Comeback America: The Nation’s Fiscal Challenge and A Way Forward

1. Comeback America: The Nation’s Fiscal Challenge and A Way Forward Event Organization Location Date Hon. David M. Walker Founder and CEO The Comeback America Initiative and Former Comptroller General of the United States

2. Insert

3. U.S. Share of World GDP Source: World Bank, In Current U.S. Dollars

4. Three Key Management Principles Plan Budget Performance Metrics Compiled by TCAII.

5. The Federal Government’s Responsibilities We the Peopleof the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America. Compiled by TCAII.

6. The 10th Amendment Reserved Powers “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” ~ The U.S. Constitution Compiled by TCAII.

7. Quick Definitions & (Synonyms) • Establish • to institute (as a law) permanently by enactment or agreement (substantiate) • Insure • to make certain especially by taking necessary measures and precautions (assure) • Provide • to take precautionary measures (deliver) • Promote • To contribute to the growth or prosperity of (advance) • Secure • Free from risk or loss (confident) Compiled by TCAII.

8. Selected Key Founding Principles • Limited but effective Government • Individual liberty and opportunity • Personal responsibility and accountability • Rule of law and equal justice under the law • Fiscal responsibility and intergenerational equity • Stewardship Complied by TCAII

9. From Projected Surplus to Actual Deficit

10. Growth of Government 1912 2012 2040 US GDP: $15.5Trillion(Constant 2012 Dollars) US GDP: $866Billion(Constant 2012 Dollars) Projected US GDP: $30.8 Trillion(Constant 2012 Dollars) Source: Historical Statistics of the United States, Millennial Edition On Line, Cambridge 2006; CBO, The Budget and Economic Outlook: Fiscal Years 2013 to 2023, Feb. 2013; CBO, CBO’s Long-Term Budget Outlook, Supplemental Data, June 2012; OMB, Historical Tables, Table 10.1. Compiled by TCAII. Note: Federal Spending for 2040 is based on the Alternative Scenario Estimates.

11. We’ve Lost Control of the Budget Source: Historical Statistics of the United States, Millennial Edition On Line, Table Ea636–643 Federal government expenditure, by major function: 1789–1970. Congressional Budget Office, The Budget and Economic Outlook: fiscal Years 2013 to 2023, Feb. 2013. Compiled by TCAII.

12. Ability to Cover Mandatory Spending Projected 2013-2023 Source: OMB 2014 Budget, Historical Charts 1.1 and 8.5; CBO Long-Term Budget Projection May 2013

13. Where the Money Goes 1962 Discretionary 71.3%

14. Where the Money Goes 2012 Discretionary 36.1% Mandatory 63.9%

15. Where the Money Goes Discretionary 36.1% Discretionary 71.3% Mandatory 63.9%

16. Federal Spending by President (1977 – 2012)

17. Federal Spending and Revenue Trends

18. Federal Revenues and Outlays (Control of Congress and the White House)

19. Spending and Taxes as a Percentage of GDP 1970 - 2012

20. Spending and Taxes as a Percentage of GDP 1970 - 2023

21. Federal Debt Burdens

22. Historical Debt Burden (1800 through 2012)

23. Federal Debt Composition

24. Interest on the Debt

25. Interest Rate Risk

26. Federal Financial Hole(For Fiscal 2000 and 2012) Source: Data from the Department of Treasury, 2012 Financial Report of the United States Government. Compiled by TCAII. Note: Estimates for the Actuary’s Alternative Scenario are found in note 26 of the 2012 Financial Report of the United States. Future liabilities are discounted to present value based on a real interest rate of 2.9% and CPI growth of 2.8%. The totals do not include liabilities on the balance sheets of Fannie Mae, Freddie Mac, and the Federal Reserve. Assets of the U.S. government not included.

27. Federal Financial Sink Hole $20.4 Trillion (Your Share $72,500)

28. Changing Demographics 1960 Total U.S. Population: 179.3 Million 2015 Total U.S. Population: 321.3 Million 2050 Total U.S. Population: 399.8 Million Source: U.S. Census Bureau, Age and Sex Composition: 2010 & 2012 , 2010 & 2012 Census Briefs, May 2011, Dec. 2012; U.S. Census Bureau, Population Division, 2008. Compiled by TCAII.

29. Historic Annual Economic Growth

30. The Cost of Recession Source: CBO, The Budget and Economic Outlook, FY 2013 – 2023, Data 2-1

31. The American Workforce

32. Poverty in the United States

33. U.S. Median Household Income

34. Income Distribution

35. If The U.S. was a Household Sources: U.S. Department of Treasury, 2011 Financial Report of the United States Government; U.S. Census Bureau, Quick Facts. Note: Household figures are calculated based proportionally on the Federal Government’s finances using median income. Numbers may not add due to rounding.

36. Historical Receipts and Outlays

37. Total Federal Debt Per Capita & the Political Party in Power

38. Comparative Government Debt Burdens

39. Comparative Debt Burdens

40. Learning from Abroad Canada

41. Learning from Abroad Sweden

42. Growing Foreign Dependency Source: Office of Management and Budget, Historical Tables; Department of Treasury, Major Holders of Treasury Securities, January 16, 2013, Debt to the Penny. Compiled by TCAII. Note: 2012 public debt and foreign held public debt reflect data from September 2012.

43. U.S. Public Debt Ownership

44. Sovereign Fiscal Responsibility Index (As of September 2011) • Australia (1) • New Zealand (2) • Sweden (4) • Estonia (3) • China (5) • Chile (7) • Luxembourg (6) • India (12) • Brazil (10) • Denmark (8) • United Kingdom (9) • Netherlands (14) • Israel (19) • Canada (11) • Korea (17) • Poland (13) • Mexico (18) • Slovakia (16) • Norway (15) • Austria (21) • France (23) • Finland (22) • Slovenia (20) • Germany (25) • Spain (24) • Belgium (26) • Italy (27) • United States (28) • Hungary (29) • Iceland (32) • Ireland (30) • Japan (31) • Portugal (33) • Greece (34) Source: Comeback America and Stanford Graduate Students’ Sovereign Fiscal Responsibility Index. Compiled by TCAII. Note: Based upon IMF data that was reported in September 2011 and does not take into consideration subsequent events. Numbers in parenthesis indicate prior ranking.

45. Sovereign Fiscal Responsibility Index (As of April 2012) • Australia • Sweden • Estonia • New Zealand • China • Chile • Luxembourg • Denmark • Brazil • India • United Kingdom • Israel • Canada • Poland • Netherlands • Korea • Slovakia • Mexico • Austria • Norway • France • Finland • Slovenia • Germany • Belgium • Spain • Italy • United States • Hungary • Iceland • Ireland • Portugal • Japan • Greece Source: Comeback America and Stanford Graduate Students’ Sovereign Fiscal Responsibility Index. Compiled by TCAII. Note: Based upon IMF data that was reported in April 2012 and does not take into consideration subsequent events.

46. SFRI: Calculations Overall Fiscal Responsibility Score is composed of 3 equal parts: • Fiscal Space (Current Position) Sovereign Debt-to-Debt Ceiling, Total Debt-to-Debt Ceiling, and Foreign Held Debt • Fiscal Path (Fiscal Trend/Future)Projected future levels of debt and implied fiscal space • Fiscal Governance (Rules responsible for Past, Present, & Future) • Fiscal Rules Debt limits, Deficit Targets, Expenditure Rules, and Revenue Rules • Fiscal Transparency Open Gov. Policies, Autonomous Budget/Audit Process, Independent Forecasting • EnforceabilityNature of: Monitoring Body, Enforcement Body, Enforcement Mechanism, and Media Visibility of Rules Compiled by TCAII.

47. Federal Programs and Revenues

48. Interest Risk

49. Interest Rates

50. The 3 Budgets