Uploaded byTodd Jones
Our government is broke
This document outlines the dire fiscal situation facing the U.S. government, with out-of-control spending, a $16.7 trillion national debt, and $70 trillion in promised entitlements. It argues that unless bold action is taken to downsize government, return power to states, balance the budget by 2018, and start paying down debt, the U.S. could face a crisis like other nations throughout history. The document calls on citizens to get informed, engage with representatives, and support grassroots organizations working to address the issue.
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Our government is broke
- 1. Steve Hess • Degreein Business Administration • CPA – Arthur Andersen & Co. • 25 years in corporate finance - CFO • Silicon Valley startups
- 2. PRIVATE SECTOR FEDERAL RESERVEFEDERALGOVERNMENT
- 3. OUR GOVERNMENT ISBROKE • The problem • The cause • How it affects you • The fix • Take action
- 4. THE PROBLEM Taxes $2.5 trillion Spending $(3.8) trillion Deficit $ (1.3) trillion Out-of-control spending!!!
- 5. THE PROBLEM National debt$ 16.7 trillion Promised entitlements $ 70.3 trillion Total liabilities $ 87.0 trillion
- 6. THE PROBLEM (in $billions) 2013 2018 NATIONALDEBT 17,000$ 20,000$ INTERESTPAYMENTS 223$ 800$ INTERESTRATE 1.31% 4.00%
- 7. THE PROBLEM $(1,600,000) $(1,400,000) $(1,200,000) $(1,000,000) $(800,000) $(600,000) $(400,000) $(200,000) $- $200,000 $400,000 $Billions Surplus&(Deficits)1990 to2012 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 19651975 1985 1995 2005 2012 Historical US Debt - $ billions
- 8. THE CASE OFTHE MISSING MONEY “A PONZI SCHEME”…..Paul Krugman I.O.U. $2.7 TRILLION PAYABLE TO: THE SOCIAL SECURITY TRUST FUND
- 9. THE CAUSE Congress &The White House No courage
- 10. SINCE SENATOR OBAMAMADE THAT SPEECH IN MARCH 2006, THE FEDERAL DEBT HAS DOUBLED TO $16.7 TRILLION. “.... raising America’s debt limit is a sign of leadership failure. It is a sign that the US government can’t pay its own bills. Over the past five years, our federal debt has increased by $3.5 trillion to $8.6 trillion. That is ‘‘trillion’’ with a ‘‘T.’’ That is money that we have borrowed from China, Japan, and American taxpayers.”
- 11. THE CAUSE We simplycannot afford the government we now have in place 2001 2012 INCOME TAXES 1,991$ 2,469$ 24% ENTITLEMENTS 461 829 80% DEFENSE 385 878 128% EDUCATION 36 99 176% AGRICULTURE 68 151 122% STATE DEPT 19 56 190% ENERGY 16 41 149% LABOR 40 127 219% ALL OTHER DEPTS. 838 1,616 93% TOTAL 1,863 3,796 104% SURPLUS / (DEFICIT) 128$ (1,327)$
- 12. THE CAUSE • $170 million for Myanmar • $ 300 million for Syrian Rebels • $ 1.3 billion for Egypt • $ 32 billion / year in foreign aid • $ 10 million for Elephants and Rhinos • $ 3.7 trillion for war We simply cannot afford the government we now have in place
- 13. HOW IT AFFECTSYOU • Germany – WWI and WWII • France – 8 times (1500 - 1800) • Great Britain – WWII • U.S.S.R. -- 1991 • Greece – 2009 • Detroit - 2013 • Portugal – 2013 ? • United States – 2018 ??
- 14. HOW IT AFFECTSYOU • Your kids will pay the debt • Inflation • Savings may get hurt • Taxes will go up • Unemployment will get worse • Government assistance may go away • Social Security & Medicare in jeopardy
- 15. STATE OF THEECONOMY 1.2% GDP growth 8% Unemployment 47 Million on food stamps +
- 16. TRADE DEFICITS $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $Billions Red= ImportsfromChina / Blue = US exports toChinga Tradewith China 2005 to 2012 $- $500.0 $1,000.0 $1,500.0 $2,000.0 $2,500.0 $Billions Red = Imports/ Blue = US exports Trade with the World - 2005 to 2012
- 17. The “Our Governmentis Broke Index” HEALTHY Goal Today 4% GDP GROWTH 2% 5% UNEMPLOYMENT 8% 2% INFLATION 2% 0% DEFICIT to GDP 9% 75% DEBT to GDP 108%
- 18. THE GET WELLPLAN
- 19. US TREASURY SECURITY(IOU) AT ISSUANCE FACE AMOUNT $ 1,000 ANUUAL INTERST $ 40 INTEREST RATE 4 % TRADING IN OPEN MARKET $1,300 $ 40 3 %
- 20. THE FED GETWELL PLAN 2008 -- $ 1.4 trillion 2012 --- $ 2.6 trillion
- 21. GET WELL PLAN •Downsize US Government $3.8T $3.0T • Return power to the States • Unleash capitalism • Balanced budget by 2018 • Start paying down the debt
- 22. TAKE ACTION • Readthe book • Stay informed: ourgovernmentisbroke.com • Spread the word / share your knowledge • Meet with your representatives
- 23. SUMMARY • Current fiscalpolicy is a disaster • No easy solution – Bold moves are needed • Public engagement is vital • This is not about politics – It’s a moral issue • The Good News = Private Sector
- 24. PRIVATE SECTOR FEDERAL GOVERNMENTFEDERAL RESERVE
- 25. GRASS ROOTS ORGANIZATIONS •The Concord Coalition • American’s For Prosperity • The Heritage Foundation • The Come Back America Foundation • The Tea Party • The Cato Institute • YouCut America
- 26.
- 27. SICK CARE • 16%of GDP in U.S. • $ 1.8 trillion • 8% in other countries
- 28. OBAMACARE • 2,700 Pages •$ 500 Million for IRS agents • 20 New taxes • Disincentive to hire • Pushed back one year • Hated by all