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Robert Brown

Digital Advisor,


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How can we fix the budget process?

How can we fix the budget process?
An entity requests a budget to deliver a product or service. It may be approved but in my experience they are never given what they ask for and it is usually reduced by some amount. This reduction forces the entity to adjust their ability to deliver based on the allocated budget.
1. Do entities ever offer up an inflated budget to get what they really need? If so, how do we identify an inflated budget?
2. If the entity doesn't spend their entire budget should shareholders, investors or taxpayers get a rebate?
3. What if the entity was innovative and delivered cheaper/faster/better? Should the entity be rewarded for saving budget dollars? Should it be handled differently if the entity is public, private, corporation, non-profit, government etc...?


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  • Oct 10 2013: Let's talk about the deficit spending and eventually bankruptcy or default on the debt payment. Look at the city of Detroit, or for that matter, countries like Argentina which had defaulted once before and possibly will default again in near future. The reason for these problems, of course, is due to unchecked deficit spending, i. e. consistently "living beyond its means". This kind of reckless actions have always consequences which were loaded onto the society of the citizens after the bankruptcy or default by the following austerity and heavy taxes and shortage of services to them. Of course this is grossly unfair to the citizens aftermath and the creditors loss from the defaulted debts. (even though the creditors won't lend their money to the entity, or buy their bonds, again, that exacerbates the citizens' misery during the austerity process.)
    One of the solution of the reckless deficit spending is to cut off the cozy relationship of the city or central government between the special interest political lobbies and the elected government officials. It is well known that the elected mayor and city council members were frequently helped by the unions, or business interest too, and the unions, in turn, will extract a pound of flesh, by demanding higher /unsustainable pensions or other benefits for their workers. In other words, unions or other special interests should be prohibited from contribution to, or campaigning for, the candidates in the election. Every citizen can contribute to the candidates but the money should come from their own pockets. And similarly for the campaign activities; not as a union member/employee.
    For any government, there should be a numerical limit on how much it can borrow, something like 200% of GDP or revenue base, but there could be a minor limit, say, 150% of GDP that causes a "warning" to slow down the additional borrowing when required.
    The effect of default by individuals or corporations are minor, unless by too-big-to-fail ones

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