Many in New York City are baffled by the recent announcement that a government-sponsored grocery store to help bring down food costs (a critically important issue), will cost taxpayers $30 million when all rational estimates say this should cost much less than $10 million. Who is benefitting from that "extra" $20 million-plus?
Whose money is being spent? Most yelling for more taxes don't realize the money being spent by governments is collected from all people who pay taxes, not just income taxes from high earners (sales taxes, excise taxes, fuel taxes, etc, etc). So that tax money being wasted is the money of almost all residents, not just wealthier residents.
The repair of the Lafayette Park fountains in Washington DC by Clark Construction has become significantly more expensive, rising from a 2022 estimate of $3.3 million to a final, controversial contract of $17.4 million. Primarily due to a no-bid contract structure (typically reserved for natural disasters or wartime needs), a self-imposed "urgency" deadline for the 2026 nation's 250th anniversary, and added, costly "fast-track" fees.
The FED building renovation and additions are costing billions more than originally estimated and while funds for these renovations are being raised through its own income (primarily interest on government securities) rather than taxpayer dollars, one has to wonder. Some of the stories around excessive government spending are breathtaking, anywhere from construction projects to healthcare to the military. Housing people in hotel rooms costing $9,000 - $12,000 per month in NYC (without a kitchen) when the rent on a 1-bedroom is around $5,000 per month? The Air Force paid roughly $1,300 for coffee cups that cost significantly less, and overpaid by 8,000% for soap dispensers.
Some argue for more government spending (and taxation), while others say all government spending is wasteful. How can you win the argument for more taxation and government spending when there are so many examples of extremely careless and inefficient government spending? Or is this spending rife with corruption? Who is getting the kickbacks? Certain things are essentially managed by governments, especially things related to safety, security and health, even if they are inefficient. We should all be focused on improving the spending efficiencies as much as we are on adding or cutting the programs they serve. Then again, how can you argue against government spending (wastefully) on things when they already spend (wastefully) on other things? Everyone is for or against something, it seems, based on their own needs and wants.
Government spending is essential, and I suspect many wealthy people would be OK paying more in taxes if they saw their money being spent with efficiency and outstanding results based on contractual obligations.
Ken interprets market data, staying in constant communication and offering valuable insight that then translates into an informed decision.
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