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This is the way most businesses operate. In reality, businesses often have to spend their way out of losses with innovative R&D and marketing. The fact that cre
by jcnnghm 17y ago
This is the way most businesses operate. In reality, businesses often have to spend their way out of losses with innovative R&D and marketing. The fact that credit exists smooths out the ups and downs in revenues is a good thing.
My comment wasn't related to this, but you're missing a big difference. If a business doesn't get there finances straightened out, they go under. If a business is wasting their money on stupid consulting projects causing their prices to rise, you can stop buying their products. You can't do that with the government.
Imagine the long-term cost of winding down government services, just to have to wind them up again? There are huge ramping costs to take into consideration, not to mention the impact on the economy. While I agree that government spending is a little ridiculous at times, breaking it down into simplistic terms ignores the vast tasks that even a stripped down federal government must undertake.
You're assuming that it's desirable to ramp them back up. I am totally comfortable doing away with Social Security and Medicare, lowering defense spending back to $3599 from $6071, drastically cutting anti-poverty programs so that everyone has to work to survive, and using the surpluses created by those reductions to pay down the federal debt to eliminate the interest expense. I'd also be for moving the Education and Mass Transit taxes back to the states so a bunch of stupid restrictions don't have to be met, like the 65mph speed limit and No Child Left Behind. While at it, we should drastically reduce our health research funding since the US represents 81% of global health R&D spending, and eliminate future federal employee retirement benefits. The mortgage credits can take a hike as well.
Also, because of the way most people spend money in reality, the government would go broke if they tried to collect taxes without witholding. Sad but true.
That's a feature, not a bug. If the average family had to write a check for $1,523 every month, it wouldn't be long before everyone was demanding accountability and cost reductions, instead of more services.