A 10% Solution
The experiment in representational democracy is starting to show signs of severe stress cracks. We have always been a nation that debated and eventually worked through our differences, if only until the unresolved situation flared up again. I believe the last time we had this much animosity in the halls of Congress, the outcome was the Missouri Compromise. Of course that lasted a few years and then it was North vs. South. I am not sure that the outcome of the American Civil War was a political success. It ended slavery in the South but cemented us on the slippery slope of central government as the alpha and omega for American citizens.
We have members of Congress that do not seem to understand that if you are out of money, you quit spending. If you can’t seem to get your head around only spending what you have money for, then you should quit spending when you have maxed out the available credit. When you increase spending in one area of your life, unless you are independently wealthy or have a rich aunt, you have to decrease it in another. Our Congressmen seem to be living in a land of lollipops and rainbows where you can make something from nothing and simply create an endless stream of spending. Sounds more like a trip to Asbury Park with Grace Slick and her pet rabbit.
The business world has a perfect solution to the coffers being empty. Yes, those horrible American Corporations that provide the jobs and stoke the engine of the American economy. They look at how much their future cash flow is declining and enact a cut proportional to that reduction. Let’s say you are an automotive supplier and there is a down turn at the car plants. If it is a 10% decline in business, you enact a 10% across the board cut. For those in Congress, that would mean that you cut spending by 10% and reduce your work force by 10%. It does not mean that we reduce the rate of increase by 10%. I have no clue how a reduction in the rate of increase creates a spending cut. A cut means that you have less than when you started.
Now the reverse is also true. Corporations take those times when business is growing and spend a greater portion of what they make on raises, bonuses, and growing the business. Our government has this part of the equation down pat. Somehow we need to send the message that spending our money should be done frugally and within the construct designated by the Constitution. After all, isn’t that the document that defines the roles of each branch of government? And then he woke up.
Icool
Cobb
We have members of Congress that do not seem to understand that if you are out of money, you quit spending. If you can’t seem to get your head around only spending what you have money for, then you should quit spending when you have maxed out the available credit. When you increase spending in one area of your life, unless you are independently wealthy or have a rich aunt, you have to decrease it in another. Our Congressmen seem to be living in a land of lollipops and rainbows where you can make something from nothing and simply create an endless stream of spending. Sounds more like a trip to Asbury Park with Grace Slick and her pet rabbit.
The business world has a perfect solution to the coffers being empty. Yes, those horrible American Corporations that provide the jobs and stoke the engine of the American economy. They look at how much their future cash flow is declining and enact a cut proportional to that reduction. Let’s say you are an automotive supplier and there is a down turn at the car plants. If it is a 10% decline in business, you enact a 10% across the board cut. For those in Congress, that would mean that you cut spending by 10% and reduce your work force by 10%. It does not mean that we reduce the rate of increase by 10%. I have no clue how a reduction in the rate of increase creates a spending cut. A cut means that you have less than when you started.
Now the reverse is also true. Corporations take those times when business is growing and spend a greater portion of what they make on raises, bonuses, and growing the business. Our government has this part of the equation down pat. Somehow we need to send the message that spending our money should be done frugally and within the construct designated by the Constitution. After all, isn’t that the document that defines the roles of each branch of government? And then he woke up.
Icool
Cobb
posted by Cobb at
1:03 PM
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