Government Money Management: Can Your Vote Tackle The Issue?
7 min read
Intro: The Business of America
While most people think of the United States as a democracy, it’s more accurate to describe it as a constitutional federal republic—one that’s also the world’s largest enterprise. Like any business, the country must manage its revenues, expenses, and assets. Yet, as we approach the 2024 presidential election, voters must ask: Who is the candidate willing to audit the books and address inefficiencies rather than relying solely on taxation as a solution?
At its core, voting isn’t just about picking a leader—it’s about selecting someone who understands that America is a business. The decisions made in Washington trickle down to us, the individual taxpayer, investor, and business owner. As we evaluate the upcoming election, let’s discuss why voting for a candidate focused on fiscal responsibility, rather than taxing only specific groups, is what’s truly "good for business."
The Taxation Debate: More than Just 'Soak the Rich'
On one side of the political spectrum, there’s the narrative of raising taxes on the wealthiest Americans or corporations to fund social programs. This may sound appealing to some, but it doesn’t address the core issue: the government’s tendency to spend inefficiently.
Historically, tax-the-rich proposals have focused on high-income earners and corporations, promising to balance budgets and support essential social services. However, this approach often overlooks inefficiencies within government operations, contributing to budget expansion and wasteful spending. Additionally, it’s worth noting that high-income earners and corporations frequently leverage complex tax codes and legal loopholes to minimize their tax burdens, reducing the potential revenue impact. Therefore, a more balanced approach, focusing on both efficient spending and fair taxation, may prove more effective.
A Smarter Approach: Auditing Government Spending
Contrast this with candidates who prioritize auditing government spending—taking a hard look at where taxpayer dollars are going, identifying waste, and making cuts where necessary. This approach advocates better resource management rather than simply extracting more from the tax payers.
For example, candidates in the more fiscally conservative camp have proposed solutions like:
Government Audits: Regular audits to ensure programs are functioning efficiently and achieving their intended goals.
Eliminating Redundancies: Removing overlapping or redundant programs that drain resources without providing additional value.
Reforming Entitlement Programs: Proposals to reform Social Security, Medicare, and Medicaid by cutting waste and ensuring long-term sustainability.
Decentralization: Encouraging states to manage certain programs, ensuring greater accountability at local levels.
Example: GOP Focus on Government Spending
In the 2024 election cycle, there are candidates who have emphasized the need to address wasteful government spending. For instance, Republican candidates have historically favored reducing the federal deficit by trimming down bureaucracies, calling for a reduction in federal agencies' size and scope. They focus on balancing the budget not through excessive taxation but by addressing the structural inefficiencies in Washington.
Which candidate’s platform includes a plan to implement mandatory spending audits across all federal departments? Which candidate argues that by cutting back on wasteful spending, the government can reduce its reliance on deficit spending, lower taxes for all, and still fund critical social services?
Rather than relying on raising taxes for a specific subset of the population, this approach looks at making government spending more efficient and trimming the hypothetical fat.
Why This Matters to You: Personal Finances and the Government
What does this mean for you, the voter? Simply put: government financial health impacts personal financial health. Just like a business that constantly operates at a loss, a government that can’t control its spending will eventually pass that burden onto its citizens—whether through higher taxes, inflation, or reduced services.
But here's where the connection becomes critical: Your personal finances also need the same level of scrutiny. Just as we should elect candidates who are willing to audit the government's finances, each of us should be auditing our own. By understanding and cutting waste in your personal spending, you can:
Increase your savings for the future.
Prepare for unforeseen expenses or economic downturns.
Limit your dependency on government assistance as you approach retirement.
For example, consider how trimming unnecessary expenses in your household budget can allow you to divert funds toward long-term investments or retirement savings, ensuring that you’re not overly reliant on Social Security or other government programs in the future.
Conclusion
As the election approaches, remember: the best candidate isn’t necessarily the one promising to tax one group or another. Instead, look for leaders who are willing to treat the country like a business—one that needs efficiency, not just more revenue. Who gets your vote to start fixing this very nuanced spending challenge?
Here’s a simplified example of America’s issue - Imagine you have a “friend” who:
Owes you close to $36,000 and has promised to repay it…in 30 years (similar to the U.S. national debt).
Accrues $2,000 annually in interest, (mirroring government interest payments).
Each year, this “friend”
Earns $6,000 in income from charging you for goods and services. (like the tax revenue collected by the U.S. government).
Pays $2,000 on interest payments, leaving only $4,000 to cover their annual living expenses.
Spends about $6,500 to $7,000 in living expenses, despite only have $4,000 to “live”
Borrows the extra $2,500–3,000 from you each year. This borrowing continues to grow the debt they owe you over time.
When that money runs out, your friend simply:
Asks you for more loans to cover their spending and interest, continually increasing the debt they owe.
How does this mirrors government spending?
The government borrows more to cover both existing and new expenses, widening the deficit each year. Small cuts, like “making coffee at home” or “canceling streaming,” only reduce a fraction of the overall debt.
While this scenario simplifies the complexities of fiscal policy, it still raises an important question: If this were your “friend,” and he told you you need to start paying more for his goods and services, wouldn’t you want to ask a few questions? Maybe something like, “Hey, where exactly is all this money I’m lending you going?” (Nice suit, by the way.)
Real solutions require a deep audit and strategic cuts—steps that could slow the debt’s growth, building financial stability for future generations. As information continues to flow, I feel more and more citizens are demanding accountability from our elected officials just as we must demand it from ourselves. By conducting a financial audit of your own, cutting out unnecessary expenses, and managing your resources wisely, you can ensure long-term security and independence from government support.
If you’re ready to start treating your finances like the business they are, we’re here to help. At BMG, we specialize in helping individuals and businesses audit their financial health, reduce inefficiencies, and plan for a prosperous future. Let us help you prepare so that, come retirement, you’re not just relying on Washington—you’re relying on your own smart financial decisions.
