Project #1

Paul Krugman of the new york times says that the government does not run like a corporation. This is easy too see because a corporations focus is to gain money for there investors. So what is exactly so bad if the government becomes a corporation. They shall make money and it will pay off to the investors or citizens of that nation. He makes an interesting point of saying that money is continuously flowing out of america with no new money coming in. This is because corporations attempt to go after the biggest target market, in this case america has the largest economy so they are everyone's target meaning that american companies and foreign companies both target the american consumer but american companies at the same time do not create exports. Krugman also makes a point that the government cannot slash the budget, "Consider what happens when a business engages in ruthless cost-cutting. From the point of view of the firm’s owners (though not its workers), the more costs that are cut, the better. Any dollars taken off the cost side of the balance sheet are added to the bottom line." This is powerful as when a government tries to save costs people rebel saying they take away services, but in the end this will help them more then the service taken away. 


It seems as though the best option for the government is to become business oriented so they can gain much more control of there nation and bring the reins down upon spending as well as increase spending.