Sarah Palin Governs Like a CEO in Tough Times

I have always wondered why the Government is not forced to act like American Businesses and Corporations during an economic crisis.

While American Industry is forced to make cutbacks and enact hiring freezes and layoffs. The Federal Government and many state and local governments continue on without adjusting to reality. Sure politicians will give mouth service to a recession, but will rarely cut back staff or implement hiring freezes.



In most areas of the country the Government is the biggest single employer. Layoffs and hiring freezes are unpopular. CEOs can afford to be unpopular, elected officials can't because their employers have recourse at the polls. Plus, the ability to hand out jobs may be the greatest single power of an elected official. When you layoff or stop hiring, you necessarily diminish your personal power.

That is why it was so refreshing to hear Sarah Palin announce a hiring freeze in Alaska for all but public safety officials. You can read more about her state of the state address in the Anchorage Daily News by clicking here.

I am still waiting for a public officials to cut staff and lay people off. Companies have to work within a budge. they don't survive very long on a deficit. Governments, especially the Federal Government, just keeps expanding without trimming staff. As the cost of payrolls and benefits grow, Governments just raise taxes and fees. In other words, we pay for it.

Jack Welch, the great CEO of GE, said that every few years you should layoff the bottom ten percent of your work force. It improves production, controls costs and he argues that you are doing the bottom ten percent a favor by giving them a kick in the pants, since they will not rise in the company anyway. Then you slowly hire more qualified people as profits rise.

How much money would taxpayers save if Governments had an across the board ten percent staff cut every few years?

At least the Palin state hiring freeze is a step in the right direction of fiscal responsibility.

So, again, I applaud Governor Palin for making a tough unpopular choice by freezing hiring in Alaksa state Government. The only thing I question in her speech is that corsage. :)