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Posts Tagged ‘Budget cuts’

A little Monty Python humor there,  but really – after months of listening to the variety of Republican candidates, Newt is beginning to grow on me.  If you really take the time to listen to his rational thinking, you might just find someone who really is making a lot, and I mean a lot of sense.  While he’s been a politician most of his life, he is talking business speak – AND he understands the underpinnings of what could truly work in DC.  He has spent the past 12 years in the private sector running 4 businesses and writing a book or two, and his time in congress gives him a clear understanding of how to get things accomplished.

If you have an hour and really want to learn about Gingrich – take the time to really listen (Heritage Foundation Speech).  His application of lean six sigma principles to government is exactly what the government needs – and needs big time. I’ve personally seen the concept of lean six-sigma in action, applied in both the back and front office.  Companies like Motorola, Toyota, Danaher, and others who subscribe to a similar culture have consistently been successful.  There is absolutely no reason why the concept of continuous improvement can not be applied to government.  As I commented in my post of Nov 7 (Budget Cuts), the government can and must look to do more with less.  Listen and learn about what Newt is prescribing. There are not just two options – cutting spending or raising taxes – that ideology is leading us down the tubes faster than the sinking Titanic.  It’s turned into a political nightmare that has polarized Washington DC.  I’m in complete agreement with everything Newt touches on in this discussion.  The super committee is an abomination of our democracy – 12 out of more than 500 are tasked with coming up with  a few trillion in cuts – so what are the other 488 doing – are they really representing their constituents as elected to do?  It’s time for fundamental change in Washington– and Newt’s formula is rational – it makes sense.  I’m quickly becoming a Newt fan!  Maybe a Gingrich/Romney ticket?

This is the time to learn about who we might be electing to office – take the time to hear this speech.

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The Super Committee is working on how to cut 1.2 trillion in spending over the next 10 years.  There is a group of 145 congressmen pushing for something closer to 4 trillion – what’s a few trillion among friends?  The one thing that gets me is it seems that quite often, when someone in Washington DC talks about cuts in the budget, they really mean we won’t increase it by as much as we wanted to.  OK, so I think I need to increase my budget say by, $50k, so maybe I should ask for $150k – just in case it gets the ax (or more appropriately, trimmed back).  I get cut back by , say 50% of what I asked – Great! I now have $25k more to spend that I really didn’t need in the first place!

This is absolutely crazy – and since we have a limited amount of true business savvy in the congress, or for that matter the White House, then our problems continue – with no end in sight.  It seems like with good intentions, a program is initiated to help a specific group of people – but with little effort to truly measure the effectiveness of the program.  After a number of years, it gets lost in the tons of programs added to our ever-growing government – and continues to get funded, and funded – without regard to any sane measurement of its effectiveness.  A program that is worth having, can always be made more efficient by employing continuous improvement techniques.  You CAN do MORE with LESS if you take the right approach and eliminate waste.

If we are to get serious about getting America back on track, to shut down the whining dribbles of the OWSers, to be the America we surly can be – it’s time for a radical change in three areas.  First, the government needs to stop adding ANY new program without an objective means test;  what is needed to be spent, and specifically, what will the return be – benefit to dollars spent.  Second, all programs currently in the budget, should be rolled back to 2001 levels and go through this means testing – any found below acceptable levels must be eliminated, or improved to meet an acceptable return.  Third – entitlements must be reformed dramatically – stop SS to anyone entering the job market for the first time.  Develop a plan to encourage savings though a wide range of investment programs or other financial instruments.  It is NOT the duty of the government to subsidize everyone’s retirement.  Implement changes to healthcare that will encourage innovation and competition.  Encourage a new national commitment to health and well-being and a preventative ideology.

On the revenue side – we’ll see revenue improvement just by getting government out-of-the-way – but there still needs to be tax reform.  Simplify the system, and make sure taxes are fair across the board. Encourage US business development by minimizing the tax burden on companies that generate significant US jobs.  Companies should be taxed based on their inefficiencies, based on their ratio of foreign to US payroll, based on their negative impacts to the environment.

My biggest fear is that the current administration is incapable of understanding the basic business principles that can get us back on track.  Obama lacks the critical skills required to provide the strong leadership that is needed to bring about the hard work to get the right things done.  Instead, he is running around the country, campaigning, encouraging the rioters (sorry, protesters) by his class warfare rhetoric, and at the same time, wasting a bunch of our money while he’s at it!

In order for America to regain its status as a nation leading the world in resource development, innovation, and entrepreneurship, government must shrink.  That’s all I have for now – more to come on this subject in the coming weeks!

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