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Naperville Patriots: National Debt Insights

This document discusses the national debt crisis in the United States. It provides statistics on the current national debt level of over $13 trillion and how that compares to debt levels under previous administrations. It then analyzes some of the root causes of rising debt, such as entitlement spending, government employment levels, special interest groups, and litigation costs. Finally, it proposes several solutions to address the debt problem, including constitutional amendments, legislative reforms, spending cuts, changes to entitlement programs, tax increases, and a debt repayment plan.

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Norman Kost
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15 views24 pages

Naperville Patriots: National Debt Insights

This document discusses the national debt crisis in the United States. It provides statistics on the current national debt level of over $13 trillion and how that compares to debt levels under previous administrations. It then analyzes some of the root causes of rising debt, such as entitlement spending, government employment levels, special interest groups, and litigation costs. Finally, it proposes several solutions to address the debt problem, including constitutional amendments, legislative reforms, spending cuts, changes to entitlement programs, tax increases, and a debt repayment plan.

Uploaded by

Norman Kost
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Naperville TEA Patriots

Special Event

“National Debt for Dummies”

July 12, 2010


[Link]
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

 Competition brings improvements


 Combination brings economic growth
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
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

 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
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
[Link]

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