Why saving?

A balance, what’s that anyway?

Balancing is a popular word in management circles. The meaning is, to compare the income and the outlay of organizations. In well balanced organizations the result is about zero in average. Terms like bankruptcy, flop, going bust are usual if organizations miss such balanced situation for longer times, means outlay is always higher than income.

To influence balances we have two main opportunities. Either activities to empower the income side or activities to reduce the outlays. Balancing problems in families may for instance be regulated by additional participation of family members in the common income. Or family members start improving their education in order to upgrade their income. If that’s not enough, one will work out a new priority list for outlays.

The same mechanisms are used whether the organization is the state. States income consists of the summary of taxes paid by all people plus all income which is directly earned as enterprise. Reductions in personal costs, reductions in investments and reductions in cash flows sponsoring organizations are opportunities manipulating the outlay side. Of course several combinations are useful. Let’s check now the question, for which reason the state needs money.

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First of all the state needs money to activate and operate organizations and mechanisms of public interest. Of course it’s not forbidden, that such organizations may work out a part of their costs themselves. The military, executive groups, infrastructure organizations, educational organizations or health organizations are examples.

Besides that the state has to install and operate parts of the public environment. Also here it’s not forbidden, that a part of the costs is carried by enterprise activity. Energy supply, traffic environment, public buildings, hospitals and sports environment, but also science and arts.

Furthermore the state needs money for a sponsoring of certain groups. Children, teenager, retired seniors and persons unable to work due to accident or disease reasons are examples.

And finally the state needs to save money as reservoir for specific needs. Help in case of catastrophe, sponsoring for home building people and sponsoring of cultural goods may be examples.

Summarizing, three sinks are visible: costs produced by the acting people (civil servants), costs for goods and costs for cash flow to certain consumers (including coverage of existing interests).

As far as good, but what’s here Satyre, anyway?

Of course the state knows all mentioned circumstances very well. Therefor the so called structural steps have absolute priority in order to correct balancing issues. Enterprise activity of state owned organizations is the magic approach. They already earns first class results. The fitness opportunities offered by the military are a real hit and they contribute to peoples health. Even the driving schools within the military produce fat black figures. The growing group of 4 wheel drivers prefer them much.

Another aspect is the opportunity to go for shopping at post offices and other public offices when visiting them, like introduced by fuel companies long time ago.

Also an excellent example is the new and improved access to knowledge and education. As well civil servants specialists as also teachers propose their support during the lesson free period for everybody. Actually even the industry uses these offers step by step rather frequently.

Increasing income is signalized also from the arts and event activity. All responsible managers outbid each other using really high creativity in order to achieve best results. But even selling activity, distributing former state owned goods started successfully. Editorial offices, broadcasting offices and film production offices of state owned organizations gain money as training opportunities for new recruits.

The touristy introduction of public buildings and certain military environment finalizes the brief roundtrip.

Because the taxes are calculated as percentage of the gross income, increasing of gross income automatically will also increase taxes volume. Financial engineers are permanently constructing advanced concepts to enable companies better competitiveness in order to bring up gross salary. A new world market leadership in certain sectors is the result of such activities.

But the state is active not only in domestic terms. It’s a big deal to propose all new know how to third states with structural or balancing problems too. Austrian knowledge today is worth gold…

The base for all new activities are business plans and cost calculating models. All involved responsible managers introduce their visions and creativity to remain successfully, doing competition. Quality is the result.

No question, all those actual developments are in strange contradiction with the former models. Remember, in the past everything else had to be cancelled step by step, because of the rigid and unchangeable personal costs. After everything else was cancelled, the fascinating situation arose, that civil servants only administered themselves but under permanently increasing costs!

Of course the new models only shall work this way until the bunch of about 2000 billion Shillings plus interests is earned. This sum was gathered because during the period of about 30 years in average every 10 minutes one new million of Shillings was taken as additional debt. One may hope, that earning the money again will not need 30 years further …

After that earning period the state owned enterprises may be privatized (or not).

With pleasure we can recognize that the state’s enterprises dramatically contribute in reduced tax obligations.

Tax payers we are entering the door to paradise right now…

To save, why? R1-20000714

Last Update: June 2002 - send me an email
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