It should really be no surprise given the state of the nation but it is reported that the DNC is in deep financial trouble. Fortune reports that it is juggling accounts to try to keep it running and pay angry suppliers:
FORTUNE -- There's another budget crisis in Washington, and it's unfolding inside the Democratic party. The Democratic National Committee remains so deeply in the hole from spending in the last election that it is struggling to pay its own vendors.
It is a highly unusual state of affairs for a national party -- especially one that can deploy the President as its fundraiser-in-chief -- and it speaks to the quiet but serious organizational problems the party has yet to address since the last election, obscured in part by the much messier spectacle of GOP infighting.
The Democrats' numbers speak for themselves: Through August, 10 months after helping President Obama secure a second term, the DNC owed its various creditors a total of $18.1 million, compared to the $12.5 million cash cushion the Republican National Committee is holding.
Several executives at firms that contract to provide services to the party -- speaking anonymously to avoid antagonizing what remains an important if troubled client -- describe an organization playing for time as they raise alarms about past-due bills falling further behind. And senior strategists close to the DNC say they worry the organization appears to have no road map back to solvency. "They really thought they could get this money raised by the summer," one said, "but the fact is, from talking to people over there, they have no real plan for how to solve this."
Most of recognize a pattern here as far as the left in government is concerned. They tend to be hopeless at staying within a budget or see a pot of gold they cant spend three times over, the US being worse off than us as they can’t actually produce one. We are not sure of what the Yanks are like, but ours tend to downright self-righteous about their spending.
Back in April, Julia Gillard developed a simple analogy to teach us ‘economic simpletons and sloganeers’ the basics of how to budget like the government. It involved ‘John’ whose boss cut his large bonuses out, promising a regular 5% pay rise which never eventuated.
She went on to explain how a rational person would reorganize finances on being told that the rises would not be coming for a few years, but then his pay would go up to what it would have been. ‘John’ being an analogy for government fails to notice that there is a pattern emerging in his bosses promises, so rather than cut expenses like the rest of us, he does the following:
“A rational response would be to make some responsible savings, to engage in some moderate borrowing, to get through to the time of higher income with his family and lifestyle intact and then to use the higher income to pay off the extra borrowing undertaken in the lean years,”
At least his bank manager would get a good laugh.