In the private sector, small businesses, partnerships, and large corporations alike must constantly examine where the money is being spent in order to show a profit, and indeed survive. Private enterprises do not have the luxury of a constant in-flow of taxpayer cash. Instead, they must work hard for customer business and invest wisely.
When a company is experiencing difficult times (perhaps because of a temporary slack in product demand due to an economic downturn), it must reassess each area of the business to see where they are spending their cash in order to avoid losses.
For those companies that are unable to take evasive action in a timely manner, they may end up in bankruptcy. In this scenario, the reassessment of spending is mandated by the bankruptcy court.
Nations of the world are not exempt from the demands of their creditors. Borrow too much, keep losing money, and eventually the nation will be bankrupt.
The solution to the US Government’s massive financial problems can be taken from the play book of Jack Welch, former CEO of General Electric or any number of successful corporate managers: Balance your budget and live within your means. It’s that simple.
Can the current representatives in Washington fix the nation’s finances before it is too late? Unfortunately for all of us, the answer is NO.
THEY SIMPLY DO NOT HAVE THE COURAGE!!
However, there is much that we as tax payers can do to try to turn the tide away from despair.
First, read the book Our Government is Broke in order to get an education on how bad the problem is and how it can be fixed.
Second, send a message to your Washington representatives that they need to take the bold moves necessary to save the republic, or resign their position to make way for someone who can.
Check out Steve’s Power Point Presentation!
photo credit: www.flickr.com/photos/spcbrass/