Editor,
So you think Enron had a great scam going?
Imagine a world where you start the year making a wish list of all the things you want to buy and spend money on. Now imagine getting to do all the things you want to do and buying all the stuff you want.
Next, and this is where you really have to push the realm of fantasy, imagine having the ability to spend all of this money without knowing how much income you will have for the year.
Don’t worry, if it turns out you don’t have enough money in your checking account to pay for all the stuff you bought you can force your boss to give you a raise to cover the difference or just use the line of credit you have set up against the future earnings of your boss’ kids.
Sound too good to be true? It is ... unless you are the federal government.
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No real changes in government will occur in this country until the owners, you and me, make the management, the politicians, live by the same economic rules as us Joe six-packs.
This will take two key changes.
First, the government should not make a budget for a new fiscal year until all of the revenues for the preceding fiscal year are accounted for. Let’s eliminate “projected” surpluses or deficits and get to the “actual” numbers.
Second, don’t automatically take taxes out of employee paychecks. Why should Uncle Sam get the interest on your money? Instead send out a monthly bill asking for the government’s “just due.”
At $30,000 annually, the $2,500 a month take home would feel pretty sweet until you had to cut a check for $1,000 plus to cover the “necessities” of government.
There are certainly other lessons of economic reality that you and I face on a daily basis that Uncle Sam should be taught.
In this case, however, it’s enough that he should start with the basics and work up from there. Remember, the government should work for us, not the other way around.
Chris Welch
Executive MBA student
