Winnipesaukee Forum - View Single Post

ushaggerb · 05-21-2019, 02:43 PM

I am NOT in favor of big government, nor am I in favor of continually raising taxes or funding propositions that make no sense. However, coming from the corporate side, there is a huge advantage that government spending has over corporate that I’ve had to concede. A dollar that goes into the corporate kitty has several things going against it:

1. It is depleted by marketing and selling costs which government isn’t. These can be significant part of P&L, in the neighborhood of 30-35%. My corporate dollar just became my corporate $0.70
2. It is further depleted by profit requirements, which government isn’t. Again, significant part of the P&L, in my industry, roughly 20-25%. My corporate dollar became $0.70 and now $0.50.
3. Waste. Here corporate might have an edge over government spending, but there is plenty, if not enormous, waste in corporate. I’ll keep my corporate dollar at $0.50, add back a dime for better use of resources. My corporate dollar became $0.60.

Government starts at $1.00, corporate starts at $0.60. Remember already factored in government vs corporate waste, so both equivalized for waste, efficiency and effectiveness.

Where to go with this quandary?

05-21-2019, 02:43 PM	#14
ushaggerb Senior Member Join Date: Apr 2010 Posts: 108 Blog Entries: 1 Thanks: 69 Thanked 30 Times in 22 Posts	Government spending versus corporate I am NOT in favor of big government, nor am I in favor of continually raising taxes or funding propositions that make no sense. However, coming from the corporate side, there is a huge advantage that government spending has over corporate that I’ve had to concede. A dollar that goes into the corporate kitty has several things going against it: 1. It is depleted by marketing and selling costs which government isn’t. These can be significant part of P&L, in the neighborhood of 30-35%. My corporate dollar just became my corporate $0.70 2. It is further depleted by profit requirements, which government isn’t. Again, significant part of the P&L, in my industry, roughly 20-25%. My corporate dollar became $0.70 and now $0.50. 3. Waste. Here corporate might have an edge over government spending, but there is plenty, if not enormous, waste in corporate. I’ll keep my corporate dollar at $0.50, add back a dime for better use of resources. My corporate dollar became $0.60. Government starts at $1.00, corporate starts at $0.60. Remember already factored in government vs corporate waste, so both equivalized for waste, efficiency and effectiveness. Where to go with this quandary?