Budget Cuts

Much like a company or a household, to properly run a government, revenue must meet or exceed expenditures. When spending is more than the revenue obtained, there is a budget deficit. One way to reduce the deficit is through budget cuts. Budget cuts for the government can come in many forms, including reducing services and administration. Ultimately, budget cuts are needed to maintain a balance between spending and revenue.


Politicians and the mainstream will certainly love this… Last week, Moody’s Investors Service changed its outlook on the U.S. national debt from negative to stable. (Source: Reuters, July 18, 2013.) Despite the credit reporting agency’s “upgrade” on U.S. national debt,…

There’s a belief that the rich become richer because they are frugal and know how to save. The budget cuts and tax increases at the beginning of the year saw higher income taxes for those earning over $400,000 annually. President…

In technical analysis, the chart tells a story. On Monday, the S&P 500 closed below 1,500 for the first time since February 4, driving fears of a multi-year topping, which I have discussed in the past. (Read “Alert: Bulls Should…

There were two hurdles investors and business people were worried about. The first was the presidential election; the second was the fiscal cliff. While the presidential election has concluded, the ensuing gridlock that will now become a reality has many…

Indianapolis, Indiana, home to the Indianapolis 500, this year played host to the Super Bowl. With a population of close to 840,000, it is the 12th largest city in the U.S. Indianapolis is presently searching its budget deficit to find…

Sure, you can listen to the analysts and economists who tell us the U.S. housing market is getting better. But you can’t fight the reality of the numbers… The U.S. S&P/Case-Shiller Home Price Index dropped four percent in the fourth…

Another U.S. city on the brink of bankruptcy… Stockton, California, a farming town near San Francisco with a population of 292,000, is meeting with creditors and labor unions this week to discuss how it can avert filing for bankruptcy due…

California Governor Jerry Brown and his Democratic government made financial projections for California’s current fiscal year, which began July 1, 2011. Only three months into the current fiscal year, tax revenue for California has fallen $705 million. The risk? Based…