Quote:
Originally Posted by KatzPajamas
Having worked closely with budgets in both private and public sectors, I know a few things to be true.
Private sector rarely fails to meet budget. It is constantly monitored and adjustments are made quickly and efficiently... a stitch in time saves nine.
Public sector is much more relaxed...que sera sera! When the need to cut back is recognized, it has gone on far too long. However, the reaction is most often, to look to the state-the source of funding-to fix the problem.
Go back and read RichieLion's post again.
Why and how does the United States Postal Service continue to lose money and yet remain open?
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katzpajamas -
well, my limited knowledge of budgeting sees that the private sector meets its budget because it can quickly and efficiently raise the price for their product. but in the private sector, there will come a point where the public will no longer pay the price for the product and the private employer can reduce the quality/quantity of their product; or it can adjust quickly and efficiently and reduce their operating costs, usually through staff reductions. in the case of the latter, the govt will then pick up the increased cost to support the unemployed worker...and the private sector corporate leader will still be employed.
well, the govt never anticipated the need to support those unemployed private sector workers, so where will the money to do that come from. the govt will have to increase their revenue sources by raising taxes, fees, fines, penalties, etc. since the govt has no product to sell. the government parties who choose to raise their "prices" risk not being the government come the next election!
if you have been following politics of late, can you point to anyone in the public sector who is relaxed about the economy?