There's really two problems here. The first is that they've not got the budget constraint right. Because wealth, or capital, isn't the budget constraint: income is.

This is the default budget constraint for our single parent example family. In the graph gross earnings (at an assumed net wage of £4.95 per hour) is measured along the x-axis and net income ...

This paper attributes shortages of goods in socialist economies to the soft financial constraints that firms in such economies face. A "soft budget constraint" problem arises when the state bank is ...

Deputy Health Minister Joe Phaahla said that the budget constraints, particularly in human resources, were the main contributor to problems at state facilities and must be addressed urgently.