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Our National Debt
Its Consequences
and
What We Can Do About It
As of June 3, 2013, the official debt of the United States government is
$16.7 trillion
($16,738,788,832,145)
So What?
This amounts to:
• • $53,009 for every person living in the U.S. • $138,241 for every household in the U.S. • 105% of the U.S. gross domestic product. • 565% of annual federal revenues.
Is the Debt Growing?
•
The National Debt increases an average of
$2.62 billion per day
since September 30, 2012!
(that’s $110 million per hour)
But, News Flash!!!
Our Government occasionally lies (or attempts to
shade the truth)
Tricky Accounting Publicly traded companies are legally required to account for "explicit" and "implicit" future obligations such as employee pensions and retirement benefits. The federal budget, which is the "federal government's primary financial planning and control tool,”
is
Not Bound
by this rule
Gross U.S. Debt
The gross debt has two components: 1) Debt held by the public -- money the government borrows on the open market from domestic or foreign investors; and 2) Intra-governmental debt -- money the government owes itself, as in the Social Security trust fund
The True National Debt •
So, in truth, the “real” and total national debt is considerably higher than what you see reported:
At the close of the federal government's 2012 fiscal year (September 30, 2012), the federal government had roughly: 1) $7.5 trillion ($7,517,000,000,000) in liabilities that are not accounted for in the national debt, such as federal employee retirement benefits, accounts payable, and environmental/disposal liabilities
And, 2) $21.6 trillion (
$21,622,000,000,000
) in obligations for current Social Security participants above and beyond projected revenues from their payroll and benefit taxes, certain transfers from the general fund of the U.S. Treasury, and assets of the Social Security trust fund.
And,
• 3) $27.0 trillion (
$27,000,000,000,000
) in obligations for current Medicare participants above and beyond projected revenues from their payroll taxes, benefit taxes, premium payments, and assets of the Medicare trust fund.
So, the
TRUTH
• Combining the figures above with the national debt and subtracting the value of federal assets, the federal government had about
$67.7 trillion
(
$67,726,000,000,000
) in debts, liabilities, and unfinanced obligations for current Social Security and Medicare participants at the close of its 2012 fiscal year
Thus,……….
This shortfall equates to: •
$215,311
for every person living •
$559,331
for every household •
428%
product. of the U.S. gross domestic • •
2,513%
of annual federal revenues .
Table from the Previous Graph •
Portion of Total Federal Spending Category
• • • • •
1960 1970 1980 1990 2000 2010
Social Spending 23% 35% 47% 45% 56% 61% Defense Debt Service 56% 44% 28% 27% 20% 22% 14% 12% 16% 21% 18% 11% Economic Affairs 7% 9% 8% 5% 6% 4% Public Safety 0% 0% 1% 1% 1% 2%
Tax Distribution
What You Really Pay in Taxes
• • • • • • • • Personal Income Tax State and Local Income Tax Sales Tax FICA Corp. Income Tax Share Property Tax Fuel Taxes Other • TOTAL: 18.2% 10.6% 10.3% 7.65% 3.00% 2.7% .6% 7.00%
60.05%
Politics
• The U.S. Constitution vests Congress with the powers to tax, spend, and pay the debts of the federal government. Legislation to carry out these functions must either be:
• 1) passed by majorities in both houses of Congress and approved by the President; or • 2) passed by majorities in both houses of Congress, vetoed by the President, and then passed by two-thirds of both houses of Congress; or • 3) passed by majorities in both houses of Congress and left unaddressed by the President for ten days.
Debt owed to non-federal entities
Ownership of U.S. government debt by foreign creditors:
Table of Previous Graph: • • • • • • • • • •
Country Amount (billions)
China $1,154.7
Japan $885.9
United Kingdom $278.4
Oil Exporters $215.5
Brazil $197.6
Caribbean Banking $166.5
Taiwan $157.2
Russia $139.3
Hong Kong $128.1
Who?
• Oil exporters include Ecuador, Venezuela, Indonesia, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Algeria, Gabon, Libya, and Nigeria • Caribbean Banking Centers include the Bahamas, Bermuda, Cayman Islands, Netherlands Antilles, Panama, and British Virgin Islands
Debt Owed to Federal Entities:
Table from Graph: • • • • • • • • •
Amount (billions) Portion of Total
Social Security Civil Service $2,607 56% Retirement/Disability $767 17% Medicare $337 7% Military Retirement $333 7% DOD Retiree Healthcare $160 3% USPS Retiree HB Other $43 $372 1% 8%
Outlays
Big Cutting:
The Consequences:
• • • • •
More Debt Means Higher Interest Rates More Debt Means Fewer Jobs: More Debt Can Erode Your Life Savings: More Debt Makes Your Family Less Secure: More Debt Puts Your Health Care At Risk:
Our Task: (
or
, What Can We Do?) • • • • Cut Waste Cut Government Size (The government is doing things it should not be doing and spending far more than we can afford to pay or should be paying. It is time to start moving decisively toward a federal government that is limited and carries out its appropriate function) Get Rid of Duplicate and Unnecessary Programs Slash Entitlements
How Can We Do This?
• • • • • • We work and fight to elect conservative, fiscally responsible candidates We un-elect spendthrift idiots Repeal Obamacare Balance the Budget Revise the Tax Code (Simple and Fair) Reduce Government Size (to only perform what the Constitution authorizes)
‘Saving The Dream ‘
This plan is the most comprehensive and
well thought out
program for:
What it Proposes • • • • • • Elimination of the National Debt A Balanced Budget (10 years) A Fair Tax System Government Assistance only to the Needy Government Reduced to Constitutionally Authorized Powers More (revised Health Care Program)
What YOU and We can Do • Go to:
http://www.heritage.org
• Sign up for
“Morning Bell”
And, • Download, embrace and promote: