In President Obama's weekly radio address, he said the U.S. can't simply "cut our way to prosperity." I must admit that I fully agree with President Obama on this point. In my 27 years of business experience, I have never found cutting costs the solution to turning around a declining business.
However, President Obama should also include the other ways I've learned that won't turn around a declining business:
The solution I've found to work the most often is to change the product so that more customers want to pay for the product. For the U.S. that would mean businesses generate more profits, which then results in more taxes being paid. So, the U.S. needs to enable all private enterprises to grow and increase profits.
Unfortunately, I don't think the government will listen to me :-) So, I think we can expect more tax and government spending coming as solutions.
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2 comments:
While I typically compare the government to a business, this is one time that really can't be done and here is why. The Government is not selling a product so unlike your business, dropping prices (tax cuts) and reducing product lines (government handouts) would in fact provide for a better climate for business and as it always has int he past, more revenue will be generated for the government (increased tax revenue).
Our government is the one place we want less customers (government employees, illegals receiving federal aid, foreign aid - er kickbacks) allowing us to put money to better uses. It is time to start making the little cuts that are drops in the bucket until we fill the bucket. It is time we set maximum numbers of federal employees and get what we pay for from those we elect. It is time to stop increasing the federal limo fleet by 70%. It is time to require proof of residency when applying for aid and deporting those who are not able to show they are here legally.
Most of all it is time to get rid of the ruling elite in Washington from any and all parties and set term limits in Congress, pass a balanced budget amendment, and throw congressional tax cheats in jail.
Very interesting reading. Great post. Many thanks.
I do not believe that the U.S. is declining as such - there is just to much being drained on
overseas peace keeping missions - if all those money would be invested in economy...
In the consuming economy as we are in, we need to cut the cost of the government, get rid of
the non value added social programs - to balance the budget.
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