Financial Responsibility

financeEvery family, every American has needed to cinch their belt, cut costs, watch their pennies.

In his weekly radio address, President Obama said that at a Cabinet meeting on Monday, he’ll ask each of his agency heads to scale back. Every department will be expected to produce specific proposals for budget cuts.  “In the coming weeks, I will be announcing the elimination of dozens of government programs shown to be wasteful or ineffective,” he said. “In this effort, there will be no sacred cows and no pet projects.”

All across America, families are making hard choices, and it’s time their government did the same,” Obama said.

What do you think?  Is this rhetoric?  Can government agencies tighten their belts?  Will government spending be wiser, will they cut waste and be more responsible?



Filed under Economics, Obama, The Economy

5 responses to “Financial Responsibility

  1. I’m anxious to hear what President Obama and his cabinet decide are starting places at tomorrow’s cabinet meeting. It won’t be easy! Nothing in his job is easy, and he was left with challenges most presidents haven’t had to face, but he isn’t slacking off! Government spending won’t change unless forced, and this is another move to a healthier country.

  2. tosmarttobegop

    The government needs to adopt the same bargaining policy as Wal-Mart who goes to suppliers and points out the volume of their product they would be buying. Than demanding a certain price or the Government will look elsewhere. Another practice that is costly is the “if you do not use all you said you needed for this month. Then next month you allotment is cut the same amount you did not use last month”.
    This causes waste, if you notice that toward the end of the month Air Force and Air guard units suddenly step up the flights out of the base. It is because they need to burn up the fuel allotment for that month.

    The Government owns and each year sets aside money to maintain U.S. Government properties that are no longer used by the Government. But will not sell them or use them for other reasons. the list of what can be changed and stopped goes on.

  3. You make too much sense, tstb!

    For a short time a few years ago I worked at a local state university. When the budget year was nearing an end there was a push to spend all the money allocated for the current year so they wouldn’t face a budget cut for next year. This rush to spend made no sense! The money was spent willynilly and frivolously just to make sure it was spent!

    Drove me nuts! Also drove me back to the safety of retirement.

  4. What needs to happen, of course, is a change in the way governmental budgeting is handled. Instead of being rewarded for efficiency, the department is punished, it being the “theory” that too much money was budgeted to the department in the first instance.

    An example of spending at the end of the budget year from 32 years ago: during my last year in the USAF, the reserve unit that occupied the building on the base where I was stationed found they had a surplus in their supply budget. Knowing that they needed the budgeted increase for the next fiscal year, it became imperative to spend the “surplus” funds (the surplus being less than the increase that was going to be needed) before the end of the budget years.

    So, on June 29 of said year, here comes the supply folks with brand new IBM Selectric IIIs for every office in the building, replacing all existing reserve unit typewriters, notwithstanding the fact that in the case of several of the offices, the typewriter being replaced had just been acquired within 90 days prior, having been obtained through the normal requisition and supply process. The “replaced” typewriters, of course, were to be sold as surplus. Ah, waste; what would we do without ye?

  5. lilacluvr

    I’m anxious to hear what Obama and his Cabinet comes up with this week.

    But, if I remember correctly, weren’t the Republicans just teabagging last week about all that wasteful spending?

    As a side note, my husband and I were in health care management and the corporate thinking for their annual budgets went like this:

    They projected to make so much profit. If they did not reach that specific amount, then they considered they had a loss for that year – even though they might have made several million dollars on each facility.

    And, yes, they did the exact same thing as you had all expressed above – if you did not use your entire budget, then the next year’s budget would be slashed. So, of course, the facilities went out and spent down to the last penny.

    Ahhh….the corporate world… I do NOT miss it.