Quote:
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?
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Adjusting price isn't that easy. Out price your product and no one buys. There are still ethical companies who won't stoop to price gouging.
Unemployment? Unemployment insurance premiums are paid for by the employer. 99% of the time, their employees will never collect. (present state of the economy due to bailouts and other ridiculous WH BS not included)
Bailouts? These should have never happened in the first place. Why did the government bail out these big companies in the first place. Without bailouts, the CEO's would have had to make some major adjustments in order to keep their business afloat. But if Uncle Sam is willing to pay the price to guarantee their bonus, hey whatever. These guys didn't get to the top without some brains on how to get ahead. As for the housing bubble, that was created by government! Dems wanted everyone to have a home and banks were pressured into giving loans to extremely risky clients! It was all set up to happen this way so government can step in and save the day...aka gain more power.
Who in the public sector is relaxed? Define relaxed...need to know because I know a few private sector companies who are doing just fine. They are smart enough to keep their finger on the pulse of their company and make necessary minor adjustments, thus avoiding drastic major ones, do more with less...
1-
http://www.nytimes.com/2010/11/24/bu...my/24econ.html
2-
http://money.cnn.com/magazines/fortu...011/employers/
3-
http://finance.yahoo.com/q/is?s=ups