Calvin University's official student newspaper since 1907

Calvin University Chimes

Since 1907
Calvin University's official student newspaper since 1907

Calvin University Chimes

Calvin University's official student newspaper since 1907

Calvin University Chimes

The government is not a business

I recently listened to Episode #591: “Get Your Money’s Worth” of the popular radio show and podcast “This American Life.” One segment of the episode featured a conversation with a major Republican donor, discussing his rationale for donating to a particular candidate. One comment he made stood out to me: “At the end of the day, a country is a business.” This thought was later expanded to include the idea that the country should be run like a business. And it’s this belief, among others, that is motivating him to make political donations in the neighborhood of $1 million.

Here’s the problem: the government is not a business. It is not even like a business. While it is true that both businesses and the government need to be fiscally responsible, the situations for and applications of fiscal responsibility are vastly different for each. This is due to both the difference in fundamental goals and the financial standings between the two. It is unwise for a business to continually run a deficit because running a business is fundamentally about trying to earn a profit. The government’s goals, however, are much more complicated. The preamble of the Constitution outlines governmental goals such as establishing justice, ensuring domestic tranquility, providing for the common defense and promoting the general welfare. Nowhere among these will you find anything about turning a profit. In fact, the last time the federal government did possess a budget surplus, the government quickly acted to rid itself of the surplus through the Bush tax cuts. Furthermore, the government is far more capable of running a deficit due to its ability to both generate revenue through taxes and it’s nearly perfect and limitless credit. No business has revenue streams as guaranteed as taxes or the ability to take out risk-free loans.

Of course, none of this is to devalue fiscal responsibility for the federal government. The current budget situation (while not as bad as most political candidates would have you to believe) is a serious concern for the country’s future. To solve it will require a difficult and in-depth consideration of how the federal government manages its money. But to treat the federal budget like the budget of any business, even a multinational corporation, is unreasonable.

Essentially, my point is this: the next president must be capable of doing more than running a business. She or he will be responsible for the welfare of millions of Americans and hold a strong influence over the welfare of millions more around the globe. Our president must manage a budget far more complicated and important than any private budget they may have had the experience of overseeing. It is entirely possible that a businessperson could make a great president, but if so it will be because they learned integrity, sober judgment and humble leadership through their trade.

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