I have seen this mistake made hundreds of times in the business world and the Obama Administration is falling into the same trap. Whenever a new manager or administration takes over a business or the White House, they impatiently try to push their agenda without first understanding their current budget. For example, when I was chartered to take over a lab for a new business, before I spent any money on new equipment I would figure out what I had first. I would first clean the lab and inventory all equipment that currently exists in the lab. Next, I would calibrate and make sure all the equipment is in working order. At this time, I now know what new equipment I need and would place a purchase order. Many managers and leaders do not follow these simple actions before trying to implement their agenda. I have seen corporate managers waste money by buying redundant equipment. I have seen managers make changes that worked for a previous business model, but would not work for the business model of the new organization they are tasked to manage. These are common mistakes and they can be costly and devastating. If only corporate and political leaders would set their vast egos aside and display some patience they may be able to make proper decisions.The Obama Administration is no different. Take for example the billions of new spending they have proposed or introduced for education. Today, the United States already pays more tax dollars per student than any other country in the world. However, Obama has already pushed for more educational spending without understanding current educational expenses. Obama has said time and time again he would cut wasteful spending, but he has done no such thing. This should be the first step he should be doing before proposing additional and more than likely redundant spending. I do not understand this. If Obama and his team were prudent they may be able to cut educational programs that do not work and reallocate the money to do what his administration wants to accomplish without introducing additional taxpayer dollars. The Obama administration is arrogant and would fail business 101 because they are simply rushing into affairs and wasting money.
The problem with the government is they are not spending their own money, they are spending our money. That is the main problem and why the government is so wasteful. Most people that rent an apartment or car do not treat these items as they would if they owned them. That is the problem with the government; they do not care about wasting money and continue to practice the concept that a problem will be resolved by throwing money at it.
Obama claimed during one of his press conferences he does not act unless he understands the problem and knows what he is saying. If that is true, he would not be in such a hurry to spend record levels of taxpayer money without first understanding how current money is being spent or allocated. This is fiscally irresponsible behavior. Now the Obama administration wants more control over Wall Street and the financial sector. This is the “pot calling the kettle black” and completely hypocritical. Now we have a completely fiscally irresponsible government that wants to take over the financial industry. Now that is an oxymoron if there ever was one.
All of this aside, an astute businessman would not continue to spend money they did not have and increase their debt to astronomical levels. This is simple commonsense in the business world. However, the government and the Obama Administration continues to deficit spend like it is no big deal.
Blog Site: http://patrickbohan.blogtownhall.com/
Book: Is America Dying? (Amazon and Barnes and Noble)