tsunami

As the US continues to battle various economic and social issues, there are growing concerns that its leader are falling out of touch with the needs and demands of their people. They undoubtedly have a sizeable amount to deal with currently, especially as they seek to finalise spending plans for 2011 with a financial budget for 2012 required in less than a months time. This lack of cohesion and measured planning is leading to several decisions that may well be considered as rash, all conceived with a view to cutting a vast national deficit.

With the US budget shortfall scheduled to rise to an unprecedented $1.5 trillion throughout 2011, the federal government are faced with the increasingly difficult task of reducing public spending by an amount lowers this deficit without significantly effecting the standard of life for US citizens. This balance is made even more difficult to obtain by a basic rule of economy, whereby a countries prosperity is only as effective as the capital that is invested into it, and governments who reduce spending too drastically will serve to undermine their economy even further.

Timing and Effective Budgeting

Part of budgeting is undoubtedly timing, and preparing a society as effectively as possible for any consequence of spending cuts. This serves the dual purpose of ensuring that any cuts are measured and can be absorbed by citizens without significant impact, while also keeping individuals informed and aware of how budget cuts will effect them directly. While even this is not a policy guaranteed to keep everyone within society satisfied, it does at least mean that the government is doing its best to serve its people and act in a well thought out and transparent manner.