Rep and Dem were independently wealthy and headed a corporation that employed 50 partners, and a myriad of additional employees. In addition to providing employment for their partners, the corporation’s responsibilities included providing for all employees’ education, healthcare, safety, retirement, and general well being.
Neither Rep nor Dem was concerned about spending due to their gigantic trust funds and extravagant corporate income. Everyone gloried in their success, security, and enjoyed the superb benefits of living comfortable lives in large suburban estates. Their corporation was the envy of sister corporations. Their holdings were vast…they owned thousands of office buildings, fleets of vehicles, airplanes, and ships, and seemed to have an unlimited supply of other assets. Though they received hundreds of billions in annual revenue, they had several weaknesses including: an out of control spending problem, a bad habit of borrowing astronomical amounts of money, a cash-flowing into the corporation problem, and had accumulated neither normal operating expenses nor rainy day funds for future contingencies.
Though weakened severely, they still enjoyed an incessant stream of income that allowed the corporation to live life large. Department heads spent lavishly on big ticket items like additional office buildings, bases, hospitals, airports, new machinery for the corporation, shipyards and new craft for their fleets, spacecraft, computers, big screen TVs, the latest laptops, tons of new furniture, and often indulged in extravagant company-wide picnics, outings, and vacations.
One day Rep and Dem received the surprise of their lives when their trust fund managers informed them that they were quickly running out of funds. Both loved their jobs and had planned on long careers heading up the corporation. However, due to the severe economic downturn, increased healthcare and retirement costs, the lack of new clients, the fact that their funds were nearing exhaustion, and jobs migrating overseas, Rep and Dem realized that their corporation was in danger of toppling, falling into serious disrepair, or even the unthinkable…bankruptcy. Heavily invested in employee retirement accounts, the board of directors lent the funds to the corporation to spend on corporate needs and private personal projects. They also approved massive borrowing programs from sister corporations to insure that the lifestyle they were accustomed to could continue.
Suddenly the corporation was confronted with the shocking reality of a massive reduction in revenue while corporate debt continued to grow exponentially. Several partners recounted stories of two corporations that faced bankruptcy a few years earlier. One had survived and the other had failed. The survivor had implemented the changes of a Back To Basics plan, while the failed corporation maintained a Business As Usual plan.
Back To Basics Plan
1. Froze all spending and instituted immediate budget cuts of 10% for all departments
2. Severely limited further growth of the corporation
4. Returned to the pay-as-you-go system
5. Ceased borrowing money from all creditors
5. Incentivized owners of small businesses to create jobs by providing tax cuts and other positive incentives
6. Reduced prices for all
7. Sold many of their large office buildings and other assets
8. Destroyed all their credit cards
9. Modeled sound financial principles for all its partners and other employees
10. Did everything in its power to enable the corporation to survive the terrible financial tragedy it had brought upon itself
Business As Usual Plan
1. Spent all the cash they had on hand
2. Added numerous new assets to their corporation
3. Borrowed as much money as possible from other corporations, and drastically raised prices, fees, and taxes to their friends, neighbors, fellow employees, and relatives
4. Raided employee retirement funds
5. Printed millions of $100 bills
6. Increased all departmental budgets by 10%
7. Purchased several car dealerships
8. Loaned many banks vast amounts of money
8. Handed out cash to anyone who had their hand out
9. Hired many crews to construct or remodel many office buildings, build lavish swimming pools, resurface parking lots, and provide lavish landscaping
10. Took lavish vacations and bankrolled brothers-in-law’s family vacations to the Super Bowl.
Americans are calling for a new approach to governance. While no one knows the plans our leaders will ultimately choose, most likely it will include some of the options listed above as well as many others. With that result in mind, please consider the following...
Government is God-given. "Everyone must submit himself to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God." Romans 13:1
Government is not perfect. Since government is made up of imperfect people it is not perfect.
Government is not God, and therefore cannot provide all answers for all problems.
Governing leaders deserve our honest and sincerest prayers.
Governing leaders owe God and their fellow countrymen a just, honest, and fair approach that is both above reproach and that governs impartially. Your future retirement, finances, economic well being, career, and other aspects of your life will be impacted by decisions and policies being enacted now and in the future. Pray that our leaders make wise decisions.
Should America expect tough times in her future? Yes, but with God's help we will not only survive, we will live to see a better America in the future.