract y Labor to do above y Competition brings improvements

Wealth Creation
Wealth Creation = Jobs = Economic Growth = More Wealth Creation = Economic Growth = More Jobs We must promote wealth creation to get growth & jobs

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

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 $13.1 Trillion € $8.6 Trillion to public/foreigners € $4.5 Trillion to other Gov¶t agencies, principally Social Security Fund € Projected to be $20.0 Trillion 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 .930 2,684 4,177 5,662 10,700

Trillion Trillion Trillion Trillion Trillion Trillion

13,100 Trillion

A Brief History of US Debt
Prior to GWBush: € GWBush years: € BHObama months: € Total Debt Today:
€

$ 5.8 Trillion $ 4.9 Trillion $ 2.4 Trillion $13.1 Trillion $ 51 Billion $ 150 Billion

GWB ave/mo: € BHO ave/mo:
€

National Debt per employee
Total debt today € Total employees
€ €
€

$13.1 Trillion 101,000,000

Debt per employee is calculated
$13,100,000,000,000/101,000,000 =

$129,703 per employee!

Exports per capita
Netherlands € Germany € South Korea € France € Italy € Britain € Japan € United States
€

$23,400 14,500 7,200 7,100 6,400 5,800 4,100 3,200

What 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
€ €

Deficits = Debt = Destruction Remedies:
y y y y

Sacrifice and Frugality Bankruptcy for insolvent entities 5 + 10 + 15 = -5% debt repayment Constitutional amendments

Balanced budget Term limits Restrictions on federal/state mandates

www.thefundamentals.us
€

Our proposals:
y 5+10+15 = -5% debt repayment y 5 % reduction in all entitlements y 10% reduction in Gov¶t employees y 15% reduction in Gov¶t spending y 5% debt repayment program y NO NEW (VAT) TAXES

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 € Be prepared for a long fight

www.thefundamentals.us