Losing Money Need Not Bankrupt You - For A While

Millions To Trillions To What?

In one of my first business ventures I learned the hard way that you could be losing money and not go bankrupt. How is that? By increasing sales enough to cover the expenses. We did that for almost 3 years, struggled but stayed alive by increased sales.

It had to come to an end wouldn't you suppose? In our case the answer was yes. We took a small soil packaging company, added other products we could sell to our retail stores customers and started to grow. It always felt tight, but we kept on keeping on. But the solemn day of reckoning arrived, we couldn't pay both our bills and our payroll. The bills started to be delinquent.

We got lucky. We produced a great product with great packaging. The consumers loved it, the retailers kept reordering it. We started to eat into the market share of our competition. One day the market leader approached us and we ended up merging with them.

This was a good thing. What they had to offer was management experience and good business sense. We were forced to make a lot of changes as we gave operational controls over to our new partner. I stayed in sales, my father over production. What we discovered was the beauty of making a profit. Our combined volume and combined equipment made us not only more efficient but moved both companies into a sweet profit level. All of us prospered.

Now compare this to a government. They don't have to worry about making a profit.  Heck, they have proven that they don't even have to have a budget. Similar to my first business which kept paying bills by increased sales and cash flow, albeit we were actually losing money, all the government has to do is find a similar solution. That solution is increased revenue, not by producing anything or selling a product, but by increasing the tax revenue they capture or by printing money.

Does this really make sense? It wouldn't work in business and it only works in government temporarily. Like our little company we reached a point where we had to sell or stop or merge. We were lucky with a good merger. But what about the USA? We the people are in debt head over heals. The solution: our leaders are zooming towards tax increases. They want to pick our pockets. Also, their solution is to borrow more, trillions more, and to increase their credit card line that we are obligated to pay. We are the people that must pay the debt.

Don't kid yourselves, it isn't really going to take tax increases on the rich to solve our problems. . Rich only will pay a couple of weeks worth of expenses. What about the other trillions? Ask Greece about that? Ask those who rioted in the Streets, rebelling against the reforms. That is what is headed for us, just like a business going bankrupt because it was losing money. We must press our leaders to stop the infernal spending. We must as a people stop asking for things from our government that is not necessary. We must as a people stop being takers. What we need is leadership that will do the expenses reductions. We need a citizenry that will demand that of our leaders.

Isn't this the type of common sense I should have had in my first business? We were lucky. Will our Country be lucky too? I am not so sure of that being the end result.