VoyForums

[ VoyUser Login optional ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4 ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 04:37:53 04/28/04 Wed
Author: Don Johnson
Subject: Alaska's annual fiscal problem

Alaska's annual fiscal problem

I would like to address the issue of how to resolve Alaska's annual fiscal problem.
Assume an annual income of $40,000 with a living expense budget of $40,000 per year.
Also assume two bank savings accounts, accounts (A) & (B) with $30,000 in each.
What would happen if you received a pay cut to only $20,000 per year with this current $40,000 budget?
If you reduced your annual spending to $25,000 you would still be required to withdraw $5,000 from
account (A) each year. This draw down process could continue for up to eight years
and then account (A) would be empty.
How would you prevent this draw down process from destroying both accounts?

Some say we should now use the Permanent Dividend Fund, PDF to resolve the fact that
State over spending is currently " Running Dry " Alaska's Constitutional Budget Reserve.
Switching accounts cannot resolve Alaska's illogical fiscal spending problem.
It is just a matter of time before the most wealthy of accounts would be totally devastated by
such State spending. Most State fiscal solutions begin under the assumption that
"the State has reduced its budget all that it can". This State assumption is like removing the pea
during a shell game. Alaskan residents cannot win this game because it was rigged before it began.
All current "State Solutions" would eventually fail under its current illogical spending pattern.
The only real solution is match State spending to its current income.

Thank you.


Don Johnson
Soldotna, Alaska
ccpwow@gci.net

[ Next Thread | Previous Thread | Next Message | Previous Message ]
[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 2.94, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2008 Voyager Info-Systems. All Rights Reserved.