Elon Musk of the Department of Government Efficiency has sought to find $1 trillion or $2 trillion to cut from the federal budget. That is a noble target, but neither Mr. Musk nor anyone in the federal government has a complete view of federal finances. It turns out that federal budget accounting rules are archaic, little more than a cash flow statement for most agencies.
We demand and receive higher precision in accounting from large American corporations. They hire chief financial officers who, although well compensated, face legal and professional risks if the financial records are not complete and in accordance with various regulations and Generally Accepted Accounting Practices. The CFO can readily produce and defend income statements, balance sheets, and cash flow statements.
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