Dear Editor,
Recently there have been reports of politicians scoffing the suggestion that government should pattern its financial planning more in keeping with that of the private sector. Perhaps their skepticism is warranted.
A family, priding itself for operating as a democracy, sat down to prepare their annual budget.
They immediately observed that although their current year’s income was only $100,000, they had budgeted $125,000 expenditures with a deficit of $25,000. Vowing to resolve the issue, they proceeded working on next year’s budget.
When they reconvened, it was discovered that although they anticipated the same $100,000 income, they had proposed a budget increased to $200,000 in expenditures, an additional $100,000 deficit.
Recognizing this was totally unacceptable, they set about to ‘get things back under control.?
Their next budget proposal was reduced to $150,000.
At first glance, the new deficit increase was still twice the $25,000 from the current year.
However, upon further review, they concluded that they had cut twice the current deficit (i.e. $50,000) from their original $200,000 proposal.
So they all patted themselves on the back, shook hands, and went on vacation.
Enough said!
William Meredith
Clarkston