1. Setting the Framework: Economic Growth, Investment and Deficit Reduction Tamara Draut, Demos Lawrence Mishel, Economic Policy Institute

2. The Employment and Income Landscape

3. Family income growth by income group, 1989-2007 162% 108% Top 0.1% Top 1% 38% 95-99% 7% Bottom 90%

4. High unemployment ahead Projected 2012: 8.3% 2013: 6.5% Source: Bureau of Labor Statistics and Moody’s Economy.com

5. Underemployment, 2000-2010 Black Hispanic All Source: Economytrack.org

6. Setting Priorities What is an Emergency?

7. ‘Emergency’ spending in 2010 Source: EPI Analysis of CBO Estimates *Includes EUC, EB, FAC, and COBRA. ** CBO Estimate of the Administration's Request

8. Setting Priorities Ensuring Retirement Security

9. Income composition for the elderly, 2008 Earnings Other Pensions Social Security Source: Social Security Administration (2010)

10. Participation in employer-sponsored retirement plans in 2008*, by race

11. Male life expectancy at 65 2006 1986 2006 1986 Source: Waldron (2007)

12. The long-term budget challenge Controlling escalating health care costs

13. The Long-term Budget Outlook: One view Other Mandatory Medicare & Medicaid Revenue Social Security Net Interest Source: EPI Analysis of CBO Long-Term Budget Outlook and Budget and Economic Update

14. The Long-term Budget Outlook: Another view Net Interest Other Mandatory Medicare & Medicaid Revenue Social Security Source: EPI Analysis of CBO Long-Term Budget Outlook and Budget and Economic Update

15. What Drives Health Care Costs Source: Congressional Budget Office (2007)

16. Health Care Costs in the Private Sector 11.7% 8.5%

17. The long-term budget challenge Rebuilding our revenue base

18. Revenue as a Share of the Economy Hits a 60-Year Low Revenue Deficit Sources: OMB Historical Tables 2.1 (1945-2009), CBO Analysis of the FY2011 Budget (Projections 2010-2020)

19. The Bush-Era Tax Cuts Account for Half of the Deficit After the Economy Recovers TARP Economic Recovery Measures Other Economic Downturn War costs Bush-era Tax Cuts Source: Center on Budget and Policy Priorities Analysis of CBO Estimates

20. The long-term budget challenge Investing in growth

21. With the Exception of Temporary Spending Related to the Recession, Discretionary Spending will be at Historically Low Levels Projected Domestic discretionary spending *Includes Departments of Veterans Affairs, Homeland Security, and State Source: OMB Historical Tables

22. The Physical Infrastructure Deficit (in billions) Estimated Spending Projected Shortfall (Based on 5-year spending needs)

23. Public Spending on Childcare and Preschool, 2005 U.S. 0.4% Source: OECD (2010)

24. Percentage of Public University Revenue from State Appropriations and Tuition Source: U.S. Department of Education

25. Our Fiscal Security The Responsible Path toward Recovery and Long-Term Growth