Does the Government HAVE Money-Limits?

@mythociate (13822)
Oklahoma City, Oklahoma
April 7, 2013 4:43pm CST
i.e. Am I right in thinking that they never start any budget-building with "How much do we have?" That they START with the question "What do we need to build-etc?" and THEN 'guesstimate' how much money they are going to have to 'grant themselves?' Wouldn't it be better if we could get them to 'start with what they have' & to then do what they can out of THAT?
6 responses
@burrito88 (2779)
• United States
8 Apr 13
What they start with is "How much did we spend last year?", then they ask for more. One of the problems with a bureaucracy is that everyone is allocated money and then seeks to spend what they are allocated to justify getting the same amount or more the following year. If you don't spend the money you are allocated, they cut your budget for the following year. We could use a system where we reward managers for NOT spending their complete budget allowance which would either leave us with unspent money or money that could be spent in areas where it really was necessary to go over budget.
• Redlands, California
9 Apr 13
That is 100 percent true. They have to make sure they spend every dime because if they don't the higher ups will be like, "well you made it work with this much last year so you can do it again." Which is stupid because things change from year to year and unexpected crisis's happen. I learned that in the military and everyone hated how that worked.
@mensab (4208)
• Philippines
7 Apr 13
ideally, all governments must have money limits. they can only print money based on their gold reserves. the value of the currency will depend on the amount of gold reserves the country has. and then, the spending of the country will have to be balanced by its revenues. if spending goes higher than revenues, then the country will have deficits or debts which can be guaranteed by future revenues.
@mythociate (13822)
• Oklahoma City, Oklahoma
30 Apr 13
How is it that America was taken OFF of the Gold-Standard decades-ago, that now our currency's 'standard' is "trust in 'the promises of the American people' (or something)"? I know that some President gets blamed for that, but in the end it's the fault of all the "free-will" Americans who 'bowed to his whip' & -who let the money fall. But gold-investors might be GLAD that 'the standard' is no longer gold! Money gradually becomes WORTHLESS as the price of 'stuff' (including gold) goes up! Sure, there was the recent DIVE in gold-value; but it's still STUFF (as opposed to 'money,' which is nothing but the lower-&-lower value people give it). Do you remember when "I've got a Dollar!" was an announcement of great power?
@AidaLily (1450)
• United States
7 Apr 13
I don't think any governments ever did that. I mean it is simple budget planning, but I am assuming (not saying this is fact) that most politicians regardless of where they are located have the "this isn't my money" thoughts. I mean the American government at least can vote their own pay raises which mean they get more taxpayer money. It basically becomes this "Well we have all this money, and I think we should spend it this way." type b.s.
@mythociate (13822)
• Oklahoma City, Oklahoma
30 Apr 13
You mean they judge 'what they should do' on "whether people want it done" rather than -on "whether they have enough money to do it?"
@lampar (7597)
• United States
11 Apr 13
If the law makers know that they have the privilege and authority of hiking tax rate on individual and corporation with no limit and raise the debt ceiling whenever they feel like it, there is no reason for them to spend on project and program that base on "what they have or how much they save in the treasury department?" except to spend till there is no tomorrow or continue the same habit till the end of time. If a private sector has the same power and privilege similar as a congress-like institution, then i am sure the private corporation will behave the same way like government where tax payer dollars are there for them to spend, not to save in order to woo the voters and its constituents.
@dark_joev (3043)
• United States
10 Apr 13
The Governments in the modern time have no limit on the amount of money they can create. Yes the Governments in most of the world actually create money by using either a Private Central bank or a department within the Government. So the United States for example has no limit on the amount of USD they can create with the Federal Reserve purchasing Bonds from the Treasury Department to create Federal Reserve Notes (USD). Their is literally no limit to them as 97% of USD doesn't exist in that it is all digital. The EU and the countries in the EuroZone don't have the ability talked about above. The issue with having a Central bank for multiple Countries is that the Currency is brought down by the weakest economies in the Zone. So those Governments can't print money as they need it so they then do have a hardcore limit to how much money they can spend. So I hope this answers your questions. The United States is what they call Monetarily Sovereign. The Government controls its own currency and it therefore has no limit on the amount it can create. The only limit would be the value being dropped by having to0 much money or not enough money in the market to keep the value up.
• Serbia
8 Apr 13
I think that if they started with what you are saying. It would make it harder on them to steal. And god forbid they forget or leave out a way to steal...