Bankruptcy Stares the U.S. on the Face
November 11 2023 By Abiodun Kareem Giwa
President Joseph Biden
Is North Korea financially broke and cutting expenditures? It is a question that resonates following a Fox News report that the hermit state is cutting back on diplomatic missions. However, there is no way to ascertain the cause of the cuts other than speculations that the country may be experiencing hard times amid a rise in poverty. North Korea is not alone in the economic struggle for survival. The United States also suffers a credit downgrade from stable to negative. Moody has slapped the U.S. for deficits and declining debt affordability.
Managing a budget and otherwise is the underpinning issue here. Is it wrong for a country to cut back on expenditures it cannot afford? Is deficit a good part of financial management? Is it economically wise to spend more than one's income? What causes bankruptcy, and what lessons do we teach individuals to avoid financial failure? Does the importance of budgeting no longer apply? Why do we expect ordinary people to embrace what is deemed a sensible instrument in financial management, and why does the government do the opposite?
The Budgeting System is a famous financial principle encompassing discussions on revenue, expenditure, and the development of the budgetary system as an instrument for accountability. Has humanity reached a stage where governments hold the people accountable, but the former evade responsibility? The government collects money through taxation but no longer shows the people why the collection is compelling with sensible management of finances. Let us consider the nonprofit management's fundraising techniques and how they convince supporters or donors for future contributions.
Like the government and other businesses, the nonprofit collects money from donors for its programs and projects. It expects continued support occasionally but must show supporters how it spends its money to achieve this objective. Public administrators also showcase what the government is doing to justify continued taxation. The problem with governance at the top level is the ballooning of the deficit, which administrators know very well can lead to bankruptcy. They know uncountable individuals and businesses that have become bankrupt from a lack of budgetary discipline. And they teach others to avoid the danger.
Ballooning deficit is like cancer to individuals and private and public organizations. Many countries suffer from economic death due to a lack of sense to manage their budget. Maintaining embassies abroad at the expense of the poor people's survival at home is not a good idea. It should not worry anyone that North Korea is cutting embassies. It makes economic sense if it can no longer afford the maintenance. But it should worry observers how the U.S. is managing its budget, resulting in a ballooning deficit, already a cause of disagreement between the House and the White House.
But the White House does not seem to care. The country is over 30 trillion in deficit. $106 billion is planned for Ukraine and Israel to fight their wars. But the House chose to approve $14 billion for Israel, leaving out Ukraine. But the Democrats in the Senate say the House bill is going nowhere without money for Ukraine. And the president vows to veto the House bill. Observers say let Israel and Ukraine foot the bill for their wars amid Fitch and Moody's simultaneous downgrade of the U.S. credit rating.
Shouldn't this development be a worry to administrators that there is a need to balance the budget to avoid eventual bankruptcy? What would the leaders say if America suddenly goes bankrupt? Although still to be declared insolvent, many observers believe it is on the way toward the danger with an astronomical deficit.
Managing a budget and otherwise is the underpinning issue here. Is it wrong for a country to cut back on expenditures it cannot afford? Is deficit a good part of financial management? Is it economically wise to spend more than one's income? What causes bankruptcy, and what lessons do we teach individuals to avoid financial failure? Does the importance of budgeting no longer apply? Why do we expect ordinary people to embrace what is deemed a sensible instrument in financial management, and why does the government do the opposite?
The Budgeting System is a famous financial principle encompassing discussions on revenue, expenditure, and the development of the budgetary system as an instrument for accountability. Has humanity reached a stage where governments hold the people accountable, but the former evade responsibility? The government collects money through taxation but no longer shows the people why the collection is compelling with sensible management of finances. Let us consider the nonprofit management's fundraising techniques and how they convince supporters or donors for future contributions.
Like the government and other businesses, the nonprofit collects money from donors for its programs and projects. It expects continued support occasionally but must show supporters how it spends its money to achieve this objective. Public administrators also showcase what the government is doing to justify continued taxation. The problem with governance at the top level is the ballooning of the deficit, which administrators know very well can lead to bankruptcy. They know uncountable individuals and businesses that have become bankrupt from a lack of budgetary discipline. And they teach others to avoid the danger.
Ballooning deficit is like cancer to individuals and private and public organizations. Many countries suffer from economic death due to a lack of sense to manage their budget. Maintaining embassies abroad at the expense of the poor people's survival at home is not a good idea. It should not worry anyone that North Korea is cutting embassies. It makes economic sense if it can no longer afford the maintenance. But it should worry observers how the U.S. is managing its budget, resulting in a ballooning deficit, already a cause of disagreement between the House and the White House.
But the White House does not seem to care. The country is over 30 trillion in deficit. $106 billion is planned for Ukraine and Israel to fight their wars. But the House chose to approve $14 billion for Israel, leaving out Ukraine. But the Democrats in the Senate say the House bill is going nowhere without money for Ukraine. And the president vows to veto the House bill. Observers say let Israel and Ukraine foot the bill for their wars amid Fitch and Moody's simultaneous downgrade of the U.S. credit rating.
Shouldn't this development be a worry to administrators that there is a need to balance the budget to avoid eventual bankruptcy? What would the leaders say if America suddenly goes bankrupt? Although still to be declared insolvent, many observers believe it is on the way toward the danger with an astronomical deficit.
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