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40-Year USA Inc. Data Points and Trends “65-05 1965 2005 Change National’ Healthcare Spending as % of GDP 6% => 16% 167% Federal? Healthcare Spending as % of GDP 1 > 5 Out-of-Pocket Healthcare Spending as % of GDP 3 > 2 - % of Adult Population Considered Obese 13 > 32 146 % of Americans Receiving Govt. Subsidy? 20 > 35 75 % of Americans that Pay No Federal Income Tax 20 »> 33 65 National’ Education Spending as % of GDP 5 > 7 48 Federal Education Spending as % of GDP > 1 -- Gross Debt as % of GDP 47 => 64 36 Interest Payments as % of GDP 1.2 »> 1.5 25 Gini Index of Income Inequality4 0.344 > 0.41 20 Net Debt? as % of GDP 38 > 37 -3 People Below Poverty Level as % of Population 17 => 13 -26 Defense Spending as % of GDP 7 => 4 -33 % of Americans that Pay 50% of All Income Tax 106 »> & -60 Federal Budget Surplus / Deficit as % of GDP -0.2 > -3 - Note: 1) Includes all government and private spending. 2) Includes federal spending on Medicare, Medicaid and other healthcare programs, excludes state spending on Medicaid. 3) % of Americans receiving government subsidy include ail recipients of Social Security, Medicare and Medicaid, as well as government employees (incl. federal / state /local / military). Data excludes our estimated duplicates. 4) A Gini index of 0 implies perfect income equality and an index of 1 implies complete inequality, the higher the index, the more inequality there is. Earliest data for USA was measured in 1967. 5) Net debt is federal debt held by the public. 6) Earliest data available in 1980. Source: White House Office of K Management and Budget, Department of Health & Human Services, Centers for Disease Control, internal Revenue Service, Census Bureau. (@ 4 www.kpcb.com USA Inc. | High Level Thoughts 47 Summary: 40-Year USA, Inc. Trends* e America is spending beyond its means, and the problem — with mounting losses & increasing debt — is getting worse, not better e Healthcare spending and obesity are rising dramatically. e Education spending is growing slower than healthcare spending. e Defense spending is declining on relative basis. e More and more Americans are on the government payroll or receive government subsidies for retirement income, medical care, housing, and food. e Inequality of income and wealth is rising, and fewer Americans pay income taxes to support USA Inc. e Government increasingly resorts to borrowing to fund rising spending levels (primarily for entitlement programs)... Note: *We chose a 40-year period from 1965 to 2005 to examine ‘normal’ levels of data points and trends. We did not choose the most recent 40-year period (1969 to 2009) as USA was in deep recession in 2008 / 2009 and underwent Significant tax policy fluctuations in 1968 /1969 and subsequently many metrics (like individual income and corporate KP profit as well as federal budget surplus / deficit and debt levels) were significantly off their ‘normal’ levels. a USA Inc. | High Level Thoughts 48 HOUSE_OVERSIGHT_020865