Showing posts with label budgets. Show all posts
Showing posts with label budgets. Show all posts

Wednesday, February 13, 2013

Tax Increases - A New Episode of Hoarders

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"Government decision makers are hoarders"
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Federal and Provincial budgets are a complex and convoluted mechanism. So much so that we, without having Ph.D’s in Economics and/or Political Science are at the mercy of the political spin doctors and the press to see what the impact of new budgets will have on us.

As with any complex issue, lack of understanding leaves us helpless to comprehend what the real causes and effects of the messages may be. At this time, we are being prepared for increases in income taxes, sales taxes, user fees as well as new methods of taxation such as health care user fees and highway tolls.

All of these messages are being delivered hand in hand with the announcements of uncontrolled deficits, and potential reductions of services.

How about we find something to consider that might be easier to wrap our heads around. There is a rather successful television series that I confess I seem to be drawn into. The program is called “Hoarders”. A simple premise for a reality program actually. The producers seek out home owners, with the mental disorder of hoarding – filling their homes to extreme with collectables, useless items, garbage, and outdated junk. Their homes are filled to the ceilings, often impassable and dangerous.

Even with their homes filled near to collapse, many of the hoarders continue to acquire junk, to the point of bankruptcy, borrowing money to fill rented storage buildings. Even leaving a house filled with their clutter to rent a new home just to fill that as well.

A professional therapist and assistants enter the scene to attempt to change the hoarders ways. To stop buying, stop spending and clear out the mountains of expired belongings. Inevitably the hoarder fights vigorously to keep their excesses as seeing them all so important, and even on occasion continues to spend as the effort to clean out is in progress.

This is a frustrating show to watch, as a layman, even we can see that they need to stop acquiring junk, and the belongings they have serve no purpose other than take up space in their home. But it is not a complicated program to watch, nor solve their problem.. Clean the house, and stop buying junk, and for gods sake, don’t rent a storage unit and fill that also.

Back to the point - Federal and Provincial Budgets, and tax increases. Now it is much easier to understand. Our government decision makers are hoarders. It is that simple. We have an infrastructure filled to overflowing with waste, with duplication of services, with inefficiencies, with million dollar useless bureaucracy, uncontrolled spending on non necessary acquisitions. But they (our government) are unwilling to clean up this mess, this hoard of waste. Instead, they continue to spend - to near bankruptcy levels, like our friends in the television program. But unlike our friends with a finite amount of spending money, than can result in bankruptcy, our hoarding government continues to go to the bank for more money. But alas.. Taxpayers are their bank.

I wonder, if the therapists on the program, who are often successful in curbing hoarder’s behaviour  could come to the governments front door, ring the bell, squeeze inside past the millions and millions of dollars wasted daily within our government, and have an intervention. Have a nice sit down with the government, and (as they do on the show) have the hoarder, our government, sit on a chair, and look at, item by item and ask, is this expense needed, are these bureaucrats needed, is this new office lease needed, do we need to have two hundred employees doing a job that twenty-five could.. And start throwing out the trash. Part of the therapy would also require that they learn, not to continue to spend and add to the useless clutter, because although the government can’t go bankrupt – their bank sure can (the taxpayers)

Thursday, April 12, 2012

Public Service Job Cuts Don't need to hurt.. but they do!

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"Making cuts to service is the simplest, quickest methods to reduce spending, while protecting the inefficient monolithic internal infrastructure..." 
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Federal and Provincial Budgets have taken their toll, and are resulting in a large number of job cuts. For each individual affected, I am sure that this is a terrible life changing situation. But I need to step back from the personal effects of this, to consider the approach the government takes.

But first, let’s look at how the private sector deals with difficult financial times. Much like the government, layoffs are inevitable, cutbacks on spending and a halt to business projects that are not mission critical. But there is a fundamental difference between Private Sector and Government: Customer service.

It would be business suicide to reduce the level of service that they provide to their clients, in fact, when businesses are suffering, there is an increased commitment to not only maintain but improve the treatment of their customers. To save a struggling business, they must grow their client base, to offset reduced profitability, and at the very least maintain the customer base by offering premium service.

Now, back to the government, when job losses are pending, the very first message delivered, if for us (the customer) to expect reductions in service. Longer waits for services, complete elimination of services, as well, increased (taxes) cost to we the customers.

It is acceptable to us as citizens to endure these service reductions, as it is explained to us via the media, that in order to “balance the books” we all have to feel the pain. We are programmed to take the medicine. Certainly the Government opposition makes waves of these cuts, but they argue that the funding to programs should not fall victim.. But I have yet to see the opposition take a stand, accepting that there are only so many dollars to go around, but to protest the fact that regardless of the financial reality of required cuts, the onus on the government is to find ways to increase service to their clients (voters) with less money.

So how is it possible for the government not to reduce services and still cut spending? It is simply an engrained perception that has been built on for years. Less money, less service. I refer you to several paragraphs above; pointing out that private sector does this daily. An enterprise with eroding margins, finds efficiencies, improved processes, restructuring, but NEVER, NEVER, cut the quality of service to their clients. Any company that has tried this, is no longer in business, or is being devoured by their competition.

So my question, is why do we so willingly accept our government offering us less, and less, as the use the excuse that budgets are cut, when we deal on a daily basis with Corporation facing the same pressure fighting to keep us happy and continuing to improve our experience dealing with them.

So, it is NOT impossible to balance the government books, and not have to wait longer, suffer program cuts, and accept a decrease in service. Making cuts to service is the simplest, quickest methods to reduce spending, while protecting the inefficient monolithic internal infrastructure. And besides we as citizens accept it quite willingly. Oddly enough, if our home internet provider, doubled their rates, slowed access speeds down, and only allowed internet access a few hours each day, and offered no support, we would not blink an eye in complaining, and quickly switching carriers.