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thoughts that come
out of our minds

If you ran your business like the government

3/17/2017

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The equal and opposite reactions of revenue, spending, and borrowing

This is either the perfect operation or else it’s a massive scam.

The organization in question keeps lowering its prices, but it also reduces the number of services it offers. Yet, to pay for things it wants to provide that nobody actually wants to buy, it raises its borrowing to cover the cost. That, of course, increases its operating expenses, but the executives never factor that in. 
​

It trims the amount it spends on labor by laying people off, then it cuts the departmental budget because there’s insufficient staff and no automation to replace them. This is in spite of vocal marketplace demand. Yet for some of the organization’s operations, the money that’s not being spent in one place gets shifted to another. Unfortunately, the department receiving those funds provides a product that consumers can’t purchase. It’s strictly B2B.

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