Originally Posted by njbchbum

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?