Plot

In a story told in narrative flashbacks, young TV consultant Eric McMerkin is hired by President Chet Roosevelt of a bankrupt USA to organize a telethon in order to prevent the country from being repossessed by wealthy Native Americans.

In the distant future (1998), the United States of America has gone broke and is in danger of being foreclosed by a group of Native Americans, now owners of the massive Nike Corporation. A desperate and mellow fellow, President Chet Roosevelt decides to make a last-ditch attempt to save the country from complete bankruptcy... by raising money with a national telethon. And with this way-out-there premise as a launch pad, Americathon explodes into outer space and the country may have a prayer when the people running the show does not have a clue.—<mycroft@reactiveware.com>

In the (then-near-future) year 1998, the United States of America has completely exhausted their oil supply. Many Americans are living in their now-stationary cars and using non-powered means of transportation, such as jogging, riding bicycles, and rollerskating. Tracksuits have become a common attire, and paper money has lost most of its value. All business transactions are now conducted into gold; even a coin-operator explicitly states "Gold Coins Only". In the search for leadership, Americans elected Chet Roosevelt (John Ritter) as the President of the United States. A "cosmically inspired" former governor of California, Roosevelt proves to have little in common with Theodore Roosevelt or Franklin D. Roosevelt other than his name.

An overly optimistic man who frequently quotes positive affirmative slogans, Roosevelt organizes a series of highly publicized fundraising events, most of them are ultimately unsuccessful. His attention changes to pursuing a relationship with Vietnamese-American popular singer Mouling Jackson (Zane Busby). Real financial assistance comes into the form of loans from a cartel of Native Americans lead by billionaire Sam Birdwater (Chief Dan George), who controls Nike (styled as National Indian Knitting Enterprises during the film's release when they were still emerging as a company).

The federal government, now headquartered in "The Western White House" (a sub-leased condominium in Marina del Ray, California), finds itself facing national bankruptcy and in danger of being foreclosed and repossessed when Birdwater publicly reveals on national television that he lend America billions of dollars and demands repayment. However, the alternative is foreclosure and the country returning to its original owners. Birdwater provides an acceptable explanation for his stance, stating "Hey, I have to eat also. Does that make me a bad guy?"

In desperation, Roosevelt hires young television consultant Eric McMerkin (Peter Riegert) to help produce a national raffle. However, they eventually decide that the only way to raise enough money to save America is to broadcast a national telethon. They recruit the services of vapid television celebrity Monty Rushmore (Harvey Korman) to host this. Meanwhile, White House advisor Vincent Vanderhoff (Fred Willard) secretly conspires to ensure the telethon's failure. His goal is to allow members of the United Hebrab Republic (formed by the merger of Israel and the Arab states) to purchase what remains of the country when Birdwater forecloses.