1. The issue : Government Spending With the physical deficit looming, the government has been increasingly criticized for the way it spends and handles the money it takes from citizen in the form of taxes as well as that which it earns. Why does the government have such a large and growing deficit. Simplistically it borrows money to pay for its spending. Many people consider it a management issue because it should simply be able to live within the amount of money it takes. Here we explore the idea and solutions to government spending.

2. 1. Government Currency. Here we explore how the government pays for business, the method of collecting. The typical method is Taxation and to a smaller extent fees and profits.Collecting money from the people the government governs in order to pay for services it renders. The government could simply commandeer people to do what it needs as required.While it could be considered a citizens duty to what it’s country needs, most would consider this to be unfair because it would place an uneven demandonthose that the government selects. Causing some citizens to live with an uneven weight and even preventing them from living normal healthy lives. The government could acquire natural resources and pay with themSeveral private companies currently acquire land rights and mine/drill/gather resources selling them on the free market. Such a method would cause problems for such companies. The government could acquire and spend precious metals/gems This would be similar to the natural resources option, except the resources would be limited to precious materials. The government could disassemble those that need government assistance selling their organsWhile most would probably object it is possible to liquidate organs for profits to fund things. The question would be if the government could make enough monies from this. The government could simply print/mint money and spend it.Money is a product designed to be utilized within the system it is printed. Printing things like specific currencies for the super-rich could allow it to differentiate its spending. It is a bit difficult to understand how money would determine its value with this method. The government could spend only credit and laurels This would seem to be difficult since people might be confused on when they can expect to be paid for debt arrangements made. The government could demand that exchange rates be set at high rates Here the government could collect from all non-US citizens who try to exchange other currencies. They could also sell US minted/printed monies to other countries in order to fund operations The government could run everything like a business and collect no taxes This would require profiteering in all departments. While this could work in places like the post office. Many people might object to the military and its new ‘mercs for hire’ as the most profitable new department.

3. 2. Government Budgeting. Here we explore how the government manages the spending, what it spend on. The typical method is whatever passed as a spending measure.If there is not enough monies from taxation the government borrows and sells bonds. The government could spend based on performance.Agencies and employees would be paid when they do well and are productive while pay would be reduced when they do not do well. The government could spend all the monies into education, research and other futuresSpending monies here to help ensure the future and hope for a solution to this problem later. The objection might be that other infrastructure would dilapidate. The government could cut all foreign aid While this would help balance the budget it might limit USinfluence. The rest of the world might view it as a lack of care for those that are really really poor. At the same time it probably would not solve our spending issue. The government could be restricted to spend only what it brings inThis would typically be viewed as an unnecessary restriction, yet plausible if it cannot be managed. The government could be restricted to always spend less than it brings in for securitiesAgain, this would typically be viewed as an unnecessary restriction. The government could be restricted to always spend more than it brings in This would not really solve the problem of overspending, yet might be fun for a short while. The government could spend on only strategic plans and operations This would be useful for the future, every operation would be progressive and only be funded if they had a strategic plot. This might find some operations dilapidating The government could spend strictly on people and welfare This would show a very caring side (possibly a bit of lazification). The government could spend strictly on infrastructure This would lack social services and might find some people unable to return to usefulness.

4. 2. Government Budgeting…continued Here we explore how the government manages the spending, what it spend on. The typical method is whatever passed as a spending measure.If there is not enough monies from taxation the government borrows and sells bonds. The government could place restrictions on various assistance and welfare programs.This would encourage people to get jobs while some may complain about being unable to get what they need to return to usefulness The government could spend only on things private citizens can doThis would be considered by some to be defeating the purpose of government spending, yet it could be done. The government could spend only on things private citizens cannot do. To some this is the purpose of government, yet at time it not that the citizen cannot do it but rather that it should not be done by citizens or rather requires the ‘chain of command’ The government could place high tariffs on foreign goodsBasically, attempt to force companies to return manufacturing operations to within the country while making monies to pay for the budget from trade. While this may seem good at first glance, the USA sells a lot of goods to the rest of the world and such relations would suffer. The government could be forced to evaluate every project, division and aid plan This basically would be a preventative measure attempting to limit the damage that can be done by ‘bad investments’, yet may increase paperwork. The government can reward operations, plans and projects for increasing effectiveness while reducing cost by increasing funding This basically is the carrot and stick. If any division or operation finds new ways it improve effectiveness while reducing cost they can get more monies. This could increase spending, yet would promote effective operation. This may not be as useful for projects were an increase in budget was not on the table.

5. 3. Government Spending abstract ideas Here we explore some overview out-of-the-box ideas. • Government spending is whatever our leaders make it and that is really what it has always been. • Government spending has ‘ballooned’ simply because government borrowing is available anytime • Do we even really need to monitor this idea? • Why don’t the politicians represent the public sentiment and simply cut/limit it? Not passing spending increases. • The real fear here is that it will get out of control and future administrations will collapse due to our negligence. • Doesn’t the USA simply want to be the nation that is paying its debts rather than the borrower? • How much can the USA borrow and isn’t that up to the bank? Who is the ‘bank’ here? • The US bond market is primarily owned by US owners so we basically own ourselves. • Is it possible in the future for US debt to be primarily owned by another country such as China? What then? • How much interest do we really want to pay? Isn’t that the REAL issue? • Doesn’t it seem incompetent for the US to repeatedly spend more money than it has? (management) • Isn’t this about our future? A future where our children can pay large quantities of interest rather than on governmental services? Something we have an opportunity to stop here before it gets out of hand?

6. Six Hats: White Hat: Debt clock, in the end of the 90s President Clinton made a record payback toward the debt, in the 13 years that followed the debt has ‘ballooned’ giving us a taste of what could happen. The National Debt has continued to increase an average of $3.82 billion per day since September 28, 2007!http://www.brillig.com/debt_clock/ Most of the debt is owned by US citizens, yet could fall into foreign hands. Red Hat: What enterprise can operate beyond its means for so long and not collapse? Being in debt in large quantities is undesirable thereby general going against my basic instincts. Isn’t it all simply a numbers game? Government sells debt to Americans who complain about owing themselves. Black Hat: The purpose of government is to collect taxes and provide citizens with services what happens when it has to collect simply to pay interest on debt rather than services? What happens when Financial institutions decide it is time to fear owning American debt? Accountants perspectives may say it seems irresponsible to operate beyond our income level. What then? Could this lead to the collapse of the great empire of the USA? Our children may look at us poorly when we leave them with massive interest payments. Yellow Hat: Hopefully, politicians will reflect the sentiment of the US people (as they are supposed to) and cut what they need to so that we can return to paying the debt. It is possible that this could simply turn into a ‘chasing our own tail’ scenario and that US citizen simply own part of the government which may end up not being such a bad thing as long as it can still function in the desired capacity. Green Hat: There have been a lot of these since this is a lateral thinking exercise. Not all lateral thinking ideas would be considered growth ideas in my opinion. While this is an exercise in lateral thinking, I took the liberty of making some quick Six Hat thinking

7. Summary: It seems to me that while this issue is actually a fairly complex issue there are some seemingly simple solutions. First, we as the American people need to decide what we want then vote politicians out of office for not doing it. Do we want a balanced budget? Do we want to leave our future government in debt up to its eyeballs? Do we want future generations to pay large interest payments rather than for services rendered? Personally, I feel the government should spend on strategic planning for the future and infrastructure that does not make sense to be in private enterprise. Spending on a strategic future and on building material wealth of the future nation is in our best interest as a nation while the government services make sense when it is not something a private company should own and control. At the same time it should be looking for ways to privatize whatever seems logical to privatize. Even basic services could be privatized (like Fire and Police) and regulated, but does that make sense? Personally, I say Fire could yet I am not sure about Police as being a practical idea. For instance, NASA and space exploration. Some thought it is the area of the government to fund such ‘national’ operations. However, that is not actually true. Space exploration will truly flourish when it is being done by private enterprise. With several companies such as SpaceX in the fray that looks like a future reality. Will we always rely on the government for transportation to other planets? Really? I don’t think so. Finally, government spending on large projects is not a bad thing at all. It always makes jobs. It is really a matter of appropriation of funds for it. Most citizens complain about such things when the government is already spending too much money or when the project does not really provide results or increase the future wealth of the nation. If we had a government that invested in national wealth building for future generations every year eventually we might live off our laurels, facilities and national treasures, yet wouldn’t that be awesome to know we didn’t simply leave them with debt?