Friday, February 27, 2009

It's about the Spending Stupid

Are you listening to all of talk about government spending? It's all about how to increase revenue to pay for things:
  • Let the Bush tax cuts expire to pay for the trillion dollar stimulus plan.
  • Raise taxes on capital gains and dividends.
  • Raise the gasoline tax or tax drivers per miles driven to pay for roads.
  • Raise the price of a stamp to "bail out" the post office.
Here's an idea. Cut spending. I mean real cuts, not the political BS where cuts mean smaller increases. Yes I know we are in a recession and we need to increase spending short term to provide a soft landing. But this should be temporary spending. That's why I don't like the package that passed.

The discussion needs to be about cutting spending. As a company grows, there is inherent inefficiencies and excess spending. If you want to survive you make cuts - you go Lean.
That'is what our government must do. Here's an example:

They are talking about eliminating Saturday mail delivery. That is a great idea. I don't think we need Wednesday delivery either but that's just me. This should either reduce the number of mail persons needed or the amount of pay they receive, or both. It should also reduce the need for further stamp price increases.

I'll bet you a 50 cent stamp that's not going to happen!

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