Editorial #2 for WJAG July 15, 2017
Reasons Businesses and Governments Fail
The main reason businesses fail is the same reason we have a failing government. Government, like all businesses, must follow fundamental rules of economics. Following these rules made this country’s businesses the most successful economic power in the world, in spite of the unfriendly business tax climate in this country.
The most common reason businesses fail is: they do not know what business they are in. Restaurants are not in the food business, they are in the liquor business. Car dealers are in the parts and service business. Sam’s Club is in the business of sell memberships and farmers are actually in the real estate business. The function of a business is to make sure they always know and maintain their base, they can depend to survive, always.
Government is in the business of investing (not spending) tax dollars to make sure they can continue to do the three things they are pledged to do for their citizens: 1. Provide infrastructure 2. Security and 3. Make laws that allow commerce to be sustainable. Taxes must be invested to reduce future expenditures in providing these three functions. Taxes can NOT to be spent to “buy” votes with “give away” programs.
Until politicians learn the difference between spending and investing the dysfunctionality of this country’s management will never end. Insanity is doing the same thing over and over and expecting different results. Thinking “business as usual” in our government will fix our country’s problems, is insanity. This is why government must have politician who know they are managers, not leaders, and must learn to run government like a business.
This is Keith Kube wishing you the best in making the world a better place.