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Singer Britney Spears attends a ceremony honoring her with a star on the Hollywood Walk of Fame on November 17, 2003 on Hollywood Boulevard in Hollywood, California.
 
MTV VIDEO MUSIC AWARDS 2002. RADIO CITY MUSIC HALL, NEW YORK CITY.
 
(U.S. TABLOIDS OUT) Britney Spears performs on stage during the 31st Annual American Music Awards at The Shrine Auditorium November 16, 2003 in Los Angeles, California.
 
Despite the known risks of smoking, Hollywood celebrities insist on perpetuating the habit!.Chain-smoking Britney Spears, and her chain-smoking new boyfriend Kevin, leave their hotel for a trip to the beach in Malibu, CA. .Followed by a convoy of 20 carloads of paparazzi, the lovebirds sunbath together and play with their new Yorkshire Terrier named Mojito. The beach became so busy that Britney and her beau left in her rented white Mercedes sport coupe and zoomed off back to their bungalow at the Beverly Hills Hotel.
 
Singer Britney Spears photographed backstage during 'Spanking New Music Week' on MTV Total Request Live at the MTV Times Square Studios November 18, 2003 in New York City.
 
2004 Billboard Music Awards - Arrivals.MGM Grand Hotel, Las Vegas, Nevada
 
Paris Hilton and Britney Spears spend another night out on the town. They started their Sunday evening at "Guy's" nightclub in West Hollywood and stayed til closing. Afterwards they went to a bungalow at the Beverly Hills Hotel where Brandon Davis was throwing a party. Lindsay Lohan also attended and reconciled with with former nemesis Paris. The three then drove to Paris' home and spent the night. NO PANTY SHOTS ARE EXCLUSIVE.
 
Singer Britney Spears performs onstage during the MTV Video Music Awards at The Palms Hotel and Casino on September 9, 2007 in Las Vegas, Nevada.
 
Singer Britney Spears accepts the Best Female Video award for "Piece of Me" on stage at the 2008 MTV Video Music Awards at Paramount Pictures Studios on September 7, 2008 in Los Angeles, California.
 
Singer Britney Spears, winner of bambi award, poses with the trophy at the Bambi Awards 2008 on November 27, 2008 in Offenburg, Germany.
 
Singer Britney Spears spends another afternoon by the pool with her two sons, Sean Preston (b. September 14, 2005) and Jayden James
 
During a night off from her tour, singer Britney Spears brings her sons Sean Preston (b. September 14, 2005) and Jayden James (b. September 12, 2006) to visit the Eiffel Tower.
 
Singer Britney Spears arrives at the 2009 Teen Choice Awards held at Gibson Amphitheatre on August 9, 2009 in Universal City, California.
 
Britney Spears is spotted with what appears to be a diamond engagement ring on her left hand as she checks out of the Park Hyatt Hotel and takes a stroll in the park with boyfriend and manager Jason Trawick and sons Sean Preston (b. September 14, 2005) and Jayden James (b. September 12, 2006) before heading to the airport. Spears' next stop is Sydney for the next round of shows in Australia for her "Circus" tour.
 
Britney Spear's wax figure is on display to celebrate the 2nd birthday of the Washington DC's Madame Tussauds on October 1, 2009 in Washington, DC.
 
Singer Britney Spears arrives at the 52nd Annual GRAMMY Awards held at Staples Center on January 31, 2010 in Los Angeles, California.
 
Britney Spears and her boyfriend Jason Trewick enjoy an afternoon at the beach in Hawaii. Spears, who recently filmed a guest role on the hit TV series "Glee", showed off her toned beach body in a bright green bikini. Britney and her boyfriend Jason could be seen kissing while swimming in the ocean and emerged from the water holding hands.
 
Singer Britney Spears out shopping at the Theodore store in Beverly Hills, CA.
 
Britney Spears and Jason Trawick attend son Sean Preston Federline's Little League game in Calabasas CA... Brit's ex Kevin Federline is one of the coaches for Sean's team. All three are seen on the field after the game.
 
Britney Spears and current boyfriend, Jason Trawick, attend her son Jayden's baseball game. Kevin Federline and girlfriend, Victoria Prince, were also present. Spears and Trawick were very affectionate as they sat and watched Jayden play baseball while Federline coached from the sideline..
 
Britney Spears attends "Good Morning America's" Taping Performance At Bill Graham Civic Auditorium on March 27, 2011 in San Francisco, California.
 
Singer Britney Spears and her sons Jayden James and Sean Preston pose with Kissy Simmons, Derrick Willimas, Ntsepa Pitjeng and Niles Rivers of The Lion King at Mandalay Bay on April 3, 2011 in Las Vegas, Nevada.
 
Singers Britney Spears (L) and Rihanna perform onstage during the 2011 Billboard Music Awards at the MGM Grand Garden Arena May 22, 2011 in Las Vegas, Nevada.
 
Britney Spears in concert at the O2 in London as part of her Femme Fatale UK tour.
 
Celebrities attend the awards press room after the 28th Annual MTV Video Music Awards at the Nokia Theatre L.A. Live in Los Angeles.
 
Singer Britney Spears and fiance Jason Trawick arriving on a private jet and then at The Planet Hollywood Hotel & Casino in Las Vegas, NV. Britney and Jason are celebrating their recent engagement with family and friends. Britney has already had 1 marriage in Vegas maybe the couple will tie the knot this weekend.

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Budget: What Budget?



The so-calledRyan budget that occupies so much news space, as its author does televisednews-talk shows to explain it, misses an important point. Its center piece is togo after one of the large transfer payment generating machines in government,Medicare. Government payments to individuals, whether they are mailed or directdeposited, are called transfer payments. Two of the other large transferpayment generators are the Social Security Administration and the VeteransAdministration.

The importantpoint to consider is that government programs are overhead and therefore arefixed expenses. While it is true that transfer payment amounts are trendingupwards and will continue to do so as the post-WWII generation reachesretirement age, they are still fixed expenses which are only part of a budgetequation. The other two parts of the budget equation are variable costs, alsoknown as the cost of doing business, and revenue. Business revenue comes fromsales. Governmentrevenue comes from taxes.

Budgets thatpropose to reduce revenue work when a business plans to downsize as a companystrategy. For example, instead of making a 2% margin on a volume of $20M inrevenue, a $400K profit; the downsize strategy is to make a 10% margin of $10Mrevenue, a $1M profit. You can see why a budget that cuts fixed expenses andreduces revenue is unsellable to a board of directors and to stockholdersunless the strategy is to downsize the business. So is the idea of downsizingthe federal government and reducing taxes. But that is a political digression.

A budget or thelack of a budget is an elephant in the living room of a business. Many times,as a management consultant, myjob has been to say to business owners, “Hey, you have an elephant in yourliving room. What are we going to do about it?” Then come the excuses that it’sin their head or that their accountant does it or that they have a spreadsheetthat they purchased with their business plan online or that they are working onit, etc.

Any planningthat a company tries to make without a budget is a shot in the dark or someother metaphor connoting guesswork. Many times entrepreneurs lack businesstraining per se, which is why they goto SCORE [Service Corps of RetiredExecutives] or they bring in a consultant. Many business owners make the faultyassumption that their accountant takes care of their budgeting for them. Theaccountant is a good person to ask about the arithmetic, but generally speakinga budget is not an accountant’s job.

Anaccountant’s job is tax, just as an attorney’s job is law. In my view, the onlytimes that a business owner needs advice from either profession is when theyare dealing with the IRS or dealing with contractual matters. They both are withoutdoubt the wrong professions to ask for business advice. Asking an accountant forbusiness advice is like driving a car and trying to see where you are going bylooking in the rearview mirror. An attorney can only tell you for certain whatroutes not to take and will find ones not to take that you never knew existed.

To be fair,the accountant and the attorney and the banker, for that matter, all look atthe same financial data. Each is a different audience, if you will. They lookat different things in addition to how they are going to get paid for looking,which is its own consideration. The major sections of the financial data thateverybody looks at are overhead, considered a fixed expenses, and costs, whichare considered variable expenses. Revenue is the paramount consideration forbusiness.

“Why are youin business?” is a straight forward question with only one correct answer: tomake a profit. You would be amazed at how many times business people tellelaborate tales in answer to that question about providing something for theirfellow human beings or some such thing. Others seek to revolutionize somethingor to create new atmospheres. It sounds good but it does not matter. Making andprotecting profit is the only thing in business that matters. Business cannotsucceed at that venture without a budget and an organized, annual budgetingprocess.

Butgovernment is not a business. Balanced budgets exist in business. Revenue minusexpenses minus costs equals profit. Prudent business management is all aboutbalancing revenue and costs to achieve profit. Successful management thinksinside the box, because that’s where the money is. Budgets make profits happen.

The idea of afederalbudget is relatively new. You will not find a federal budget mentioned inthe Constitution. The Budget and Accounting Act of 1921 created the U.S.General Accounting Office as part of the Legislative Branch to audit the federalbooks and prevent fraud. The 1921 legislation created the Bureau of Budget inthe Executive Branch to coordinate budget submissions by various departments andagencies. By the 40s, the idea of a balanced budget was so much old politicalrhetoric. Political parties say things they think that voters want to hear. Thatis what the Ryan budget does. That is all that it does.



 Article first published as Budget: What Budget? on Blogcritics.

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