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The Congress App and Our Looming Federal Debt Crunch by Neal Dikeman, Libertarian Nominee for US Senate from Texas

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Overview of the Federal Debt and Deficit by Libertarian US Senate Nominee from Texas

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The Congress App and Our Looming Federal Debt Crunch by Neal Dikeman, Libertarian Nominee for US Senate from Texas

  1. 1. Our Looming Debt Crisis and the Congress App Thank you to the Private Enterprise Research Center, Texas A&M University and Congressional Budget Office for data and charts Cause and Effect
  2. 2. Time to Delete the Congress App
  3. 3. Newsflash • Our Total Federal Debt is now $341K for every American • That’s >6 years salary for the average American family and 2x their mortgage • It’s 12 years of all government revenues • And we’ve hidden half of it in Medicare and Social Security promises • The recent tax cut and spending bills mean $12 Trillion more in 10 years says Congress’ own accountants • That’s another $100K per family by the time my 5 year old gets to high school
  4. 4. Debt Bubble reaching un- sustainable levels CBO Where we were was manageable Where we are is unsustainable Where we will be is very scary
  5. 5. Back to WWII levels, except it’s not wartime. CBO Where we were was somewhat manageable Where we are is ultra high Wartime only levels Where we will be is OMG WTH Land, even if this were all the Debt
  6. 6. Not living within our means is getting worse, not better. No matter who was in control. Private Enterprise Research Center, Texas A&M University
  7. 7. Would you like a Side of Debt with That?
  8. 8. 2017 2028 Social Security 939$ 1,750$ Medicare 591$ 1,260$ Medicaid 375$ 655$ Other 614$ 860$ Defense Spending 610$ 769$ Non-Defense Spending 590$ 839$ Interest 263$ 915$ Total Spending 3,982$ 7,048$ Breakdown of Federal Spending and Income Every category growing rapidly, deficits more than doubling, and more deficit growth than GDP growth CBO 2017 2028 Payroll Taxes 1,162$ 1,780$ Other 270$ 368$ Corporate Income Taxes 297$ 448$ Income Taxes 1,587$ 2,924$ Total Income 3,316$ 5,520$
  9. 9. Why is this only an Issue Now? • We’re only able to finance our current debts with historically low interest rates and hiding it off balance sheet • We can’t handle the next $12 Trillion deficit from tax cuts/ spending increases • This isn’t all the debt, Medicare and Social Security are just as big as the Debt
  10. 10. Those Chickens are Coming Home to Roost Fast
  11. 11. 2017 May be Ugly But increases in the Next 10 Yrs will be Horrendous No silver bullet alone will fix it
  12. 12. And no Republicans, we can’t grow our way out when Federal Debt is outgrowing the entire GDP
  13. 13. We need that chart to look something like this: $(743) $(614) $(610) $(590) $(263) $(666) $743 $66 $(26) $(69) $(190) $1,444 $(1,000) $(500) $- $500 $1,000 $1,500 $2,000 ENTITLEMENT DEFICIT MANDATORY OTHER DEFENSE SPENDING NON-DEFENSE SPENDING INTEREST TOTAL DEFICIT FEDERAL ANNUAL $BILLIONS IN SPENDING 2017 NEW INCREASES IN 10 YRS
  14. 14. It’s Not Too Late, Yet . . . • Start living within our means • Within 1 Senator’s term • Shore up entitlement deficits • Across the board spending freeze • Find a mere 1% less each year in government spending • Even without new taxes • THEN let economic growth be our rising tide • Or kick the can again, and deal with the inflation, higher taxes, weaker dollar and lower social security and medicare benefits in 10 years
  15. 15. So why haven’t we? A. Our elected officials are lazy, incompetent, or worse? B. Nobody in Washington can do math? C. It’s the other party’s fault? D. Neither party has the political will or wants to be seen to compromise E. Kicking the can down the road to my preschool daughters is easier
  16. 16. But wait, there are more chickens
  17. 17. Ugh, nominal Federal Debt isn’t the only thing that Ballooned Private Enterprise Research Center, Texas A&M University Social Security and Medicare Liabilities Have Also Doubled to $20 Trillion So No Democrats, Single payer Healthcare isn’t the Fix Since we’ve not even paid for the last generation’s healthcare yet
  18. 18. $43 Trillion in Total Federal Liabilities 12x Total Revenues Private Enterprise Research Center, Texas A&M University
  19. 19. From 145% of GDP to 229% in 10 Years Private Enterprise Research Center, Texas A&M University This is before that next $12 Trillion we just signed up for
  20. 20. Best time to plant a tree? 20 years ago. 2nd best time? Today. 1st rule of holes, when in one, stop digging.

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