Yes, the government does need to be run like a business.

 ALL ECONOMIC ENTERPRISES ARE BOUND BY THE SAME RULES

YOU CANNOT SPEND MORE THAN YOU HAVE

We hear all kinds of arguments about why the government cannot be run like a business, It is a rationalization to engage in irresponsible spending. The reality is that the United States has been engaging in such spending for over 50 years. Many believe that since we have engaged in these practices for this long, we can continue without any real consequences. We cannot, the world is changing by the day and the United States is losing control of its ability to juggle its fiscal mismanagement. A severe economic consequence is on the horizon and it may actually be too late to avoid it, the best that may be done is to manage it.

The U.S. is going to lose its dollar advantage in the near future, which will then restrain it from exporting its inflated dollars around the world. Fiscal responsibility will come, either by internal management or external reality. 

The biggest indicator of this crisis is the DEBT, and the deficit that is now near 1/3 of the national budget. The debt is a matter that cannot be solved in the near future, but the deficit is what needs to be addressed as soon as possible. The interest on the debt is soon to be the biggest item in the Federal budget, it will squeeze out all other spending. The reality is that the Federal government will, in one way or the other, very likely default on this debt.

To prolong what needs to be done to address this debt requires that the bleeding needs to be stopped as soon as possible. As in a household or business where expenses outway income the first thing to look for is unneeded spending. In a household it may be to cut out daily dunkin donuts and eating out. Or eliminating cable TV or other non essential spending. Painful but necessary. In a business it may be getting rid of the company car or eliminating a non profitable product or some other downsizing to bring the income and expenses into balance. 

The Federal Government has never engaged in a review to see what is essential to the functioning of the government. The first step for any financial enterprise is to stop the bleeding. Cut out those functions that are not essential for the functioning of the government. First, all frivolous endeavors, like free stuff for foreign countries and grants for dubious surveys and analysis. Then possible whole departments. Has the quality of education increased since the founding of the federal department of education, or has it resulted in added costs due to federal mandates that may exceed the money received from the government? These are all questions to be asked. And it is imperative that this happens quickly, not in years, because we do not have years to address these problems. If as a household you are spending 30% over your income every month, how long could you continue?

All departments must be reevaluated. Why does the U.S. have a defense budget 5 times the nearest country, Why does the U.S. have 750 military bases in almost every country in the world? Are they necessary to protect the interest of the citizens of this country? Why does the military have 44 4 star generals when in WW2, fighting with 10 times the personal in 2 theaters we had 7? We need to ask where all the money is going. After spending near 10 Trillion on foreign wars in the last 30 years, have these been in the best interest of the country?  

All that, just in an effort to balance expenses and income. 2 Trillion, out of a budget of 6 Trillion a year, needs to be accounted for. Cutting 2 Trillion will be very painful, somebody is going to need to re evaluate their future. Many would like to raise taxes 2 Trillion, again 2 Trillion will be taken out of the private sector to fund the public sector. It cannot just be taken from the so called rich. Again painful. 

The reality is, all government spending is on the expense side of the ledger. Wealth creation is generated by the private sector. The private sector pays for the public sector one way or another, either through taxes, debt or decreased buying power of the money, Inflation. It is not that complicated and does not require a PHD to see that government spending is where the problem lies and with less spending and regulation the private sector can be enabled to increase the revenue or wealth of the country.

I suspect that due to the political hysteria in the country, we will not address the economic problems and manage them, we will likely just wait for the real catastrophe to begin and then blame it on the opposition. It will allow everyone to feel better for a little while longer.