Friday, May 11, 2012

The Real Debt Crisis

It doesn’t look like we’re underwater yet. But in fact we are.  Big time.

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American Majority

Dear Friend,

At American Majority, we believe that being an actively engaged citizen is a lifestyle.  It’s not just something you do around election time, but it’s a part of every day of your life.  That’s why we’re sending you these Majority Points updates – to arm you with information that you can spread to friends, colleagues and family.  Our first job as pro-freedom activists is to spread the word about American values and the threats our great nation faces at the hands of pro-government progressives, and then give you meaningful ways to combat those threats.

In this edition of Majority Points, we are breaking down the REAL debt crisis in America.  When you hear about the so-called National Debt, commentators, candidates and pundits are often referring to the Federal Debt which today stands at more than $15 trillion or about on par with our GDP (and headed to $16 trillion at an alarming rate).  When we look at our debt ratio as a nation (which is the level of debt as compared to how much we generate as a country) it doesn’t look like we’re underwater yet. 

But in fact we are.  Big time.

Government at the federal, state and local level has gotten so big that we as Americans can no longer afford to think that what’s happening in Europe in countries like Greece, Spain, Italy and others, cannot happen here.  It can, and thanks to the crisis of government spending, we are well on our way. In fact, if we’re not careful, the “unseen” debt and obligations at the state and local level, with states like California and Illinois could ultimately undercut the foundations of our entire economy.

Now our aggregate national debt includes all the debt and unfunded liabilities of state and local governments as well.  Progressives love to omit those numbers from the picture to drive the ridiculous idea that we don’t have a debt crisis and the government should be allowed to grow unchecked.

So what is the REAL National Debt??  It’s so big and complex an issue that it’s hard to really know.  But here are the facts as best we can tell:

The Federal Government employs roughly 2 million civilians, with 85% of them living and working outside the Washington DC area.  The cost of those employees, government programs, infrastructure and personnel benefits help produce a Federal Debt of more than $15.5 trillion.

Now approximately 19 million (yes, 19 million) Americans work for state, county, school district and municipal governments across the country. These governments owe all these employees a total of more than $4.4 trillion in local pension and health care benefits that are PRESENTLY NOT FUNDED.   Those numbers may not include other bonds and borrowing at the state and local level.

So the grand total, being conservative, is approximately $20 trillion in government debt. Our GDP in 2011 was about $14.5 trillion, so purely on government spending alone we’re massively overspending. And keep in mind that President Obama has projected another $1 trillion or more short fall for 2012 on the federal side. 

This kind of reckless spending, bloated government and massive debt leads to higher taxation for EVERYONE.  Yes, despite what the progressives would like you to believe – EVERYONE will pay for this bill – not just the so-called wealthy.

We have 180 days to go until we can make some real change happen and do a 180 degree turn off the path of statism back towards one of freedom and prosperity.  Spread the word about these figures and the danger they pose to the future of American freedom.  Remember – 70% of the officials we send to Washington started out at the local and state level, and here they are, helping to create the vast majority of the government bureaucracy we cannot afford, but are forced to pay for everyday. 

Many of them have been part of the problem for too long.  That’s why American Majority is encouraging conservative, liberty-minded people everywhere to engage in local elections this year. Your communities are the real battleground against our national debt crisis. 

 To learn more about how you can engage visit www.AmericanMajority.org.

For Liberty,

Ned Ryun

Resource Spotlight

Why America is Great: Volume 7
Why America is Great: Volume 7The great challenge to the members of the Constitutional Convention was to design a national government both strong and ordered enough to maintain the welfare of a large continent, but also gentle enough that it would never encroach upon the liberties of the people.

AM Alumni Spotlight

Wautatosa
American Majority continues on its mission to identify and train conservatives across the country to run for office and to win.  Jim Moldenhauer took the practical knowledge he gained from American Majority training in November 2011, and applied it in his run for Alderman in District 1 of Wauwatosa, Wisconsin.
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