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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (125608)	11/26/2009 12:33:17 PM
From: cosmicforce	Read Replies (2) \| Respond to of 542253

Politicians and bureaucrats, even industry, spends money it has in this fiscal year lest they lose it. I've seen this in for-profit businesses where some amount of budgetary money is spent rather than being rolled over into next years budget. If you don't spend it - you don't get credit for being thrifty. Each year, budgets were created from scratch. If one talks about 5 year plans, one is thought to be a communist (because they had them). Somehow, government and industry doesn't get encouraged by finance or tax law to work with 5 year planning windows. I learned early on that cost saving doesn't really work that well in organizational behavior - if you could show that something the company spent $1MM could be done for $100k and with no capital investment - all you did was embarrass the people who spent the unnecessary money (making them your enemy). Organizations will "save money" by getting a Capital Expenditure, spending more money in their budget and building empires, to reduce costs per item. It's insane, but true.