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Monday, June 4, 2012

Government is a Business: An Analogy

Imagine, for a moment, that every citizen our country was investing in the same business. Instead of having all of us squeeze into the same boardrooms to discuss the business we'd send representatives to attend the meetings, and report to us on the business plans, decisions and results. We'd tell the representatives what we wanted them to change to make the business more profitable, etc. Naturally, we'd like to see a return on our investments. But also naturally, we're happy to invest as much as necessary to keep the business afloat and from going bankrupt.

Now imagine that these representatives started collectively lying to us about the business. They started reporting that the business is providing more services than ever before but that they needed more money to keep it all up. We'd see a return on the investments later. Some of us started working extremely hard and investing more than others in the business. Some of us (instead of investing) started seeing the 'returns' of other people's investments. A division arose. The takers started demanding more and more from the givers, who started really struggling to come up with enough money to keep the business going. It was getting deeper and deeper in debt, and the representatives could no longer hide the truth from the investors, who were becoming disenchanted with the whole thing. This business was going bankrupt, and needed some major reforms if it was going to survive at all. The representatives refused to reform. Chaos ensued.

Yes, this is America. Not a perfect analogy, of course, but you get the idea. Ever since the 1974 Budget Reform Act, federal budgets have increased 10% annually, ballooning into massive bloated deficits. Federal revenue certain hasn't kept pace with the growing expenses in the 'budget.'  And our lawmakers and president seem little inclined to do anything about it. When Bush left office, the difference between spending and budget (budget deficit) was $167 billion. And every year since, Obama's budget deficit has been $1 Trillion. This despite the fact that the budgets were larger than each preceding year. This despite the fact that revenue has shrunk over time. Is it any wonder than in a little over three years Obama added $5T to the deficit? Now it's up around 15.5 Trillion, total? 5 Trillion was Bush's in 8 years, then the next $5T happened in only three years. THIS IS A PROBLEM.

Every year the federal budget gets bigger. Every year the government spends 10% more defacto than the year before. Every year the spenders in Washington spend over the budget amounts, which means the next year that any departments permitted more than their 'normal' 10% increase gets 10% more of the total given them the year before. This problem is a compounding problem. And Obamacare hasn't yet been added to the mix.

We need baseline budgeting back in Washington, like any household or any small business or even any large business needs baseline budgeting. We need responsible representatives ready to tackle the spending and deficit and return fiscal sanity to Washington. We need more American citizens to realize the pickle we've let the government get us into by them taking advantage of the citizens' "wants" for benefits and the "turnoff" of budget talk. We need politicians who are not willing to mortgage our children's and grandchildren's futures just for a vote. We need politicians serious about learning to "do without" in federal budgets and protecting taxpayer money by using it as if it were their own. We need national media more concerned about their journalistic integrity instead of worrying about how to protect their chosen political party (Democrat) and hurt the opposing side.

We already know about the fraud committed in Medicare (doesn't happen in private insurance). We already know about wasteful spending by the GSA in "conference" expenses, travel expenses for people who work at home, etc. We already know about the overlapping government agencies that should be merged. We already know about government workers who can't be fired (on the taxpayer dime) for watching porn on the job. We already know that government makes bad investments all in the name of their energy policy. We already know that unions donate to Democrats and RINO Republicans so that these politicians will continue to funnel taxpayer money their way in the form of projects and protections and benefits far beyond their peers in the private sector. We already know that Obama isn't serious when he talks about solving any of these problems because he's had three and a half years and hasn't done anything except add insult to injury in every case. We need Mitt Romney.

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