Spending and the Budget.

With the immediate Government shutdown crisis temporally averted, the question still remains... "How to balance the budget"?

Looking at a budget...

Using an overly simplified example... let's say you are unemployed and this is your budget. Is it balanced? Let's look...

On a per week basis...

Food = $20.00

Shelter = $100.00

Income = $50.00 (from unemployment insurance)

So how does your budget look? Not good - right? Your expenses are greater than Income, so to balance either get more income or reduce expenses. SIMPLE - Yes? In your case if you cannot increase your income (remember you are unemployed), then you must reduce your expenses. So you either move out into the street, or quit eating. Actually to only quit eating does not work as you still do not have enough money for Shelter. (Sure you can always "borrow" some money if you can find some sucker that will loan you money, but that just increases your expense without increasing your income. DUMB!)

Well, I presume that Government is no different, so to balance, reduce expense or get more income, or borrow. DUMB!

Problem with the Government is that to reduce expense, probably results in putting people out of work, and increasing revenue means increasing tax. Neither of which us "commoners" like and or want. (Or borrow. DUMB) Right?

So, how to fix? Well sometimes it is better to just start all over. Just like I mentioned previously with the game of Monopoly. Once the game is over (one person owns everything) then you just start a new game by divvying up all the money, and the new game begins.

Now if we want to start all over with the government (translated all of us) then how to divvy up.

If you believe how the moneys are divided up today, then let's start with that premise, which is... 2% of the population own 98% of the wealth (money). This also means that 98% of the population own only 2% of the wealth (money). Obviously this gives us two classes of people, the "wealthy" and the "Not so wealthy".

That being the case, then exactly how much money do we need to "start all over".

 OK... let's make some assumptions (ASS-U-ME). Let's keep the 2%/98% ratio, and let's say that the population of good old USA is 300,000,000 (300 million). Now then, just exactly how big a pile of money do we need in order to divide up among all the 300 million? Well for that we will make one more assumption. Let's take the "not so wealthy" group. Based on today's "costs", and looking at all the available data it appears that an annual income of around $51,000 ($51 thousand) is necessary.

So, doing the math, you will see that you need roughly $750,000,000,000,000 ($750 trillion) TOTAL to start the game. (Roughly $51 thousand for each the "not so wealthy" and roughly $122 million for each of the "Wealthy") As you can see, this is a pretty big pile of money, and perhaps also explains why the government has such a huge problem today. There simply is not enough money to go around.

But whats the problem here? Well it's the 2%/98% ratio. By giving the wealthy 98% of the pile, then there must be a HUGE pile to begin with.

$750 trillion seems a bit much, would you agree? So how can we reduce it? Well it is quite simple. All we have to do is change the ratio between the "Wealthy" and the "Not so wealthy".

Let's try it.

Let's change the ratio to 5% "Wealthy" and 95% "Not so wealthy". Let's keep the same annual income around $51 thousand, for the "Not so wealthy", and now doing the math you will see that we only need a $291,000,000,000,000 ($291 trillion) pile of money. Granted, this is still a huge pile of money but is a huge 60% reduction. (PS... this still leaves $18 million for each of the wealthy)

Let's take it a bit further.

Let's change the ratio to 10% "Wealthy" and 90% "Not so wealthy", and we see that now we only need a $138,000,000,000,000 ($138 trillion) pile of money to begin with, which amounts to an 81% reduction from the original $750 trillion. (PS... this only leaves roughly $4 million for each of the "Wealthy", but that should be adequate)

Now obviously the larger pile of money to begin with may have the effect of diluting the total value, so it would seem that a smaller pile to begin with should result in greater value.

So for the greater good, we would want to have the smaller pile of $138 trillion, not the bigger pile of $750 trillion.

So with my scheme all we have to do is reduce the ratio between the "Wealthy" and the "Not so wealthy".

Heck, if we were able to just divide things up equally...- 50% for the "Wealthy" and 50% for the "Not so wealthy", all we would need is a $15 trillion pile of money. In this case a WHOPPING 98% reduction. (Of course both the "Wealthy" and "Not so wealthy" would both have the same $51 thousand income, so you can see that that would not fly)

So, there you have it, all that is necessary to start over is to decide on the ratio of "Wealthy" vs. "Not so Wealthy", and determine the annual salary for the "Not so wealthy" and the math will tell you how big a pile of money you will need to get things started.

Now... you might also notice that if you do NOT want to start over but do want to reduce the pile of money, like might be the case to make the amount of money the Government currently has to work with, then all that's necessary is to change the ratio between the "Wealthy" and "Not so Wealthy". Since the "Not so wealthy" don't have much in the first place then this can only be accomplished by the "Wealthy" giving us some of theirs. Maybe not to good for them, but as someone once said, this is a government for all the people.

Hopefully some Congressmen will see my Blog, and see how beneficial the concept may be, or at least as beneficial as some of the proposals being tossed around in Congress these days.

Someone once said "Spread the wealth", and someone else said "Happy days are here again"...

Just Say'n