National Debt

The national debt is one that most politicians don't like to talk about. Where do you stand?

A:

To be sure, debt is not a friend of America and that must be our approach. Debt is an unwise burden that we cannot permit to be the legacy of our already great nation.

Just a few facts:

  1. At the end of the month I was born, August 1954, our nation's Public Debt was $272.6 billion.
  2. At the end of the month that John Fitzgerald Kennedy was assassinated, November 1963, our Public Debt was $308.9 billion.
  3. At the end of January 1989, our Public Debt was $2.6 trillion.
  4. At the end of the first month into the new millennium, our Public Debt had doubled, rising to $5.6 trillion.
  5. At the end of November 2008, our Public Debt was $10.6 trillion.
  6. At the end of the first month after Barack Obama took office, our Public Debt had dipped slightly but was still over $10.6 trillion.
  7. Over the next 8 years, our Public Debt saw the largest increase than at any time in our nation's history. At the end of the month Donald Trump took office, January 2017, our Public Debt had nearly doubled, $19.9 trillion.
  8. Two years into the Trump presidency, and the Public Debt has continued its dangerous rise, increasing at a rate of over $1 trillion per year, to its current level of nearly $22 trillion as of this writing.
  9. Over the course of the last ten years, our nation's Public Debt has more than doubled setting a very dangerous precedent for our nation. In fact, according to the Congressional Budget Office, *"large and growing federal debt over the coming decades would hurt the economy and constrain future budget policy. The amount of debt that is projected under the extended baseline would reduce national saving and income in the long term; increase the government's interest costs, putting more pressure on the rest of the budget; limit lawmakers' ability to respond to unforeseen events; and increase the likelihood of fiscal crisis. The report goes on to say, "in that even, investors would become unwilling to finance the government's borrowing unless they were compensated with very high interest rates." THE BUREAU OF THE PUBLIC DEBT, UNITED STATES DEPARTMENT OF THE TREASURY
  10. The last and most poignant fact, the last time the United States had no debt was January 8, 1835.

OUR PUBLIC DEBT PLAN:

  • Restructure America’s debt.
  • Find ways to immediately increase revenues.
  • Freeze new government spending for 6 months or until the completion of a government-wide audit.
  • Cancel production of US pennies and nickels for the next year – TALKING POINT… WHAT ABOUT MINTING SILVER OR GOLD COINS TO REPLACE THE PENNY AND THE NICKEL?
  • Implement a balanced plan that does not involve raising taxes or cutting key programs.
  • Audit all no-bid government contracts.
  • Revisit the government bidding process.
  • Immediately reverse massive tax cuts that benefit the wealthy.
  • Restructure Social Security to insure its long-term liquidity – money to be deposited into a government account that accumulates interest. A retiree would have several options available to receive benefits as follows:

o   Withdraw at the age of 62, receive a percentage of deposit minus a percentage of the interest accrued on that deposit, calculated to be paid monthly over the life expectancy of that individual.

o   Withdraw at the age of 65, receive the full deposit minus a percentage of the interest accrued on that deposit, calculated to be paid monthly over the life expectancy of that individual.

  • Restructure CMS to insure its long-term liquidity.
  • Expand on programs to eliminate fraud and to recover monies lost due to fraud, including prosecutorial authority. Perpetrators will be prosecuted to the fullest extent of the law.
  • Immediately order a full audit, government wide – to be performed by an auditing agency who is verifiably free of any conflicts of interest. After audit is complete, President Davenport will issue a comprehensive report to the American public and necessary changes will be implemented which include the implementation of a sound accounting process that includes annual audits to assure the long-term liquidity of the United States government.
  • Issue Treasury Bonds to stimulate spending without raising taxes.
  • Issue EO ordering 180-Day hiring freeze immediately upon assuming office. EO will also freeze all salaries of government employees.
  • Eliminate the spending cap, which was symbolically imposed. It’s a waste of taxpayers dollars to have the cap in place.
  • Federal employee salary study – Goal - to ascertain whether federal workers are being adequately or over compensated in their positions.
  • Eliminate redundancy in hiring and responsibility – GOAL – To ascertain whether there are multiple individuals, departments or agencies doing the exact same job.
  • Spending cuts – with a scalpel and not a hatchet.
  • Implement progressive flat tax that will decrease over time as revenues reach a certain level each FY.
  • Issue Treasury notes - $1K par value.
  • Privatize the USPS. The United States Constitution, Article 1, Section 8, Clause 7 states, “to establish post offices and post roads”. There is no directive for the United States government to “operate” the post office.
  • Expand Federal Savings Bond program.
  • Reinvest in our nation’s crumbling infrastructure - $4 trillion by most estimates (ASCE).
  • Expand government savings bond programs making them again available through banking institutions across the country – Issue targeted savings bonds for example: Bonds for the Public Debt – the money would be deposited into an account that would be used to pay on the public debt.
  • Stricter penalties including mandatory prison time for those found guilty of fraud against the United States of America.
  • Impose restrictions on the number of jobs that any American corporation can have in other countries. If over 30% of its overall workforce is outsourced, will result in a tax penalty.
  • Expand confidential whistleblower program.
  • Bill: Make the United States Marine Corps its own branch.
  • Bill: Combine ICE and DHS.
  • Bill: If no budget is passed within one calendar week of the expiration of the previous FY, the previous FY allocations would be automatically extended minus ten percent.

“NEITHER A BORROWER OR A LENDER BE.” ~Benjamin Franklin

TALKING POINTS:

Advantages of Reinstating the Gold Standard

The benefit of a gold standard is that a fixed asset backs the money's value. It provides a self-regulating and stabilizing effect on the economy. The government can only print as much money as its country has in gold. That discourages inflation, which is too much money chasing too few goods. It also discourages government budget deficits and debt, which can't exceed the supply of gold.

Disadvantages of Reinstating the Gold Standard

One problem with a gold standard is that the size and health of a country's economy are dependent upon its supply of gold. The economy is not reliant on the resourcefulness of its people and businesses. Countries without any gold are at a competitive disadvantage.


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