Summer Recess Toolkit

August 7, 2013

Download the PDF version of the Toolkit here — Take it with you to your local townhall meeting!

 

THE STATE OF THE ECONOMY

Debt: $16.7T, up 57.5% from $10.6T when President Obama first took office.1

Deficit: This year’s federal deficit is projected to be $759B. The White House projects that the cumulative deficits over
the next decade will total $5.8T, while the nonpartisan Congressional Budget Office expects a total of $6.3T.2 3

Unemployment: 7.4% and has been above 7.0% for 56 straight months.4 There are currently 11.5M Americans
unemployed, which is only slightly fewer than the 12.1M Americans who were unemployed in January 2009.5

Social Security and Medicare: The combined Social Security trust fund is on track to be depleted in 2033, then
able to pay only 77% of benefits.6 The Medicare Part A trust fund is on track to be depleted in 2026, then able to pay
only 87% of claims.7

Health Care Reform: The Congressional Budget Office estimates that the insurance coverage provisions of the
Affordable Care Act will have a gross cost of $1.8 trillion over the next decade, with a net cost of $1.36T.8

 

BIG GOVERNMENT: FALSE PROMISES / FAILED POLICIES

The Economy: Washington promised that increased federal spending would stimulate the economy, but
positive trends in the unemployment rate are attributed almost entirely to a reduction in the labor force
participation rate, not more people finding jobs.

  • The Number Of Part-Time Workers Is At An All-Time High Of Over 28 Million .9
  • The Number Of Full-Time Workers Is St ill Nearly 5.8 Million Below The Pre-Recession Peak.10
  • “The Unemployment Rate Has Dropped Almost Entirely Because Of [The] Decline In Labor Force Participation,” Not Because People Are Finding Jobs.11

The Middle Class: Since the day he was elected, President Obama pledged to help the middle class, but
after adding $6 trillion to the national debt and running annual trillion dollar deficits in the name of
economic growth, the President’s polices have made things worse.

  • Real Median In come Is 4.4% Lower Now Than At The End Of The Recession And The Beginning Of The Recovery.12
  • The Manufacturing Sector Has Lost 581 Thousand Jobs Under President Obama.13
  • National Homeownership Is At It s Lowest Rate In 18 Years.14

Obamacare: Obamacare was sold on the promises of lower costs and keeping your doctor and coverage
if you like them, but as implementation moves forward, those promises are being broken. The massive
expansion of government and regulations in the new health care law has made it harder for businesses
to grow and expand and making implementation unworkable.

  • Insurance Rates Could “Double Or Triple” On Healthy Consumers In The Individual Market.15
  • U.S. Chamber Of Commerce: “74% Of Small Businesses Will Fire Workers, Cut Hours Under Obamacare.”16
  • Delays In Implementation Will Add $12 Billion To The Deficit.17

Detroit Bankruptcy: Detroit is the largest municipal bankruptcy in the country’s history, and it was due
in large part to unrealistic promises made by the city government that led to unsustainable spending and
unfulfilled obligations. Efforts to manage debt with more borrowing failed and now the city is facing
the consequences.

  • Unsustainable Government Promises Led To $18.5 Billion Debt.18
  • Detroit Made Repeated Efforts To Manage Debt With More Borrowing.19
  1. “The Debt To The Penny And Who Holds It,” U.S. Department Of Treasury, Accessed 7/31/13
  2. “Fiscal Year 2014 Mid-Session Review,” Office Of Management And Budget, 7/8/13
  3. “Updated Budget Projections: Fiscal Years 2013 To 2023,” Congressional Budget Office, 5/14/13
  4. “Current Population Survey,” Bureau Of Labor Statistics, Accessed 8/2/13
  5. “Current Population Survey,” Bureau Of Labor Statistics, Accessed 8/2/13
  6. “The 2013 OASDI Trustees Report,” OASDI Trustees, 5/31/13
  7. “The 2013 Medicare Trustees Report,” CMS, 5/31/13
  8. “Table 1. CB O’s May 2013 Estimate Of The Effects Of The Affordable Care Act On Health Insurance Coverage,” Congressional Budget Office, 5/14/13
  9. “Current Population Survey,” BLS, Accessed 8/2/13
  10. “Current Population Survey,” BLS, Accessed 8/2/13
  11. Binyamin Appelbaum, “Labor Force Participation Is Not Coming Back,” The New York Times’ Economix Blog, 7/18/13
  12. Gordon Green And John Coder, “Household Income Trends: June 2013,” Sentier Research, 7/29/13
  13. “Current Employment Statistics,” BLS, Accessed 8/2/13
  14. “Housing Vacancies And Homeownership (CPS/HVS),” U.S. Census Bureau, Accessed 7/22/13
  15. Louise Radnofsky, “Health-Insurance Costs Set For A Jolt,” The Wall Street Journal, 6/30/13
  16. Paul Bedard, “74% Of Small Businesses Will Fire Workers, Cut Hours Under Obamacare,” Washington Examiner, 7/16/13
  17. David Morgan, “’Obamacare’ Mandate Delay Will Cost $12 Billion, Affect 1 Million Workers,”Reuters, 7/30/13
  18. Editorial, “Down And Out In Detroit,” The Wall Street Journal, 7/19/13
  19. Monica Davey And Mary Williams Walsh, “Billions In Debt, Detroit Tumbles Into Insolvency,” The New York Times, 7/19/13

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