When private companies face a slowdown such as now or an operating deficit, what do they do? They lay off employees, cut benefits, stop contributing to 401-k's, coffee cups, tighten up on office supplies, etc. You never hear a company say to a customer: times are tough. We are cutting back on our service to you. It would be a death knell.
What does government do? Cut back on services.
Therein lies the difference between the two and why the government can never operate at a profit or breakeven. Look at everything run by the government from Amtrak to mass transit to the postal service: they all lose money.
What does government do? Cut back on services.
Therein lies the difference between the two and why the government can never operate at a profit or breakeven. Look at everything run by the government from Amtrak to mass transit to the postal service: they all lose money.