Stop the Trains!
This is from Sharon Calvert of the Tampa Tea Party. She and Tampa-912 leader Karen Jarosh were instrumental in the grassroots uprising that killed light rail in the Tampa area. Now Senator Jack Latvala is trying to end run the voter’s decision. Please click on the link and send a message to Tallahassee.
18 HOUR ALERT
LESS than 18 HOURS before critical BUDGET HEARING
Tallahassee INSIDERS are working to nullify the 2010 vote of Hillsborough County residents against Light Rail! As you read this, imagine the smoke-filled, back rooms of government from years ago, playing out again tonight in Tallahassee!
Senator Jack Latvala is working the back rooms of Tallahassee (before Tuesday’s all important BUDGET COMM. Vote), having inserted language into a BIG TRANSPORTATION bill to FORCE a merger between Pinellas (his) and Hillsborough County Transit Agencies. His aim is to FORCE these local communites, TWO SOVEREIGN COUNTIES, to pay a third Agency TAX PAYER MONIES . This agency TBARTA, has plans to re-introduce LIGHT RAIL despite the 2010 vote by HILLSBOROUGH residents against LIGHT RAIL by 60+%.
The TBARTA plan has not been vetted, it has not been put through a COST BENEFIT ANALYSIS!
It is an attempt for BIG GOVERNMENT INSIDERS to nullify the election results of 2010! But the PEOPLE have already spoken! Senator Latvala is trying to overturn the ELECTION with a back-door deal!
DON’T LET THEM GET AWAY WITH IT! You have less than 24hrs to let them HEAR YOU
In the last year (since the people voted down Rail in 2010), the Hillsborough Area Regional Transit (HART) authority has given up its rail aspirations and has made steps to streamline costs and pare down inefficient routes to provide transportation to the transit-dependent. To survive in an era of dwindling property tax revenues, they have enacted reforms such as freezing wages, requiring employees make a contribution towards their health insurance premiums, and laying off redundant administrative staff. They have plans to raise fares so riders pay more of the costs that taxpayers are currently shouldering.
Contrast this with Pinellas’ transit agency PSTA. PSTA’s answer to shrinking tax revenues was to raise their property tax rate to a rate 50% higher than HART’s! They did not attempt to slash spending and live within their means. In January, PSTA also announced plans to build a lavish $1.7 billion light rail system that would require an ADDITIONAL $100+ million a year of taxpayer dollars to operate.
In order for PSTA to qualify for federal funds (more DEFICIT spending we cannot afford), they need to show phenomenal ridership numbers. This is a problem since demographers anticipate that Pinellas county’s trend of decreasing population will continue for the next 20 years! Therefore PSTA needs Hillsborough County’s robust 30% growth rate in their corner.
So, Senator Latvala and his partners in the efforts to OVERTURN the ELECTIONS of 2010 want to MERGE the two seperate County Agencies to beef up ridership numbers.
BUT….
…They have a problem however, because the HART board has rejected this idea with three resolutions. PSTA and HART already collaborate with seamless bus service across all three bay bridges and already realize quantity discounts on joint fuel and vehicle purchases.
SB 1866 pushed by Senator LATVALA requires HART and PSTA must meet to formulate the merger and bring the plan to the SENATE by February 2013!! Additionally, it requires HART to meet TBARTA goals within 7 years…including LIGHT RAIL…YES…the same LIGHT RAIL that HILLSBOROUGH residents already REJECT!
Senator Latvala is trying to OVERTURN the WILL of the PEOPLE! STOP Senate Bill 1866!!
PLEASE help the residents of CENTRAL FLORIDA stop SENATE BILL 1866….the next stop on this RAILROADING of the VOTER could by YOUR COMMUNITY!
Protect LOCAL CONTROL PROTECT your VOTE STOP SB1866!
Click the link below to log in and send your message:
http://www.votervoice.net/link/target/libertytree/rcR4bPqr.aspx
Freedom Rally shows we have to do a better job of educating!
Several Palm Beach County Tea Party members, along with other like-minded folks, stood on the intersection of Parker Ave and Okeechobee Blvd during rush hour on Wednesday, rallying in support of the First Amendment and Religious Freedom. It was a difficult corner – since the road was very wide in all directions and the vehicles were moving at fairly high speed. As one person put it “we have 20 mph signs in a 50 mph zone’.
The ralliers were enthusiastic and we’ve got some pictures, below. Thanks to all who took the time to come out for our Freedoms! What was clear, however, was that when people were able to read the signs – most didn’t have a clue about the latest incursions on our First Amendment Rights, or anything about the Obamacare regulations related to ‘free’ contraception or it’s impact on Freedom of Religion. Those of us experienced at sign waving from past rallies and demonstrations, could tell by the blank stares of drivers/passengers, and the minimal responses (eg horn-honking, thumbs-up or other less pleasant finger signs) that our topic did not strike any kind of chord with our intended audience.
Our rights are being taken away little by little with barely a whimper. ACT! NOW!
A few pictures of the event:
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Change in Direction Needed by Mark Wohlschlegel
I am by nature an optimist—I have all my life looked at the glass and concluded that it was half full not half empty. I am an engineer and technologist by profession—so I question things and therefore classify myself as a realist as well. Through some research that I have recently done and through my good friend Tom Boyton, who is owner and President of WJTW radio Jupiter, Florida who I thank for many of the statistics that follow, I would like to make a case for the fact that our current direction in our country is wrong, and that we must make some significant re-direction of priorities and fix what is clearly broken. Solving problems requires first understanding the problem. What concerns me most is that our leaders and elected representative don’t seem to get it and we the people, simply are not elevating our voices to put sufficient pressure on these elected officials to change course. Therefore, I feel that we all have a personal obligation to educate and present facts to as many people as we can to engage them in this debate and generate interest and involvement. This is our country—and there are no guarantees for continued prosperity. We can through action and inaction, destroy what our forefathers have handed to us.
I also love history and know that great nations and nation states that once found themselves “on top of the world” and enjoyed great prosperity through conscious decision destroyed wealth and their positions in the world. I am a believer in the fact that basic beliefs lead to decisions, and decision then lead to consequences. If one’s basic beliefs are not sound, then bad decisions follow and in turn bad consequences and outcomes will result. I grew up under the guidance that solid values and hard work will result in prosperity. I was blessed to have been born in the USA—and to have lived under a government for the most part that adhered to basic principals set forth by our founders. Our leaders practiced what our founders had framed for us. Unfortunately, we have significantly drifted from these principals, and unless we can change our current course, we are destined to some pretty bad outcomes. I believe we have already strayed from what has made our country great, and the outcomes are pretty apparent by the stats I present below. So I ask the question, do you think we are headed in the right direction as a country? If the answer to this is no—then get involved—make your voices heard. It is only through the voices of the people that things will be set back on course.
1. Today, a staggering 48 percent of all Americans are either considered to be “low income” or are living in poverty
2. Approximately 57 percent of all children in the US are living in homes that are either considered to be “low income” or impoverished.
3. If the number of Americans that “wanted jobs” was the same today as it was back in 2007, the “official” unemployment rate put out by the US government would be up to 11 percent or higher.
4. The average amount of time that a worker stays unemployed in the US is now over 40 weeks.
5. A recent survey found that 77 percent of all US small businesses do not plan to hire any more workers and we all know that the engine that drives employment in the US is not large corporations it is small businesses.
6. There are fewer payroll jobs in the US today than there were back in 2000 even though we have added 30 million extra people to the population since then.
7. Since December 2007, median household income in the US has declined by a total of 6.8% accounting for inflation.
8. According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006. Today, that number has shrunk to 14.5 million
9. A recent Gallup poll found that approximately one out of every five Americans that do have a job consider themselves to be underemployed
10. According to author Paul Osterman, about 20 percent of all US adults are currently working jobs that pay poverty-level wages.
11. Back in 1980, less than 30 percent of all jobs in the US were low income jobs. Today, more than 40 percent of all jobs in the US are low income jobs.
12. Back in 1969, 95 percent of all men between the ages of 25 and 54 had a job. In July of this year, only 81.2% of men in that age group had a job.
13. One recent survey found that one out of every three Americans would not be able to make a mortgage or rent payment next month if they suddenly lost their current job.
14. The Federal Reserve recently announced that the total net worth of US households declined by 4.1 percent in the 3rd quarter of 2011 alone.
15. According to a recent study conducted by the BlackRock Investment institute, the ratio of household debt to personal income in the US is now 154 percent.
16. As the economy has slowed down, so has the number of marriages. According to a Pew Research Center analysis, only 51 percent of all Americans that are at least 18 years old are currently married. Back in 1960, 72 percent of all US adults were married.
17. The US Postal service has lost more than 5 billion dollars over the past year
18. In Stockton, CA home prices have declined 64 percent from where they were in 2005-2006
19. Nevada has had the highest foreclosure rate in the nation for 59 months in a row
20. The median price of a home in Detroit is now $6,000
21. According to the US Census Bureau, 18 percent of all homes in the state of Florida are sitting vacant. That figure is 63 percent larger than it was 10 years ago.
22. New home construction in the US is on pace to set a brand new all-time record low in 2011
23. 19 percent of all American men between the ages of 25 and 34 are now living with their parents.
24. Electricity bills in the US have risen faster than the overall rate of inflation for five years in a row.
25. According to the Bureau of Economic Analysis, health care costs accounted for just 9.5 percent of all personal consumption back in 1980. Today, they account for approximately 16.3 percent.
26. A recent study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
27. One out of every seven Americans has at least 10 credit cards.
28. The US spends about 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the US.
29. Projections for the US trade deficit for 2011 will be $558.2 billion.
30. The retirement crisis in the US just continues to get worse. According to the Employee Benefit Research Institute, 46 percent of all Americans have less than $10,000 saved for retirement, and 29 percent of all American workers have less than $1,000 saved for retirement.
31. Today, one out of every six elderly Americans lives below federal poverty line.
32. According to an analysis by the Census Bureau data done by the Pew Research Center, the median net worth for households led by someone 65 years of age or older is 47 times greater than the median net worth for households led by someone under the age of 55.
33. 37 percent of all US households that are led by someone under the age of 35 have a net worth of zero or less than zero.
34. A higher percentage of Americans is living in extreme poverty (6.7 percent) than has ever been measured before.
35. Child homelessness in the US is now 33 percent higher than it was back in 2007
36. . Sadly, child poverty is absolutely exploding all over America. According to the National Center for Children in Poverty, 36.4 percent of all children that live in Philadelphia are living in poverty. 40.1 percent of all children that live in Atlanta are living in poverty. 52.6% of all children that live in Cleveland are living in poverty. 53.6 percent of all children that live in Detroit are living in poverty.
37. Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
38. . In 1980, government transfer payments accounted for just 11.7 percent of all income. Today, government transfer programs account for more than 18 percent of all income.
39. A staggering 48.5%of all Americans live in a household that receives some form of government benefits. Back in 1983, that number was below 30 percent.
40. Right now, spending by the federal government accounts for about 24 percent of GDP. Back in 2001, it accounted for just 18 percent.
41. For fiscal year 2011, the US federal government had a budget deficit of nearly 1.3 trillion dollars; that was the third year in a row that our budget deficit has topped a trillion dollars. Translated, we are spending over a trillion dollars more than we are taking in.
42. . If Bill Gates one of the wealthiest people in the world gave every single penny of his fortune to the US government, it would only cover the US budget deficit for about 15 days.
43. The US government has now accumulated a total debt of 15 trillion dollars. When Barack Obama first took office the national debt was 10.6 trillion dollars.
44. . If the federal government began right at this moment to repay the US national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.
45. . The US national debt has been increasing by an average of more than 4 billion dollars per day since the beginning of the Obama administration.
46. During the Obama administration, the US government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.
A trend that must be broken—
An article that appeared in the Bangor Daily News stated that in the state of Maine, “445,074 Mainers paid state income tax while 453,194 received some sort of state aid. In Maine, Medicaid, welfare, food stamps and subsidies for education have a combined enrollment of 660,000.”
Nationally, only 53% of all Americans living in households pay income taxes. Translated—47% or nearly half of all Americans don’t pay any federal income taxes.
We are continuing to depend on fewer and fewer wealth producers to pay for those who are on the take. This is re-distribution—this is socialism—which has proven to fail over and over again. This trend must be reversed—socialism works always for a while—until you run out of other people’s money!
We now have 92 million people on public assistance in one form or another. This includes 33 million children or 45% of all the people under the age of 18. Medicaid is the largest of all government programs and covers 74 million people—translated—one in four Americans. Food stamps now cover 34 million Americans or one in nine people! Almost 20 million people live on cash welfare and 11 million people live in public housing. Our federal policies do in fact incentivize people to depend on federal government programs and discourage job creation. Allowed to continue, this truly is a formula for disaster.
Understand our direction, and understand it is unsustainable. Have the guts to get involved and make your voices heard. Engage people, friends, acquaintances, young people, we are entering one of the most significant political elections in the history of our country. If we do not change the direction that our country is headed, it will be destroyed.
Why Do You Continue to Lie to the People Mr. President?
There is in Washington an ideological riff between the socialist/progressive party and the conservative party. The socialist/progressive party with their titular head, Mr. Obama believe that we have a tax problem—that is we must tax the rich to solve our debt problem. The conservatives clearly understand that we have only one problem in Washington—a spending problem.
I have collected some “facts” on what is happening with taxes in spite of Obama’s continual reminder that we must tax the rich folks not the middle class. My question is once again, he is either stupid or he is lying and I don’t believe he is stupid. He claims to be targeting the rich but in the example below, I certainly would not call this family “rich”.
If the President and Congress do not proactively work to keep the Bush tax breaks, we are going to have a significant tax jump for a very large part of our population come 2013.
The fact is, if nothing is done in terms of putting into place long term “permanent” set of tax laws, many average American families will get whacked. See the article by Bob Jennings on Fox Business: Why Your Tax Bill Might Surge Next Year
With our economy in such poor shape, why would anyone in their right minds want to put this additional burden on the American people? The above represents one of the biggest tax increases on our citizens in the history of our country.
Once again, millions of small business owners had better enjoy the next 16 months, because come January 2013, they are going to get whacked with a giant tax bill.
Oh, I forgot one other tax not mentioned above. See: The 2013 Tax Cliff in the Wall Street Journal.
Ladies and gentlemen, get out and vote these people out in November of 2012!
Action Alert – Congressional “Super Committee”
We need everyone to contact the Super Committee with your demands. Their contact information is below but first, here is a little background information that you may or may not know.
The “Super Committee” was formed as a condition to the “Debt Ceiling” debate, this past late-summer’s effort to increase federal spending authority for the president without really saying so.
We believe it is an unconstitutional construct, but it is there and we have to deal with it.
This Super Committee, comprised of twelve Congressmen (six from each party; half from the House and half from the Senate) was tasked to reduce the deficit. If the Super Committee does not come to bi-partisan terms, and Congress fails to pass the recommendations they propose, automatic “cuts” kick in.
Democrats are looking to pass $1.3 trillion in tax increases, with a similar amount in cuts, over the next 10 years. As usual, especially with the likes of Sen. John Kerry and Sen. Patty Murray sitting on this Super Committee, the Democrats are pushing for more spending on top of the tax increases. The same game plan they have been preaching for the last 3 years.
For a good analysis on the Super Committee, see this from The Heritage Foundation:
http://heritageaction.com/2011/10/note-to-super-committee-don%e2%80%99t-raise-taxes/
It appears that those involved are NOT attempting to look for real cuts. And any cuts to Medicare/Medicaid will be overturned as soon as the next Congress convenes.
Republicans offer to cut deficits by about $2.2 trillion over a decade; about one-third of that coming from increases in items such as Medicare premiums, the sale of public lands and airport fees — measures that increase government revenue without raising taxes. The GOP plan also assumes that tax reform would generate economic growth that would also lift revenues.
The GOP plan would also cut about $500 billion from Medicare over the next decade and $185 billion from Medicaid, officials said.
Democrats say that elsewhere in the budget they plan to reduce deficits by more than $3 trillion over the coming decade, while financing a $450 billion jobs bill along the lines that President Barack Obama is recommending. The same worthless “jobs bill” that was defeated in the Senate.
If the Democrats were serious, they would cut Obamacare, which could save over $2 trillion during same time ten-year period. See this link for the detail:
http://www.kiowacountysignal.com/opinions/x703875050/Repeal-of-Obamacare-could-save-2-6-trillion
Tea Party Patriots has railed over the last 2 ½ years – Reduce the size of government; Slash spending and Repeal Obamacare – for trillions in savings!
Credit rating agencies, yet again, have stated emphatically that nothing less than $4 to $5 trillion in spending cuts will stem another downgrade in the U.S. credit rating… but, apparently, members of the Super Committee believe their half-baked ideas (that they know will be rejected) will lead to some sort of consensus (and maybe political gain) in 2012?
Write to the Super Committee – but don’t just stop there; e-mail, phone, fax, and tweet!
Here is a direct link to their website:
http://www.deficitreduction.gov/public/index.cfm/contact
Whatever you can do – create a presence, from the Palm Beach County Tea Party as well as for the Tea Party Patriots groups all across the country!
The lobbyists are all there, waiting to add more dollars to Super Committee members’ campaign coffers! We have millions of members, enthusiastic Patriots who stand for their Country, NOT Party! Put pressure on them for: NO increase in ANY taxes, and CUT spending, PERIOD!
Here are your “Super Committee” members:
Rep. Jeb Hensarling (R-TX) Committee Co-Chair: @RepHensarling
Phone: 202-225-3484 Fax: 202-226-4888
Sen. Patty Murray (D-WA) Committee Co-Chair: @PattyMurray
Phone: 202-224-2621 Fax: 202-224-0238 Toll Free: 866-481-9186
Rep. Chris Van Hollen (D-MD): @ChrisVanHollen
Phone: 202-225-5341 Fax: 202-225-0375
Sen. Jon Kyl (R-AZ): @SenJonKyl
Phone: 202-224-4521 Fax: 202-224-2207
Sen. John Kerry (D-MA): @JohnKerry
Phone: 202-224-2742
Sen. Pat Toomey (R-PA): @SenToomey
Phone: 202-224-4254 Fax: 202-228-0284
Sen. Max Baucus (D-MT): No Known Twitter Account
Phone: 202-224-2651 Fax: 202-224-9412
Sen. Rob Portman (R-OH): @robportman
Phone: 202-224-3353
Rep. Xavier Becerra (D-CA): @RepBecerra
Phone: 202-225-6235
Rep. Dave Camp (R-MI): No Known Twitter Account
Phone: 202-225-3561 Fax: 202-225-9679
Rep. James Clyburn (D-SC): @Clyburn
Phone: 202-225-3315 Fax: 202-225-2313
Rep. Fred Upton (R-MI): @RepFredUpton
Phone: 202-225-3761 Fax: 202-225-4986
Tweeting to the Super Committee, should have a # setup… something like this:
@RepHensarling #SuperCommittee – NO tax inc., CUT spending #tpp
@RepHensarling #SuperCommittee – Repeal Obamacare, Save $2T #tpp
The Federal Government is Out of Control
Our founding fathers warned us about the natural progression of the federal government—and they drafted a brilliant document called the US Constitution to try to preclude this from happening. However, the majority of our elected officials today either don’t understand or appreciate what is in this document—the attached video is worth watching—all this is going on under “YOUR” watch—and there is only one way in this country that you can change this—it will happen in November of 2012—don’t miss it—each and everyone of you can make a “CHANGE”. If it is not changed in Nov 2012—it is not “their” fault—it IS YOURS!
A short video you really should see
Government jobs – This is truly shocking
Just a short video you really should and must see…..a real eye opener!
If you seldom watch a forwarded video, I urge you to watch this one.
I did not realize that the numbers were this large and was very shocked.
It’s rather short so does not take long to view it….
If this doesn’t open your eyes nothing will.
County Sets Tax Rate for 2012
County Tax Rate Comes Closer to TAB Target
Last evening at about 11:00pm, the County Commission voted to set the county-wide tax rate at $4.79 per $1K valuation, up 0.8% from last year. While still technically an increase, it is much better than the number set in the July meeting and an indication that all the work of the last few months has had an effect.
Thank you to those who attended or wrote letters and emails, but a very special thanks to those who stood up at the meeting and spoke their mind. Of the 80 people speaking at the meeting, 75% were there to protect “their” county funded programs, but 25% were on our side, a rising tide.
From South Florida 912, speakers included Marianne Polulack, Iris and Fred Scheibl, Rita and Jim Boger, Victoria Theil, Albert Key, Alison Rampersad, Nancy Hogan, Mike Lameyer, Shannon and Doug Armstrong, and Jason Shields.
Palm Beach County Tea Party was represented by Anita Carbone.
For a synopsis of the meeting and what the tax decision means, see: A Surrealistic Budget Hearing on the TAB website.
Obama Administration Energy Obstructionism
I have in the past written a number of articles on the current administrations “anti-energy” policy. Regardless of what this administration says, it is imperative to watch what they do because their actions are generally diametrically opposite to what they say!
Consider the recent discovery by ExxonMobil of the Julia oil field in the Gulf of Mexico. The field is believed to hold more than 700 million barrels of oil and gas equivalent. Exploiting the newly discovered field would yield billions of dollars for both ExxonMobil and royalties paid to the US government, not to mention the creation of thousands of jobs. In fact, a 1 billion barrel field could generate around $10.95 billion in government royalties—Mr. Obama—that is revenues—like taxes! Mr. Obama—this is called becoming “energy independent” and less dependent on the 60% of our oil that we now import from hostile people that want to do ill will to the United States. Get it!
Obama’s Interior Department is fighting this development. The Interior Department regulates offshore drilling and they are claiming that Exxon’s leases have expired and the company hasn’t’ met the requirements for an extension. In this industry, the re-instatement of leases has been in the past almost a rubber stamp, but for whatever reason, this is not the case for the Julia field. This discovery is one of the largest ever.
There is currently a court battle in place and the government is denying the oil company’s lease on the field, despite it being the biggest oil find ever! Furthermore, the signal to the industry that the Interior Department’s current position is extremely damaging for oil producers—typical Obama administration behavior—that is create as much uncertainty for industry so they do nothing—don’t invest, don’t create jobs—it is the same signal that they continue to send industry either through this kind of governmental restrictions or EPA rulings or nationalized healthcare. Same old same old.
Please find one of the best articles that I have recently read that appeared in today’s Wall Street Journal opinion page. The fallacy of “green energy” producing jobs has been proven over and over—it doesn’t—in fact, it costs jobs as these projects do not require nearly the labor to build as conventional sources plus the high cost of subsidy pulls money from the economy that private industry otherwise would invest in real wealth producing ventures that would in fact produce jobs. The cost of energy resulting from these green technologies also drive companies to move overseas for production due to higher electricity costs all of which diminish the number of US jobs!
Please read this article–it is very good!
By STEPHEN MOORE WSJ Opinion Section September 2, 2011
CLICK HERE for the article.
How Long Can We Ignore Our National Debt?
It continues to amaze me how grown men and women in Congress can continue down the path to disaster by taking no serious action on our debt issue. This has to go down as one of the most irresponsible and despicable behaviors of our President and Congress in our nation’s history. And where are the young folks who are going to have to bear this burden? They are nowhere to be seen.
A friend recently sent me an email to better characterize the recent “cuts” that Congress made. When you see the numbers it pretty much puts everything in perspective when looking at our spending problem—and THAT is the problem—yes, federal revenues are down due to an impotent growth strategy (s) that the current administration is promoting, but the real problem is spending. We all know this clearly.
Here are the numbers for this fiscal year:
US Tax Revenues: $2,170,000,000,000
Federal Budget: $3,820,000,000,000
New Debt: $1,650,000,000,000
National Debt: $14,272,000,000,000
Proposed Budget Cuts $38,500,000,000
Now just remove eight (8) zeros and pretend this is your family budget to get a real feel for how our gutless Congress and President acted a few months ago in “cutting” spending.
Annual Family Income: $21,700
Money the Family Spent: $38,200
New Debt on the Credit Card $16,500
Balance on the CC $142,710
Total Budget Cut $385
So you see, the budget cuts that were made are actually far less than the debt service even on the new debt on the credit card for the year—not to mention the debt service on the total outstanding balance. Would we get away with running our family budgets this way? Why should our elected officials get away with managing “our” money this way?
Let’s take a look at our total debt– $14,587 trillion (it is actually higher than reflected above in the numbers). This can be divided into public debt, that is, the Treasury securities held by individuals, financial institutions, and foreign governments AND the intra-government debt, the sum of Treasury bonds held by agencies of the federal government, principally the so-called Social Security Trust Fund. The liabilities represent the future pensions, health care, social security payments, etc that are promised under current legislation—both are REAL obligations.
The split between public debt and intra-governmental debt is $9.924 trillion and $4.666 trillion respectively. This is over 300 million times the country’s median household income! Stacked as dollar bills, it would reach 920,953 miles high, almost four times as far from Earth as the moon. The real issue here is the debt’s size relative to gross domestic product—what this is saying is no different than the way we individually measure our own debt. Translated, it is our personal debts measured against our income. The GDP of the US was $15 trillion at the end of the first quarter in 2011. This translates to making our public debt at 66.1% of GDP and the intra-governmental debt at 31.1%. Total debt is now 97.2% of GDP and growing!
The scary part is of course the size but the scarier part is the rate of growth. For example, our debt in 1946 was $269 billion and 14 years later in 1960 it was $286 billion. The economy during these years grew rapidly so that in 1960, the debt was only 58% of GDP.
In the 1970’s under Paul Volcker as Fed chief, the debt began its soaring. Why? Quite simple—Washington continued to increase spending faster than government revenues increased (Note: revenues increased a huge 99.4% in the 1980’s). The debt was 58% of GDP in 1990, a full 24 percentage points above its 1980 lows. It continued to increase dramatically in the early 1990’s under President Bill Clinton reaching 68% of GDP in 1994.
But, Newt and the republican Congress came into power, and represented the first time the Republicans controlled both houses of Congress since 1954. In the next six years, while revenues increased 61%, federal outlays increased ONLY 22%! As a result, the debt relative to GDP declined between 1994 and 2000 to 57% from 68%–and in 1998-2000 actually showed the first surpluses in the federal budget in over 30 years. I have written about this before—it was not due to Bill Clinton’s policies—it was due to the republican controlled house under Newt Gingrich-and their ability to cut spending—and move Clinton to the center. That is fact!
In 2001 following the collapse of the dot com bubble and rising unemployment, the 2003 debt to GDP ratio had risen to 61.7% Many did and continue to blame the Bush tax cuts for this however, that is simply wrong. As I have written many times in the past—when you cut rates, tax revenues actually increase because companies and individual entrepreneurs go out and invest, create jobs, and more jobs and healthier economies produce more wealth, which in turn generates more tax revenues. This is exactly what happened after the Bush tax cuts were put into place. Federal revenues before the Bush tax cuts were put into place declined 12% in the early part of the decade, but when the tax cuts were implemented in 2003, the economy began to grow strongly and federal revenues in the next four years grew by a staggering 44% while unemployment fell to 4.2% from 6.2%. Federal outlays increased during these years by a meager 26.4% and debt-to GDP ratio increased to 64.8% by 2007, which was below what it had been in 1994 (read this Mr. Obama and Nancy P, and Harry R).
In 2008, the debt-to GDP ratio soared to 67.7%. A year later, under President Obama, it took another leap to 84.4%, a year later to 93.8% and it is headed real quickly to 100%.
No one expects to pay off our $14 trillion debt, but we do expect our government officials to get a handle on our debt issue and put into place a comprehensive spending cutting plan that will get our debt- to –GDP ratio back down to historic levels. Specifically, they must not only stop the rate of growth, they must reduce the rate of growth over the next ten years. I have represented in the past that we should have a debt plan to reduce our debt by $1 trillion/year for the next 10 years!
This can ONLY happen if the American electorate sends a solid message in November 2012 and do exactly what they did in November of 2010. This is our system—this is our way to effect “change”.
