GOVERNMENTS AREN’T BROKE — THEY’RE POORLY MANAGED!
Why deficits keep showing up even when taxpayers are paying more
If you feel like government has been reaching deeper into your pocket year after year — and still claims it “doesn’t have enough money” — you’re not crazy.
The uncomfortable truth is this: governments don’t usually run deficits because they lack money. They run deficits because they lack discipline. They can always find a reason to spend whatever comes in — and then some.
And the public gets trained to accept it: “It’s complicated.” “Costs are rising.” “We had no choice.” “It’s for safety.” “It’s for climate.” “It’s for equity.” Pick the slogan.
But here’s the simple question taxpayers are allowed to ask:
If you’ve been collecting more money for ten years… why do you still need deficits?
The “more money” illusion
First, yes — revenue totals often go up over time. But that doesn’t automatically mean government is richer in any practical sense.
Inflation makes everything look bigger in dollars.
Population growth means more taxpayers and more demand for services.
Asset inflation (especially housing) drives big jumps in property-related taxes, fees, and assessments — without improving anyone’s real standard of living.
So when government points at a bigger revenue number and says “record funding,” taxpayers should answer:
“Record compared to what — last year’s dollars, or reality?”
Why deficits persist anyway: the real drivers
Even after you account for inflation and growth, deficits keep showing up because government spending tends to behave like a gas: it expands to fill whatever space is available.
Here are the most common reasons:
1) Spending is on autopilot
A huge chunk of government budgets is locked in: wages, benefits, pensions, negotiated agreements, long-term contracts, and legislated programs. Those aren’t easy to reverse quickly — so the budget becomes a machine that keeps rolling forward whether service improves or not.
2) Wage and benefit growth quietly eats everything
In many public systems, “cost of government” becomes a bigger priority than “quality of service.” Wage settlements compound. Benefit costs compound. New positions get added. And once something is added, it rarely gets removed.
Taxpayers aren’t anti-worker for noticing this. It’s basic math: if staffing costs grow faster than household income, the public eventually taps out.
3) Interest payments punish yesterday’s decisions
Debt interest is the ultimate “non-service.” It doesn’t pave a road, reduce crime, improve healthcare, or fix water systems. It’s just the bill for past spending.
When rates rise, governments can easily end up spending more on interest while telling the public they must “cut services” or “raise taxes.” That’s not a funding problem. That’s a management consequence.
4) One-time money gets used to fund permanent commitments
When revenue spikes from a hot housing market, a temporary transfer, or a windfall, it should be treated carefully. Instead, governments often build new ongoing spending on top of it — and then act shocked when the windfall fades.
That’s like using a one-time bonus to take on a permanent car payment — and blaming the bank when you can’t keep up.
5) Program creep: small ideas become permanent empires
Every year brings new initiatives, new reporting requirements, new consultants, new strategies, new “plans.” Each one sounds noble. But the pile grows. Administration grows. And after a while, it becomes almost impossible to tell what government is actually doing better for the money.
6) Capital projects drift and balloon
Projects start as “$X million,” then become $X plus redesigns, delays, change orders, and “unforeseen conditions.” The public is told the overruns were unavoidable — and the lesson is never learned, because there’s no personal consequence for bad project management.
7) Failure often gets rewarded
In the private sector, poor management can destroy an organization. In government, poor performance often becomes the justification for a bigger budget: “We’re overwhelmed.” “We need more resources.”
That’s how deficits become normal — and how taxpayers get trained to accept “more money” as the only solution to every problem.
The accountability test taxpayers should demand
Before any government asks for another dollar — before the next tax hike, fee increase, borrowing plan, or “investment strategy” — here are the questions that should be mandatory:
What did we stop doing to pay for this? (Not “what do we want,” but what do we stop.)
What measurable result will the public get, and by when?
Is this permanent spending being funded by temporary revenue?
What share of new money is going to wages/benefits vs front-line service improvements?
What’s the lifecycle cost (build it, staff it, maintain it, replace it)?
What happens if revenues flatten — what gets cut first?
If politicians can’t answer those questions plainly, that’s not “complexity.” That’s avoidance.
A practical way forward: manage money like it matters
Here are reforms that don’t require ideology — just competence:
Taxpayer Affordability Policy: tie tax increases to what households can realistically absorb.
Core Service Reviews: focus on core priorities and cut the clutter.
Zero-based review cycles: periodically justify spending from scratch in selected departments.
Transparent performance dashboards: cost per service unit, timelines, outcomes.
Hard rules against using one-time revenue to fund ongoing programs.
Project discipline: publish change orders, consultant totals, and slippage — in plain language.
Closing thought
Government will always have a reason for deficits. The reasons are endless. The money, however, is not.
Taxpayers don’t need more slogans. They need proof of management.
And here’s the line that should be repeated every budget season:
Before you take more from the public, show the public the management plan.
Comments
Post a Comment
Thank you for your input. Your comment will appear once reviewed.