🏛️ Incentives: Why Congress Is Always Saved — No Matter the Deficit

6 min read

In a June 11, 2025 interview with Bloomberg, Paul Tudor Jones proposed a blend of 6% across-the-board spending cuts, strategic Fed appointment swaps, and interest rate reductions as a pathway to closing the federal deficit — currently hovering around 6% of GDP. On the surface, these feel like decisive external levers — fiscal tightening, monetary easing, debt relief — but they sidestep the deeper problem: an internal system misaligned by temporary political convenience and vested corporate interests.

Today’s budgetary debates rarely touch the structural dysfunction at the heart of Washington:

🏛️ Legislative gridlock ensures spending priorities are dictated by whoever yells the loudest, not by long-term value.
💸 Corporate lobbying and “earmark” politics embed continuous inflows to well-connected sectors, regardless of efficacy or national priority.
🔁 Cyclical stop-gap measures—like temporary tax cuts or euphemistic “budget extensions”—bounce us from crisis to crisis without resolving core issues.

🛠️ Structural Repair Over Quick Fixes

If we commit solely to “external” solutions—steep spending cuts, dovish rate shifts, tax pivots—then we’re just papering over cracks. True fiscal durability demands internal reform:

1. Sunset clauses for tax deductions and agency authorizations.

2. Independent budget oversight with real enforcement teeth.

3. Anti-lobbying "cool down" periods to reduce special interest influence.

4. Balanced budget amendments tying spending limits to clear outcomes—not political deadlines.

But here's the Deficit Fix No One Wants to Talk About: pay elected officials more
— and tie it directly to performance.

Large-cap corporations often spend 20–25% of revenue on salaries and admin, including high compensation tied to performance. For example, $Axon Enterprises, Inc. paid its CEO $165 million in 2024, a figure that might raise eyebrows—until you realize this weapon’s manufacture company generated $2.1 billion in revenue. That’s under 8% of top-line revenue — a premium for leadership tied to measurable execution.

Why shouldn’t government follow suit? Back in 2011 Warren Buffett once quipped that no Congressman should be re-elected if the deficit exceeds 3% — and just 14 years later Elon Musk just echoed that same view on X.

Here’s the real argument: better pay may lower the cost of corruption. If we want elected officials to resist bribery, backroom deals, or being financially leveraged by lobbyists, then we need to treat those roles with the same seriousness as we do CEOs. That means competitive compensation, but with strict qualifications and real consequences.

If you’re going to try to sit in Congress, let it be the result of a rigorous vetting process, not a popularity contest bankrolled by special interests. Tie their compensation with results for the state they represent — not how many votes they can wrangle from corporate PACs. And if they fail? Fire them. Revoke the seat. Enforce insider trading bans with teeth. And if corruption is proven? Lifetime bans from the stock market. This isn’t politics — it’s business logic.

The goal isn’t to make politicians rich. It’s to reduce their price tag—so that the public, not private interests, becomes their highest bidder.

It’s unreal how quickly we’re distracted by misdirection: headlines about raising taxes on the rich or the poor, or slashing programs with zero analysis of the ripple effects. This isn't leadership — it’s crisis theater. If a business ran this way, you'd fire the CEO. It doesn’t take more money to fix waste and mismanagement. It takes clearing the board.

The government is great at taking the reservation, but clearly doesn’t know how to hold the reservation. #IYKYK

Yes, officials can be expelled: Article I, Section 5 of the U.S. Constitution allows each House to oust members with a two-thirds vote. It’s rare — but it exists. If we want to take the deficit seriously, maybe it’s time we started using the tools already in place.

🧠 Yes, some of this might sound idealistic. Asking for performance pay in Congress? Sunset clauses? Voter-enforced accountability? In the world of D.C. dealmaking, these ideas might be laughed out of the room. Even Gordon Gekko would probably roll his eyes and tell me, “Idealism kills every deal.”

But here’s the thing: we’ve tried cynicism. We’ve tried short-termism. We’ve tried pretending dysfunction is just the cost of doing business. And now we’re staring down trillion-dollar deficits and generational gridlock.

If the smart money says change isn’t realistic, maybe it’s time we stop listening only to the smart money.

💬 Final Thought

AI is here. And we should be aware: as it grows in intelligence and reach, we must collectively demand that it doesn’t exempt those in power from scrutiny.

In the Hulu series “Class of ’09” the first thing the government does when agreeing to introduce AI oversight is exempt itself from investigation. It’s fictional — but eerily familiar. Because if public servants can write themselves out of the rules, what hope is there for real reform?

We don’t need more budget tricks — we need structural accountability.
Because if AI ever truly begins rooting out corruption, the first thing it may flag is the people who made sure they couldn’t be flagged at all.

🚨 Call to Action

There are people who hold power today who are completely out to lunch, recycling the same tired ideas that got us here in the first place. BMG isn’t one of them.

If you're serious about building your financial future — retirement planning, portfolio alignment, or just understanding how today’s policy ties into your tomorrow — reach out.
We're here for clients who want to make better long-term decisions, not just ride out the headlines.

Invest with intention. Plan with purpose. Demand better.

This content is intended for informational and educational purposes only and should not be construed as financial, investment, or legal advice. References to specific companies or sectors are for illustrative purposes only and do not constitute a recommendation or solicitation to buy, sell, or hold any security. Investing involves risk, including the risk of loss. Always conduct your own due diligence and consult with a qualified advisor before making any investment decisions.

Disclosure: BMG may currently hold a position in Axon Enterprises ($AXON).