Currently the cash basis accounting of the US government distorts the real situation and the financial impact of policy decisions.
Examples of distortions:
- There is no distinction between government spending on infrastructure projects (assets) and subsidizing green energy (expense).
- Unfunded pension commitments (contingent liabilities) are not accounted for
- The amount of land and assets that the US government owns is often not accounted for.
A quarterly meeting with the American people (think shareholders) will help bring true accountability to the government.