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
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
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
