Economic Meltdown - A Family Preparedness Plan for Disaster

What is the One Cent Solution?

The One Cent Solution is simple: If the government cuts one cent out of every dollar of its total spending each year for six years, we can:

• Balance the budget by 2019.
• Reduce federal spending by $7.5 trillion over 10 years.
• Reduce the debt $3.4 trillion over 10 years.

The One Cent Solution envisions that while all areas of federal spending should be considered, some programs may be too critical to cut deeply. In that case, other programs must be reduced more so that the total amount cut is equal to one cent for every dollar each year for six years.

For a simple example, let’s say the federal budget only had three programs funded, each with an annual budget of just $1.00.

1. Program A is simply cut by one cent every year for six years. That means the annual budget for Program A is $0.99 in 2012, and then $0.98, $0.97, $0.96, $0.95 and finally $0.94.
2. However, no cuts may be recommended for Program B. It is already lean.
3. But then, Program C would have to be cut by two cents each year for six years so that the total federal budget is cut by one cent for every total dollar, for a balanced budget by 2019.

The One Cent Solution contains three key distinctive elements.

The Three Keys

1. A Plan that Works

The One Cent Solution gradually reduces total government spending (excluding interest payments) by making cuts equal to one cent of every dollar each year for six years. It also caps overall spending at 18% of GDP beginning in 2018 and beyond. This simple solution balances the budget by 2019, reduces federal spending by $7.5 trillion over 10 years and restores America’s financial future.

2. Legislative Strategy

The One Cent Solution supports the One Percent Spending Reduction Act of 2011, which entails four key provisions.

1. Spending caps on total government spending (both discretionary and entitlement) equal to a one percent reduction in spending each year for six years.
2. Congressional action to reform spending programs to meet the One Percent caps. In meeting the caps, Congress may cut some programs more than 1 percent and some less, as long as total government spending is reduced by 1 percent each year for six years;
3. If Congress fails to enact the needed reforms, then mandatory, “across the board” spending cuts occur each year to bring spending reductions into line with the One Percent spending caps.
4. Starting in the seventh year (2018) and thereafter, the bill caps overall spending at 18 percent of Gross Domestic Product (GDP) to ensure that it is line with expected future revenues. (Historically, federal revenues have averaged 18 percent of GDP.)

Learn more about current legislation.

3. Public Support

As citizens, we must own the problem. It’s just not right for us to pass on this debt to our children and grandchildren. Tough decisions are ahead. The key to balancing the budget and reducing the national debt is you.

If we sign on 1 million citizens with representation from every congressional district, we can get Congress to focus on this solution and give them the political will to act. The One Cent Solution is a true American grassroots movement, started by citizens who believe good ideas can originate outside of Washington.

Through the One Cent Solution campaign, we are not only insisting upon action, we are providing a nonpartisan, simple, equitable way to get the job done.

Become the solution.