Frequently Asked Questions

The number mostly used in the media and by politicians is the gross debt, which was $17 trillion at the end of 2013. But gross debt includes amounts the federal government essentially owes itself, such as the Social Security and other “trust funds.” It is more accurate to include only the public debt owed to others, which was $12 trillion at the end of 2013.

If all government receipts and outlays remain the same percentage of the economy, with the exception of projected increases in Social Security, Medicare, and interest payments, the debt would more than triple to $37 trillion by the end of 2023.

No. The deficit for fiscal year 2013 (ending September 30, 2013) did decline to $680 billion from $1.1 trillion in fiscal year 2012. However, extraordinary dividend payments from the two mortgage giants, Fannie Mae and Freddie Mac, along with accelerated income by high income taxpayers and other non-recurring budgetary benefits, accounted for as much as $200 billion. Without these non-recurring benefits, the deficit in 2013 may have been close to $900 billion. Allowing for the austerity measures already taken and others expected, the federal public debt will still be likely to exceed $30 trillion within ten years.

Contrary to popular belief, there are real limits on the amount of excess reserves that the Fed can create through “quantitative easing.” If this limit is exceeded, there is a risk that the Federal Reserve banks themselves would become insolvent.

The CBO and OMB long-term projections have been way off for many years. Even their short term projections (two to three years out) have often been wrong by large amounts. These official sources of future estimates of federal government deficits do not account for recessions, they take legislative commitments at face value, and generally foresee economic growth through rose-colored glasses. They also do not allow for the possibility that interest rates on U.S. federal debt could ever be driven higher by credit concerns.

The 2 percent of American tax filers with the highest incomes pay less than 23 percent of adjusted gross income in federal income taxes. Including all federal, state, and local taxes on income and sales, the 2 percent of highest incomes are estimated to pay less than 35 percent in taxes, including the 2013 tax rate increases. This is far less than most comparable countries. Even after taxes and benefits, the final distribution of income in the United States is more unequal than almost all other developed countries. After taking into account all benefits received, approximately 35 million Americans remain in poverty.

Health care comparisons by unbiased international organizations show that Americans are not receiving anything close to the best health care in the world. By most measures health care results in the United States are mediocre to poor when compared with other developed nations. On a cost-benefit basis, Americans are at the very bottom of the rankings.

While many higher education institutions in the United States remain at the top of the lists of the world’s most prestigious colleges and universities, there is growing concern about the real value of higher education in America. Our colleges and universities are the most expensive in the world, yet many have not adapted to teach the practical skills needed in today’s global marketplace. In our public schools, spending is among the highest in the world and results are barely mediocre. Children from lower income families are especially undereducated.

On the contrary, it is unpatriotic to stand by and watch as a dysfunctional government, controlled by a political duopoly and enabled by an over-powerful judiciary, turns the American dream into a nightmare. There is ample evidence to show that the framers would be the first to rewrite their Constitution under the present circumstance, if they were around to see the results of two and a quarter centuries of political deterioration.

There is no way to predict the future, but the risks of rewriting the Constitution will pale against the near certainty of decline, default, and disaster that will become more evident in the next few years. The solutions proposed in The Commonsense Rules may not all be exactly the right ones (although the author would argue that they are). But the prototype of a new constitution contained in the book and available on this website could form a good starting point for the national debate that must take place soon if the nation is to be saved.

First, discuss the ideas with friends and family, especially the ones who have fallen into the trap of ideological partisanship on the right or the left. Second, let us know that you are supportive of the movement on the Feedback page of this website. Third, vote for less partisan, more independent-minded candidates, especially those who have pledged to support real change. Finally, stay tuned for more information about what we can do together for a better future!