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Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
Our Problem and Our Options
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Our Problem and Our Options

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  • 1. These Are Scary and Troubling Economic Times……
    • However, before the pundits and media drive you to jump off a bridge, please take 15 minutes to watch this slide show.
    • The show is not meant to dissuade the entrenched but to give some straight forward facts to the open minded
    • The show will open your eyes to what has really been going on with federal spending along with our recessions; and who has been doing what for who for the last 30 years that has gotten us where we are.
    • RGB
  • 2. Our High Debt & Recession and How We Really Got There
  • 3. Where Did All This Debt Come From?
    • WW II- Cold War - Korean War-Vietnam War
    • Continued Increasing Military Spending Beyond the Cold War period
    • Iraq/Kuwait War ’91-Iraq War ’03-10-Afghan War 03-10
    • Decreased Federal Revenues due to tax cuts resulting in less debt pay down
    • Runaway Entitlement Programs
    • Near U.S. Catastrophic Financial Failure
    • Labor Out Sourcing & High Unemployment Relief
    • Runaway Healthcare Costs
    • High Personal Debt – Minimal Personal Savings
    • Deregulation and Lack of Congressional Oversight
  • 4. Wars Are Expensive….Especially The Cold Ones
    • WW II cost $2.3 Trillion
    • Cold War cost $12.8 trillion 1945-91
    • Korean War cost $111 Billion
    • Vietnam War cost $584 Billion
    • Desert Storm War cost $54 Billion
    • Iraq War has cost $742 Billion to date
    • Afghan War has cost $326 Billion to date
  • 5. Summary Of War Debts….
    • We owed $14.1 Trillion debt from WW II and the Cold War between 1945 and 1980
    • We Accumulated Another $695 Billion from the Korean and Vietnam Wars
    • Amazingly enough though, by 1980 we had paid off over $13.2 trillion of our total federal debt and had less than $1 trillion to go!
  • 6. You Mean We Were At The Finish Line Paying Off The Debt When ..
    • The Tax Act of 1981 was enacted wherein the top marginal income tax rates were reduced by 20%
    • Followed by Tax Equity & Fiscal Responsibility Act of 1982 that borrowed almost $1 Trillion to offset the tax cut of 1981 due to a shortfall to the budget
    • Followed by the Tax Reform Act 1986 that further reduced the marginal tax rate from 50% to 36% which paved the way for debt pay down shortfalls due to….
    • 39% annual increase in military spending for 7 yrs
    • Both of which resulted in increasing the debt to $3 trillion from 1982-1988
    • Leaving debt pay down to be set aside for the next administration – which did not happen
  • 7.
    • Top Marginal Tax Rate On Earned Income Was Reduced From 70% to 36% -1982-86
  • 8. Who Really Benefitted The Most From These Tax Cuts
    • The wealthy got to keep 50% more of their earnings
    • Millionaires increased 3 fold; there were 574,000 millionaires when Reagan took office; 1,500,000 when he left
    • We had 38,000 deca-millionaires and over 100,000 when he left
    • We had one billionaire when Reagan took office; 51 when he left
  • 9. Bottom Line
    • The wealthy went from paying 70% income tax in 1980 to 36% in 1986
    • The income for the lowest 10% dropped 11% from 1977 to 1990
    • The average wkly earnings of non-supervisory workers went from $274 in 1980 to $259 in 1989.
    • The average hourly wages fell from $7.78 in 1980 to $7.52 in 1989
  • 10. Wage Inequity
    • CEO’s salaries went from 30 times the avg worker in 1980 to 140 times in 1988
    • Earnings for long term factory workers dropped 2% from 1980 to 1988
    • New workers’ earnings dropped 15.8%
    • Income for people earning over a $1MM increased by 243%
    • Poverty level increased from 29 to 31 million citizens
    • In 1989, the top 1% owned more than the bottom 90% combined
  • 11. Reaganomics Wages …….
    • Percent change:
    • 1977- 1980- 1985-
    • Decile 1977 1980 1985 1990 90 90 90
    • 1st $4,277 3,852 3,568 3,805 -11.0% -1.2 6.7
    • 2nd 8,663 7,982 7,717 8,251 -4.8 3.4 6.9
    • 3rd 13,510 12,530 12,230 13,110 -3.7 4.6 7.2
    • 4th 18,980 17,240 17,010 18,200 -4.1 5.6 7.0
    • 5th 24,520 22,380 22,070 23,580 -3.8 5.4 6.9
    • 6th 30,430 28,100 27,620 29,490 -3.1 5.0 6.8
    • 7th 36,880 34,370 34,620 36,890 0.0 7.3 6.5
    • 8th 44,820 42,050 43,370 46,280 3.3 10.1 6.7
    • 9th 56,360 53,660 56,190 59,860 6.2 11.6 6.5
    • 10th 111,100 107,900 123,200 133,200 19.9 23.4 8.2
    • top 5% 149,500 146,000 172,100 187,400 25.4 28.3 8.9
    • top 1% 319,100 321,400 415,700 463,800 45.4 44.3 11.6
    • All 34,830 32,850 34,480 37,050 6.4 12.8 7.4
  • 12. So Who Ended Up With What…..
    • The top 2% of the people got to keep $190 Billion more in 1982 than they did in 1980 or $1.9 Trillion through 1992
    • The bottom 98% got to pay off more of the debt and receive 5% less wages
    • Don’t forget the 2 million folks that moved below the poverty level
    • Most of all – don’t forget how we got the great move forward into de-regulation
  • 13. Debt Increases 1980 - 1992
    • We had less than $1 trillion debt when Pres. Reagan took office
    • Tax cuts reduced margin rates from 70% to 36% for the wealthy resulting in a revenue shortfall
    • Military spending was increased 39%
    • Pres Reagan left office with $2.6 trillion additional national debt
    • And the debt further increased to $4 trillion under H.W. Bush
  • 14. Debt Under Clinton & G.W. Bush
    • • Under Clinton, the National Debt decreased 9.7% from 1992 thru 2000 to $3.6 Trillion
    • Most of Clinton’s reduced debt was due to 16.7% reduction in military spending and fiscal responsibility
    • The National Debt increased 27.1% 2001 - 2009 to $10.6 Trillion under G.W. Bush.
    • Most of Bush’s increased debt due to 31% increase in military spending, Iraq War, and tax cuts that led to reduced payments of the debt
  • 15. Summary Debt 1980 - 2010
    • Total Debt was just less than $1 Trillion in 1980
    • Debt increased to $4 trillion 1980-92
    • Debt decreased to $3.6 trillion by 2000
    • Debt increased to $10.6 trillion by 2008
    • Debt increased to $13.1 trillion by 2010
  • 16. Pay Down of Our Debt 1945 – 2008
    • 1945-2008, the debt decreased 67.4% under Democrat administrations due to high tax revenues used to pay down the debt and moderate defense spending
    • 1945-2008, with the exception of Eisenhower, the debt increased 46.5% under Republican administrations due to reduced revenues from tax cuts and increased defense spending
  • 17. Lets Look At Where Our Money Is Going Today
    • 2009 Budget
  • 18. Then Lets Look At What Money Is Coming In
    • 2009 Revenue
  • 19. We All Knew The Govt Had Over Spent ….But So Did We
    • $3.518 Trillion needed for the budget
    • $2.105 Trillion in revenues
    • We have a $1.413 Trillion budget shortfall
    • $405 billion annually interest on debt
    • And our personal savings as a nation was -3.2% of our earned wages
    • Our credit card debt is $15,788 per household or $2.42 Trillion for our nation
  • 20. $2.5 Billion Additional Debt Since 2008
    • $375 Billion for TARP bailout
    • $787 Billion for Stimulus
    • $405 Billion for interest on the $10.6 Trillion 2008 debt left by Bush Admin
    • $595 Billion additional military spending
    • $350 Billion Social Security and Medicare adjustments
  • 21. This Is Not A Game That We Can Afford To Lose…..
    • There are 308,907,010 of us
    • We each owe $43,112.87 of the $14 trillion debt …. We allowed this to happen
    • Reducing our federal spending by a third won’t clear the debt until 2035
    • We have to get fiscally responsible or we will perish as a nation
    • We need to stop the “Liberal & Conservative” games and work as a team
    • We need a three party Political System
  • 22. For Starters….Lets Cut Military Spending
    • Military Spending is now taking 43 % of our annual tax revenue and has been since 2001
    • U.S. Currently spending $965 Bbl annually on military (Budget only shows $762Bl)
    • U.S. spends more annually on military than 7 other top nations combined
    • Military complex spending is the core of the U.S. economy and employment (1.6 MM)
    • Eisenhower warned us about having a large military complex
  • 23. Current Military Budget $965 Billion
    • • Military Personnel $129 billion • Operation & Maint. $241 billion • Procurement $143 billion • Research & Dev. $79 billion • Construction $15 billion • Family Housing $3 billion • DOD misc. $4 billion • Retired Pay $70 billion • DOE nuclear weapons $17 billion • NASA (50%) $9 billion • International Security $9 billion • Homeland Secur. (military) $35 billion • State Dept. (partial) $6 billion • Military (Non-DOD) $5 billion • “Global War on Terror” $200 billion
  • 24. Global Distribution Military
    • Global Military Spending….
  • 25. Annual Entitlements
    • 7% or $155 Billion for Federal Pensions
    • 14% or $484 Billion - Safety Net Programs
    • 20% or $708 Billion for Social Security
    • 21% or $468 Billion Medicare & Health
    • 13% or $60 Billion of Medicare funds are lost due to fraud
  • 26. Restructure Entitlements
    • Limit federal pension annual pay outs to 50% of salary
    • Pay back all monies borrowed from SS fund and stop using it as a slush fund
    • Increase oversight on all federal health programs to prevent fraud
    • Revamp Farm Subsidies; paid record $25 billion paid in 2005; 50% more than it paid for welfare
    • Turn the control of welfare and assistance programs over to the states for closer monitoring
  • 27. Cost For Illegal Immigrants
    • There are 15 million illegal immigrants
    • We are spending $21 Billion annually for their health care in the ER’s
    • They are illegally taking needed labor jobs
    • They do not pay billions in federal or state taxes
    • All illegal immigrants should be issued interim I.D. cards; deported if they don’t sign up for a card
  • 28. Recessions and Who Has Been In Power
    • There have been 47 recessions since 1790
    • Since 1923, there have been 14 recessions, including the Great Depression that lasted 11 years
    • The Republicans were in power during the onset of 11 recessions and the Democrats were in power during the onset of 3
  • 29. Effects Of Recessions on GDP
    • GDP Changes 1923 - 2008
  • 30. Lets Look At The Recessions We’ve Had Since 1974….
    • Unemployment went from 7.2 % to 9% under Ford in 1974 to 1975
    • Unemployment stayed at 7.5% for the entire Carter term
    • 1 st 3 years (1981-1983) under Reagan unemployment went from 7.1% to 10.8% and did not go below 6% until 1987 (6 yrs)
    • Unemployment never went below 5.4% under H.W. Bush
    • And never returned to the 3.8% unemployment rate of the 60’s.
  • 31. We’ve Been Here Before… Don’t Let Others Scare You
  • 32. 27.3% Jobs Lost During The Depression – 6.0% Lost Now
  • 33. Issues That Led To Our Great Recession
    • We let it happen!
    • Congressional oversight reduced by 80% 2001 – 2008
    • Excessive Deregulation – letting the foxes manage the hen house 2001-2008
    • Over outsourcing of labor jobs
    • Nation on a binge purchasing low cost foreign goods
    • High personal debt – No savings
    • Wall Street & Banking Investments Fraud and Jefferson did warn us about entrusting the welfare of our nation to the banks…we didn’t listen and still haven’t
    • Financial meltdown from subprime real estate fraud
  • 34. What Made This The Worst Recession!
    • During last 10 Yrs, job growth decreased from 22% annually in 1999 to 1.1% in 2009
    • 21 Major corporations filed bankruptcy 2001-2008
    • $22.3 Trillion in household, real estate and investment wealth wiped out in the 2008 Financial Meltdown
    • 15 million lost their jobs 2007 to 2009
    • 7-9 million jobs lost due to foreign outsourcing 2001-2010
    • The annual interest on the national debt is $405 Billion
    • Large Corporations relying on political changes and decisions on tax cuts before investing $ in job growth
  • 35. As Usual….The Wealthy Are Still Well Off And The Jobless Aren’t
    • The financial meltdown in 2008 was far greater than that of 1929 Wall St failure
    • Bush’s $350 billion TARP only bailed out the investor bankers that caused our failure
    • Most economists agree the government $787 billion stimulus aid by Obama did ward off a complete failure of our financial system
    • And most top economists agree the job recovery will take 5 to 7 years no matter who is in power due the shear numbers of unemployed and outsourced jobs that may have vanished forever
  • 36. Lets Try To Understand How The GOP Is Going To Fix This….
    • GOP controlled congress 1994-2006
    • GOP had the White House 2001-2008
    • And during this period…..
    • GOP started a war in Iraq that cost $742B
    • GOP allowed 7-9 million jobs to be outsourced overseas
    • GOP increased military spending by 31% for 8 years
  • 37. More On Understanding The GOP
    • GOP silently allowed annual health costs to soar by 18 to 28% annually w/ 35 MM uninsured
    • GOP was silent and allowed gas prices to increase by 250% 2006-08
    • GOP rewarded the Investment Bankers that caused the financial failure with $350 billion TARP bailout
    • GOP doesn’t seemed concerned about the debt when they increase it nor the $405 billion to maintain it
  • 38. More On Understanding The GOP
    • GOP opted to focus military solution in Iraq; not in Afghanistan from whence the 9/11 attack on the WTC originated.
    • GOP left New Orleans to dig their own way out of Katrina
    • GOP spent us into $6.9 Trillion additional national debt from 2001 to 2008
    • And now the GOP says if you elect them back they can fix us
  • 39. We Were Blessed To Have Dodged The Bullet…….
    • Those that were in power still haven’t apologized
    • Economists agree that creating a $787 billion stimulus bill did put the brakes on the train before going over the cliff after 2008 financial meltdown
    • The Stimulus Bill kept the unemployment rate from going below 6%; it did go to 27% during the Great Depression
    • Creating a Healthcare Plan for the 35 million Americans without insurance is going to rein in the insurance companies and reduce costs
    • Passing a Bank Reform Bill is a start to changing the way banks that are too big and investment companies do business
  • 40. The Republicans Says If You Give Them Back The Power This Fall
    • They’ll……
    • Create jobs and put people back to work
    • Cut federal spending
    • Restructure our healthcare
    • Finish up the Afghan war
    • Who’s going to do this….the Roves, the Cheneys, the Palins, the Becks or the Limbaughs…… and why didn’t they do it between 2001-08
  • 41. If The GOP Wins; The Real Winners Will Be…….
    • Major U.S. corporations will return to business as soon as the GOP gets it
    • The wealthy will be guaranteed tax cuts to protect their wealth
    • The military complex will continue to grow
    • Major health insurance companies and pharmaceutical companies will continue to prosper
    • And healthcare will be back at zero
  • 42. Liberal vs Conservative
    • Upon reviewing the Republican spending spree over the last 30 years, one cannot help to wonder how or when the Republicans will start caring for the main street American as much they care for the wealthy, power hungry, and big businesses and they say they are conservative
    • And the Democrats …. they too are guilty of spending too much money on programs that benefit the have nots and hopeless; but where will they draw a line? If we do not help that part of us that cannot help themselves, who will?
  • 43. Reflect and Decide On..
    • Which party looks out for your welfare as an individual
    • Which party has an allegiance to their so called conservative philosophy more than they do to the nation
    • Which party contributed more to the problem that got us to where we are today
    • And which party’s has the best track record for paying down the national debt.

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