Real Life: Plan B

Financial stability is all a matter of perspective.

I think of it in terms of my father’s small business. When I was a child, I never understood the concept of employees and why my father would not want people to work with him and go to lunch with him. But the financially stable architectural company he dreamed of was not possible if he chose to fund employees and a large overhead cost.

Some people questioned my father’s decision to pursue a solo career. Until the economy plunged.

Footing his own health, dental, office space and overhead costs up front kept my father’s company out of debt. Unlike most of the companies and employers in the housing industry, he was able to keep our home and his business afloat through the recession.

Whenever we toy with the hypothetical of what-could-have-been, a sweat breaks out on my father’s forehead. A bigger business means more money in advance and more risk of crashing with the economy.

Government is like a big business. And the public services offered require more resources and more funds from more taxes. Eventually the cost of government services swell to 100 percent more than the cost would be if a private company took over to achieve the same goals.

A government service means more money deposited out front and more risk of crashing with the economy. Or the lack of a budget. Or a failing health bill. Or a prolonged recession.

Privatization of businesses is not taking away necessary control from the government but relieving some of their fiscal responsibility and becoming a check and balance on government power.

It is called capitalism, checking and balancing power so that not only one entity has complete control over every aspect of life. Capitalism is a synonym for private enterprise. Capitalism is the foundation for our government.

And yet there still is a political fuss among economists, government officials and businessmen over whether services such as public libraries, road work, school systems or fire fighters should be privately owned and operated industries.

Perhaps if these companies were operated like a private business instead of a large government system, the financial plan of businesses would be implemented instead of the relaxed monetary direction of our current leadership. See the budget crisis for a recent example.

For a small business, the first step in making a plan for the direction of the company is to make a plan for the money. A business only works if it is financially sound. Private businesses are usually wiser with their finances. Unlike the state, they don’t have a seemingly endless source of coffers to borrow from. And they usually understand the damaging nature of debt.

When I was 10, I built up over $50 dollars in debt to my mother. I felt like she owned my soul till I worked it off. Especially since mowing the lawn meant a $5 dollar a week allowance. I swore never to be in debt again. I was even shy to order my first credit card.

I wanted private control of my finances. Like my dad, I wanted to make sure I was financially able to fund each purchase I made and understand the financial repercussions I would have if I was spending outside my budget.

Despite capitalism and the proper function of businesses in the real world, money is looked at differently when it comes to the government and the resources they provide.

Is the money borrowed by the government to fund public resources really a safer bet than the stable and financially secure business models offered by private providers?

Stability is not always attributed to the sources that deserve the praise.

In real life, we rarely put trust into something that is failing. Time for Plan B.