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    Naperville TEA PatriotsSpecial Event

    National Debt for Dummies

    July 12, 2010

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    Recent Headlines

    Washington Post, July 12: Debt is a cancer

    Financial Times, July 4: Germany focuses oncutting spending

    NYTimes, July 3: Illinois Stops Paying its Bills,But Cant Stop Digging Hole

    Chicago Tribune, May 25: Europe governmentsmove to cut deficits

    Wall Street Journal, April 28: Shared SacrificesWill Solve the Debt Crisis

    Whats Going ON?

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    Massive Debt

    This is what debt of

    $13.2 Trillion looks like:

    $13,200,000,000,000.00

    America, in 234 years, has never owedso much to so many

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    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 yourwants

    Help others who have needs

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    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

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    Wealth Creation - Burden

    Too many non workers

    Protection of special interests via anticompetition rules/laws

    Taxes/Litigation

    Wars, which lead to -

    Debt Bad Leadership

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    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

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    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

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    Causes = Protected Groups

    Civil rights

    Womens rights

    Consumer rights

    Environment

    Disabled rights

    Employment

    Housing rights Education rights

    Voting rights

    Farmers rights

    Welfare rights

    Pension rights

    Health care

    Veterans rights

    Union rights

    Animal rights Gay rights

    Immigrant rights

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    Special Interests = Rising costs

    SEIU

    AFSCME AFL-CIO

    NEA

    AFT

    NTEU

    Postal Workers

    Trial Lawyers

    Medical law

    suits Pharmaceutical

    Farmers union

    Oil companies

    Bailouts

    Banking

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    Attorneys per capita

    USA 265Brazil 326

    New Zealand 391Spain 395Italy 488United Kingdom 401

    Germany 593France 1,403

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    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 electedofficials; bureaucrats; government employees

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    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

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    Solutions - Legislation

    Bankruptcy facilitation for governments

    Annual independent audits of governments;legal accountability; privatization/competition

    Federal Tort Reform

    Loser pays rulesLimitations on non economic damages

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    National Debt at end of:

    Ford $ .065 Trillion

    Carter .930 Trillion

    R

    eagan 2,684 Trillion Bush I 4,177 Trillion

    Clinton 5,662 Trillion

    Bush II 10,700 Trillion

    And now:

    Obama 13,200 Trillion

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    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

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    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!

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    Solutions - Fiscal

    Cut spending as follows: 5% reduction entitlement programs

    10% reduction US government employment

    15% reduction all other US government spendingConvert defined benefit pension plans to social

    security and defined contribution plans

    Reduction/elimination of government subsidiesAgriculture, education, arts and medicine

    Any state with a defined benefit public pension plan

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    Solutions - Fiscal

    After preceding cuts are implemented in full; raisetax 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 thencommence a debt repayment program

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    www.thefundamentals.us

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