Debts & Deficits

1. Debts & Deficits A Millennial Perspective Ryan Schoenike Young Americans for Federal Debt Awareness

2. Agenda • Where we are now • Challenges facing the Millennial Generation • Investment • Growth and Innovation

3. America Today • Real GDP grew 2.8% in 2010 • 2010 GDP $14.7 trillion ~ $14.2 trillion current debt • 13.7 million out of work • 17% of Millennials unemployed • At current rate it will be 2016 before we recover all jobs lost in the recession Source: BLS, BEA

4. Projected US Budget 2020 Source: President’s 2012 Budget

5. In 2025 Revenues = Social Security + Medicare/Medicaid + Interest

7. A Resource Constrained World Source: Global Foot Print Network

8. Prices are Going Up • Commodity futures are increasing • Corn up 92% over the past year • Soybeans are up 44% • Cotton is up 162% • Water • Demand 40% > Supply in 2030

9. The Cost of Education Source: College Board

10. 2006 Courtesy: John Doggett, Univ. Texas, Austin

11. 2009 Courtesy: John Doggett, Univ. Texas, Austin

12. Investment

13. Where Lack of Investment Gets US • Education among 30 industrialized countries • US ranks 25th in math • 21st in science • The top 25% of students rank 23rd out of 29 developed countries • US students are entering high school with 3rd-5th grade reading proficiency Source: Waiting for Superman

14. The Value of Education • In the U.S., a high school-educated worker is 1.8 times as productive, and a college graduate 3 times as productive, as someone with a ninth-grade education. • Nobel Prize–winning economist Robert Fogel of the University of Chicago has estimated the economic impact of well-trained workers.

15. Clean Energy Investment • $243 billion in 2010 • $186 billion in 2009 • 2010 Investment in China was up 30% to $51.1 billion • Distributed solar investment in Europe grew by 91% • Projected to reach $500 by 2020 Source: Bloomberg New Energy Finance

16. Other Countries are Investing • Investment from China into Africa is likely to hit $50 billion by 2015–up 70% from 2009.

17. How Will We Pay for Our Debt? • Still have a $14 trillion – How are we going to pay that? • We have to be careful not to slash investments • We can: • Reform Medicare/Medicaid, Social Security, Taxes, And… • Invest in future growth

18. Future Growth • 3.1% predicted Avg. US growth rate 2010-2021 • China around 10% • India around 8% Source: OMB, Reuters

19. The Middle Class is Growing • Brazil, Russia, India, China - Middle Class could grow from 250 million to 1 billion in the next decade • Middle class grows at a rate of 70 million per year. Source: Goldman Sacs

20. Innovation • Apple generated $65 Billion in revenue in 2010 • has $60 Billion in Cash • About $45 Billion comes from products created in the past 10 years. • iPods, iPhones, iPads and iTunes • Only 5%-7% of the final price is manufacturing costs Courtesy: John Doggett, Univ. Texas, Austin

21. Today in 1876 – Alexander Graham Bell makes the first successful telephone call.

22. Contact Ryan Schoenike rschoenike@gmail.com