Restructuring is Needed to Stop Government Overspending
A new structure for how money flows through government is vital for long term economic stability in the United States. The government currently runs like an anti-business. Processes need to be reworked and streamlined in order to reduce the need for further debt and to decrease yearly interest payments.
An Example of Overspending
A little while ago I was having a conversation with a person (I will leave unnamed) in the military. He just got off work and looked frustrated. He looked at me and said “You wouldn’t believe what happened today. We purchased brand new computers for the entire base”. This didn’t seem strange until he followed with the fact the computers being replacing were less than a year old.
Why did they do it? He explained there was money left over in the budget and the end of the year was fast approaching. If they didn’t spend every last bit of money it was possible they’d receive a smaller budget the following year. Even though they had no need for new computers it was the fastest way they came up with to burn through the money.
Think of how a successful company runs. It’s normally broken down into divisions. Each division is individually accountable for being productive. They succeed by keeping costs low and revenue high. People are rewarded when they think of inventive ways to cut cost, and are scrutinized when they max out or go over on budgets.
The government on the other hand runs very differently. Government divisions are pushed to spend as much as possible. They get rewarded for spending needlessly and are penalized for cutting costs. This generates two major problems: the first is the obvious financial burden it causes (increased national debt) and the second is the inability to measure “success”. This leaves many government workers with little to no accountability. Low accountability eventually leads to a lack of motivation and production.
Economic Restructuring of the US Government
Funds brought in through tax revisions should be targeted toward domestic companies currently in a position to expand and create new jobs.
Tax money should be used to hire quality accounting and finance consultants to help with the government’s own economic restructuring. It would be a very large project and would cause immediate hiring throughout each firm.
Simply coming up with spending cuts in our current government structure is laughable. It’s like trying to plug a few holes in a boat that’s made out of sponges. The boat itself needs a new structure if it’s going to have any chance at staying afloat.
Table of Contents & Page Links
1) Income Inequality Influences the US Personal Savings Rate
2) Income Disparity Sparked by Low Top Marginal Tax Rates
3) Unequal Distribution of Wealth
4) Tax Breaks and Tax Loopholes for the Rich
5) Low Capital Gains Tax Rates Cause Investment Bubbles
6) Great Depression VS Great Recession
7) The Job Creators Myth Debunked
8) Government Spending and the National Debt
This is a working paper and will be updated and expanded upon as time permits. All comments, questions, and alternative opinions are greatly appreciated.
Brian Rogel isn’t a household name but his analysis of wealth inequality could become household reading.