Jeff Chapman Eisnaugle is a sharp and skilled business broker who has been educated thoroughly in many different aspects of business over the past many years of his career. He says that the best businesses are ones that have a solid and firm foundation and understanding of the theory of economics and finance. Typically, there are three areas of finance that are focused on the most in the business world, corporate, personal, and public finance. Each one is useful in its own right, but public finance will be the focus of this material.
Public finance is usually described as relating to the sovereign states and provinces, including government funded institutions such as a school district or a public park. It is usually concerned with issues such as identifying what capital will be needed in order to sustain a public sector entity like the maintenance on a playground. They would also focus on where this kind of capital would be obtained, as well as a good budget plan that would assure that they don’t overreach their capital stream but still meet all of their goals and standards of quality. Public finance is often one of the most difficult aspects of finance because it deals with institutions that innately are not designed to produce profits. This means that all of the capital used in order to sustain a public entity must be acquired from government systems or usually banks and other financial lending institutions. These public entities are usually paid by the tax payer, but that is often inadequate to run the facility in a proper manner that is up to standard with certain regulatory laws, which is where entities like banks and Federal Reserve System come into play.
Jeff Chapman Eisnaugle says that though public finance is the least studied of the three finance fields in relation to business, it is still important to understand the system to get a good grasp of how finance functions overall. The reason that public finance exists is because there are certain things that flourish better when the idea or profiting is removed from the equation. The word public itself means readily available to everyone, also known as, free. However, any experienced businessman knows that nothing is truly free, and everything comes at a cost.
Public finance deals with finding ways to pay for and cover these costs while still functioning as an independent entity (Jeff Chapman Eisnaugle) that is owned by everyone collectively. A great example of a public asset would be a State Park in your local community. This park will be free to everyone, and is maintained by the local government using a portion of the resident’s tax dollars in order to keep the facility well-staffed and up to standard code for the animals that inhabit it and the people who visit it. Public finance is important to understand because it gives you a better understanding of the importance of pooling your money, and how a proper financial foundation can make anything stand if done properly. Public finance is also often known as the most difficult field, because you have to learn how to do much with very little.
Jeff Chapman Eisnaugle 