Feeds:
Posts
Comments

Archive for the ‘Sleaze’ Category

In some sense, there’s nothing remotely funny about the IRS’s targeting of Tea Party organizations.

It is disgusting that a powerful arm of the government became a corrupt vehicle for illegal partisan politics.

But it’s better to laugh rather than cry, so let’s enjoy this new video from Remy at Reason TV.

And let’s not forget that the IRS rewarded itself with big bonuses after the scandal!

President Obama infamously claimed there wasn’t a “smidgen” of corruption at the IRS. This Glenn Foden cartoon is the only appropriate response.

P.S. Switching to another topic, I explained recently that the left was wrong about unemployment insurance. The statists told us that paying people to be unemployed wouldn’t increase joblessness, but virtually all the evidence is on the other side.

Now we have even more research emphasizing that point. Here’s a blurb from some new research published by the St. Louis Federal Reserve.

…we find that the extension of unemployment benefits affected the labor market status of long-term unemployed workers in late 2013. Without extended UI benefits, these unemployed workers would have been more likely to be employed, more likely to exit the labor force, and on average 1.9 percent less likely to remain unemployed in the following period. In short, our simulated early termination of the EUC program lowered the unemployment rate by 3 to 5 basis points, suggesting that the December 2013 expiration of the EUC program might have slightly lowered the unemployment rate in early 2014.

However, since most leftists are not very literate about economics, let’s simplify the issue. Maybe they can understand some cartoons. Here are some options from Michael Ramirez, Robert Gorrell, and Chuck Asay, as well as a great Wizard-of-Id parody.

Read Full Post »

The internal revenue service has allowed itself to become a tool of the White House. To be more specific, bureaucrats at the tax-collection agency sought to undermine a free and fair political process by stifling political speech. And now the IRS is lying about its activities and trying to cover its tracks.

This should be deeply horrifying to all Americans, regardless of political affiliation or philosophy.

Particularly since the partisan Democrat appointed by Obama to head the IRS refuses to even apologize for the agency’s rogue behavior.

There are several appropriate responses to the IRS scandal, including some genuine budget cuts. But you probably won’t be surprised to learn that some people think the IRS instead should be rewarded with even more money.

Here are some excerpts from a column in today’s Washington Post.

…this is an especially strange time to stick up for the agency, given the suspicious disappearance of a few thousand key e-mails that Congress wants to see. But right now, the IRS desperately needs a champion. …the IRS has been laboring…with fewer resources. Since 2010, when Congress first began hacking away at discretionary spending, the bureau’s funding has fallen 14 percent, in inflation-adjusted terms… These cuts have come even though the agency’s responsibilities and workload have increased, thanks to new laws such as the Affordable Care Act and the Foreign Account Tax Compliance Act… Now House Republicans want to hobble it even more. Last week, the House Appropriations Committee voted to slash the bureau’s budget by another $340 million.

It’s true that both Obamacare and FATCA grant new powers and obligations to the IRS, but we can solve that problem by repealing those misguided laws.

But since that won’t happen while Obama is in the White House, let’s consider whether “fewer resources,” “hobble,” and “hacking away” are accurate ways of describing what’s been happening to the IRS’s budget.

The Office of Management and Budget has detailed tables showing spending by agency. And if you look at the administrative portions of IRS spending (culled from lines 2491-2533 of this massive database), it turns out that spending has increased dramatically over time.

Yes, it’s true that IRS spending has declined slightly since 2010, but the agency’s budget is still about twice as big as it was 30 years ago. And these numbers are adjusted for inflation!

In other words, it’s very misleading to focus merely on the post-2010 budgetary data (just as Krugman was being deceptive when he looked only at post-2007 data when writing about Estonia’s economic performance).

Looking at the historical data reveals that the IRS budget is much bigger than it’s been in the past.

There are a couple of additional points in the column that deserve some attention. The author argues that people who care about the budget deficit should be delighted to give more money to the IRS because it produces a “darn good return on investment.”

If you care about narrowing the budget deficit — as Republicans generally say they do — gutting your chief revenue- collection agency makes little sense. …The IRS generates way more money than it spends, after all. For every dollar appropriated to the IRS in the 2013 fiscal year, the agency collected $255, according to the national taxpayer advocate’s office. That’s a darn good return on investment.

Wow, what a scary mindset. Based on this thinking, why don’t we simply give the government carte blanche to seize our bank accounts? After all, they could probably collect hundreds of thousands of dollars for every dollar spent. That would be an even better “return on investment.”

As an aside, this is an example of why I get so agitated when supposed fiscal conservatives focus on deficits and debt. It creates an opening for people who want to push bad policy. But if you focus on the real problem of government spending, that problem disappears.

But I’m digressing. Let’s get back to the column. There’s one other point that cries out for correction. The author claims that a bigger IRS budget will reduce tax evasion and that this will keep tax rates from going higher.

Some of that money comes from going after tax cheats, and…rampant tax evasion has a tendency to drive statutory tax rates higher so that the government can extract more money from those poor saps still obeying the law.

The only problem with this assertion is that it is grossly inconsistent with the facts.

We have very powerful evidence that politicians lowered tax rates during periods when there were substantial flows of money to so-called tax havens.

Why? Because they felt competitive pressure to implement less onerous tax rates in order to keep even more money from escaping.

And now we have strong evidence that tax rates are going up as opportunities to escape bad tax policy have decreased.

Why? Because the politicians now feel that taxpayers have fewer escape options.

To summarize this post, the IRS needs and deserves more money in the same way that Charles Manson needs and deserves a group hug.

Here’s one last bit of humor to augment the cartoons I’ve already included. It’s PG-13, so don’t read too closely if you get easily offended.

P.S. Wouldn’t it be wonderful if we could junk the tax code and replace it with a simple and fair flat tax? That would eliminate almost every possible conflict with the IRS and also take away the agency’s discretionary power.

Not a bad fantasy to have, at least for a policy wonk.

Read Full Post »

I’ve posted more than 3,500 items since I started International Liberty. And if you look at the earliest posts, way back in April of 2009, you’ll find that one of the very first of them made the link between big government and big corruption.

My premise was very simple. When government is very large, with all sorts of power to provide unearned wealth via taxes, spending, and regulation, then you will get more sleaze.

Sort of like the way a full dumpster will attract lots of rats and roaches.

A story in Fortune reports that government corruption at the state level is very costly.

…corruption is everywhere, in one form or another. And it’s costing U.S. citizens big time. A new study from researchers at the University of Hong Kong and Indiana University estimates that corruption on the state level is costing Americans in the 10 most corrupt states an average of $1,308 per year… The researchers studied more than 25,000 convictions of public officials for violation of federal corruption laws between 1976 and 2008 as well as patterns in state spending to develop a corruption index that estimates the most and least corrupt states in the union.

Most Corrupt StatesHere’s the list of the 10-most corrupt states. At first glance, there doesn’t seem to be a pattern.

Southern states are over-represented, it appears, but that’s obviously not an overwhelming factor since Georgia, South Carolina, Arkansas, and Texas (among others) didn’t make the list.

But it turns out that there is a factor that seems to be very prevalent among corrupt states.

The researchers also found that for 9 out of the 10 of the most corrupt states, overall state spending was higher than in less corrupt states (South Dakota was the only exception).

The authors suggest an attack on corruption could lead to a lower burden of government spending.

Attacking corruption, the researchers argue, could be a good way to bring down state spending.

I don’t disagree, but I wonder whether there’s an even more obvious lesson. Maybe the primary causality goes the other direction. Perhaps the goal should be to lower state spending as a way of reducing corruption.

Returning to the analogy I used earlier, a smaller dumpster presumably means fewer rats and roaches.

That’s not the only interesting data from the study. Fortune also reports that infrastructure projects and bloated bureaucracies are linked to corruption.

The paper explains that construction spending, especially on big infrastructure projects, is particularly susceptible to corruption… Corrupt states also tend to, for obvious reasons, simply have more and better paid public servants, including police and correctional officers.

I’m not surprised by those findings. Indeed, I would even argue that a large bureaucracy, in and of itself, is a sign of corruption since it suggests featherbedding and patronage for insiders.

For more info on the size of government and corruption, here’s a video I narrated for the Center for Freedom and Prosperity. It’s several years old, but the message is even more relevant today since the public sector is larger and more intrusive.

P.S. Speaking of corruption, there’s actually a serious effort on Capitol Hill to shut down the Export-Import Bank, which has been a cesspool of corruption and cronyism.

P.P.S. Switching to a different topic (though it also fits under corruption), we have another member for our potential Bureaucrat Hall of Fame. Or maybe this person belongs in a politician-ripping-off-the-system Hall of Fame.

Here are some of the details from an Irish news report and you can judge for yourself.

Ireland’s outgoing European Commissioner, Maire Geoghegan-Quinn, is entitled to a total €432,000 EU pay-off over the next three years to help her adjust to life after Brussels. …EU commissioners leaving office are entitled, subject to certain conditions, to a “transitional allowance” over three years varying between 45pc and 65pc of salary. Mrs Geoghegan-Quinn’s entitlement amounts to 55pc of her salary, or €137,000 per year.

Huh?!? A transitional allowance? For what? That’s more than $500,000 in American money.

Is it really that difficult to end one’s term as an overpaid European Union Commissioner?

But what really makes Ms. Geoghegan-Quinn an inspiration to other bureaucrats (and a nightmare for taxpayers) is that she’ll also have her snout buried deeply in Ireland’s public trough.

And from this autumn, she can also resume collecting her Irish TD and ministerial pensions totalling €108,000 a year – giving her total pension entitlements worth over €3,000 a week.

Though to be fair, she’s simply doing what other politicians already have done. Not only in Ireland, but also in America.

Government has become a racket for the benefit of insiders.

Read Full Post »

When I wrote recently that the IRS was corrupt, venal, and despicable, I didn’t realize that I was bending over backwards to be overly nice.

Every new revelation in the scandal shows that the agency is beyond salvage.

Writing for Real Clear Markets, Diana Furchtgott-Roth of the Manhattan Institute is appropriately skeptical of the IRS.

Coincidentally, Lerner’s computer crashed 10 days after Congress expressed concern about possible targeting of conservative groups. Emails between January 2009 and April 2011 were lost. Her computer is not available for examination, because it has already been recycled by the IRS. In a further coincidence, or not, a backup tape of agency emails made by the IRS was erased after 6 months. …As Georgia Republican Rep. Doug Collins said, the story sounds more and more implausible.

Diana then explains why this matters, using Obamacare as an example of why we should worry about a corrupt and politicized IRS.

Why should we care about missing emails from 2009 to 2011? As former Secretary of State Hillary Clinton said in a 2013 hearing about Benghazi, “What difference at this point does it make?” It is not just that Americans’ basic trust in the IRS is being called into question. Over the past five years the IRS has been concentrating its power, giving the agency increased opportunities to pick on people and groups it dislikes. …Sarah Hall Ingram, who was commissioner of the IRS’s Tax-Exempt and Government Entities Division from 2009 to 2012 during the Lois Lerner scandal, now heads the IRS Affordable Care Act Office. …Do Americans trust the IRS to calculate these subsidies and refunds impartially? The IRS already made a power grab in May 2012 by extending premium subsidies to the 34 states with federal exchanges.

She also points out that the IRS is carrying water for the President’s attempt to stifle opposing views.

…the IRS proposed regulations that would allow the agency to regulate the free speech of President Obama’s political opponents, while leaving the political activities of his friends untouched. …The regulations were targeted at tax-exempt organizations that file under 501(c)(4) of the IRS code… Under the new rules these groups would not be allowed to engage in voter education that mentions a candidate within two months of a general election or one month of a primary. Left untouched by the proposed regulations were unions, which file under 501(c)(5) of the Internal Revenue Code.

Stan Veuger of the American Enterprise Institute also is not persuaded by the IRS’s deceitful excuses.

The Internal Revenue Service (IRS) and the administration have consistently spouted lies and half-truths about the IRS scandal. The latest development in the controversy is that crucial emails have conveniently gone missing – is there any reason to believe that it is, as the administration claims, a mere accident? …This effort to keep conservative 501(c)(4) organizations from attempting to prevent president Obama’s reelection was, of course, hidden from the public. Ms. Lerner was careful to try and structure the IRS’ targeting in such a way that would not be appear to be a “per se political project,” in her own words, and denied in meetings with, and letters to, congressional oversight staff in 2012 that conservative groups were treated exceptionally or that the IRS’ ways of evaluating 501(c)(4)s had ever changed. The claims were false… In her response to a planted question from the audience at an American Bar Association tax conference, Ms. Lerner blamed the targeting of conservative groups on “our line people in Cincinnatti.” This has also turned out to be false. …non-Tea Party groups were never subjected to the same delays and investigations as Tea Party groups were. This once more suggest that obfuscation and dishonesty were central to the IRS’ approach to their targeting practices.

He even crunches some numbers to show that the claims from the IRS are utterly implausible.

It would be very helpful to see what communications took place between IRS officials and other Democrats. And this is where the missing emails come in. …They are gone, they now tell us, hard drives crashed and tapes were erased. Should we believe that? Of the 82 IRS employees tied to the targeting operation, 7 had their email disappear, or 8.5%. According to IRS commissioner John Koskinen, the industry standard is 3 to 5%. Under reasonable statistical assumptions, that makes the IRS scandal disappearance rate about as likely as the emails having been eaten by unicorn, with a probability far smaller than 1%. Given the IRS’ track record in this affair, that is way beyond anything that would justify giving the IRS and Lois Lerner the benefit of the doubt.

Amazingly, 12 percent of Americans believe the IRS. Here’s some polling data that Phil Kerpen shared on his twitter feed.

I’m particularly happy that younger people are more skeptical. They’re more tech-savvy and realize that the IRS’s excuses are a bunch of….well, a bunch of stuff that comes out of male cows.

And here are some good cartoons on the topic, starting with Eric Allie’s gem.

I like how he includes a representative of the 12 percent of deliberately gullible Americans.

And here’s another contribution from Allie.

And here’s Steve Kelley’s cartoon on the topic.

He’s right, needless to say. It would be better if the IRS was merely squandering money rather than seeking to subvert the democratic process.

Last but not least, here’s an evergreen cartoon about the IRS from Glenn McCoy.

Oh, and let’s not forget two other items.

The political hack who now heads the IRS is a partisan leftist.

IRS Commissioner John Koskinen contributed more than $85,000 to Democratic candidates and committees…with a $5,000 donation to President Obama in 2012 and $19,000 to the Democratic National Committee from 1988 to 2008.

And the political hack who was forced out of the IRS actually wanted to target a US Senator.

…the Internal Revenue Service’s (IRS) targeting of conservative individuals includes a sitting United States Senator. According to emails reviewed by the Committee under its Section 6103 authority, …Lois Lerner sought to have Senator Chuck Grassley (R-IA) referred for IRS examination.

There are more horror stories to share, but this is enough for one day.

Suffice to say, you can understand why my fantasies involve tax reform rather than supermodels.

P.S. I can’t resist one more comment. Don’t forget that the corrupt and partisan IRS is in charge of Obamacare enforcement, but the bureaucrats want to be exempt from that government-run healthcare system. Just like politicians.

The moral of the story: Washington is even worse than you think. It’s a racket for insiders, but a burden for the rest of us.

Read Full Post »

Some statements are so lame that they now serve only as punch lines.

Nobody, after all, would ever claim to a teacher that “the dog ate my homework.”

Moreover, surely few if any people ever actually assert to bill collectors that “the check is in the mail.”

And I have to imagine that no guy would be dumb enough to think a girl would fall for the line that “I’ll still love you in the morning.”

But we now have a new champion in the contest for the most laughable and pathetic assertion ever made.

But first some background. Congressional investigators have been trying to figure out the level of criminality and malfeasance in the IRS’s campaign to interfere with the 2012 election by targeting Tea Party groups. Much of the attention has focused on the activities of Lois Lerner, a left-wing ideologue at the center of the scandal.

And it is because of this investigation that we have a winner in the most-preposterous excuse contest. The political hacks at the IRS are now claiming, with straight faces, that they can’t turn over thousands of emails sent and received by Lois Lerner because of a “computer mishap.”

Here’s some of what’s been reported by the Washington Times.

The IRS has told Congress that it has lost some of former employee Lois G. Lerner’s emails from 2009 through 2011, including those she sent to other federal agencies… Rep. Dave Camp, chairman of the Ways and Means Committee, said he was stunned… “The fact that I am just learning about this, over a year into the investigation, is completely unacceptable and now calls into question the credibility of the IRS’s response to congressional inquiries,” Mr. Camp said. “There needs to be an immediate investigation and forensic audit by Department of Justice as well as the Inspector General.” …the emails lost were “critical years” from the beginning of the targeting of conservative groups.

At this point, I suppose I should acknowledge that there’s an infinitesimally tiny chance that the IRS is being honest. Maybe, just maybe, the IRS’s immense computer infrastructure and multiple levels of redundant back up happened to fail. And, by an amazing coincidence, they can recover everything except the emails from Lois Lerner that were sent at precisely the time she was instrumental in the IRS’s harassment campaign.

Yeah, right, there’s a chance the IRS is being honest. Just like the Nixon White House could have accidentally erased 18-1/2 minutes of tape.

That being said, there’s a chance I’ll be playing center field next month for the New York Yankees. And an even bigger chance that the models from Victoria’s Secret will invite me for a weekend orgy (and just in case the Princess of the Levant is reading this, I naturally would say no).

Let me now detour into the world of public policy.

The IRS’s venal and corrupt behavior is only possible because the tax code is a Byzantine nightmare of about 75,000 pages. And that doesn’t even include all the tax court decisions and IRS letter rulings that also govern the internal revenue code.

It is this thicket of special-interest sleaze that enables hacks like Lois Lerner to wield unjustified power.

So if we want to actually reduce the chances of similar malfeasance in the future, then action is needed.

But I’m not just talking about prison for the crooks who tried to misuse the power of government.

We also need to rip up the internal revenue code and replace it with a simple and fair flat tax.

As you can see in this video, I’m mostly a fan of tax reform because it will help the American economy. But I’m also delighted the flat tax will reduce the discretionary power of politicians and bureaucrats.

In the long run, of course, it would be even better if we shrank the federal government so much that we didn’t need any broad-based tax of any kind.

 

Read Full Post »

No matter how much I pontificate about Washington corruption, there’s no way I can get across the true extent of the DC establishment’s self-serving behavior.

Washington is rich because government is big and the beneficiaries of this system are enjoying their status as America’s new gilded class.

It’s even gotten to the point where children and other family members also put their hands in the cookie jar.

I guess we can call this a system of hereditary corruption. Heck, maybe we can even create hereditary titles for this new elite. The Duke of Pork. The Earl of Sleaze. The Marquise de Cronyism.

Just in case you think I’m exaggerating, check out these blurbs from a Daily Beast article.

Connected children of political families catching a break is something we Americans are plenty used to—there would be no Kennedy or Bush dynasties without the public’s acceptance… But it might be that Americans are less aware of political family power plays when they’re not accompanied by gripping and grinning and kissing our babies for cameras and votes. …“Members of Congress basically are profit centers for their entire families,” says Melanie Sloan, Executive Director of Citizens for Responsibility and Ethics in Washington.

The article cites examples of this unseemly process.

Nathan Daschle, son of former Senate majority leader Tom Daschle, …did a stint at a D.C. firm before heading to the Democratic Governor’s Association (where he eventually served as Executive Director), and now works for Clear Channel Media as its Executive Vice President for Political Strategy. …then there are the lobbyists—that professional amalgam of business and politics—the litany of which reads something like an Old Testament family tree. There’s Andy Blunt, son of Senator Roy Blunt and brother of former governor Matt Blunt; Andrew Coats, son of Senator Dan Coats; Scott Hatch, son of Senator Orrin Hatch; David Roberts, son of Senator Pat Roberts; Shantrel Brown Fields, daughter of Rep. Corinne Brown; Giliane Carter, daughter of Representative John Carter; Sean King, son of Rep. Peter King; Clark Mica, son of Rep. John Mica.

As you might expect, this incestuous system produces spectacular examples of wasteful and counterproductive spending.

…sometimes there is trouble in the paradise where business and politics and family meet. There’s the case of Brad Enzi, son of Mike, Senator from Wyoming. Enzi the younger has been overseeing the building of the Two Elk Power Plant in Wyoming for North American Power Group. …Senator Enzi pushed for Department of Energy funds to go towards clean coal research projects in his state and Brad Enzi’s company benefitted from them; it received nearly $10 million in funding to drill a well to study the site surrounding the plant, and Enzi himself earned $128,000 in compensation from the federal money. …Chaka Fattah Jr., son of Pennsylvania Congressman Chaka Fattah, has similarly felt the double-edged blade of intertwining family, business, and political ties. The management consulting company he founded was paid $450,000 by an education firm with lucrative contracts with the Philadelphia City School District—turns out Chaka’s father requested a $375,000 earmark for the firm from a 2009 transportation bill. Both father and son are currently under federal investigation.

Keep in mind, by the way, that these examples are just the tip of the iceberg.

For every bit of scandal and pork that gets publicized, you can be confident that there are hundreds of equally sordid deals that haven’t been exposed.

For all intents and purposes, big government in Washington has created a niche market for insiders who learn the specialized skill of transferring money from those who earned it to those with political pull.

And these insiders pass along this “skill” to their children.

…a hereditary specialized group of people who perform certain necessary social functions and because they have families, they’re going to gradually monopolize the functions they perform.” And in 2014, the place that’s increasingly being chosen as a place to call home by American “elites” happens to be Washington, D.C. The city’s greater metropolitan area boasts the largest number of “Super Zips”—those areas with the highest combined wealth and level of education—in the country.

They get the “super zips” while the rest of the country is treated as “super chumps.”

No wonder the Washington metropolitan area is now the richest part of the United States.

If that sounds like we’re becoming Argentina or some other cesspool of cronyism, then you understand the problem.

By the way, none of this should be interpreted to suggest that parents shouldn’t try to help their kids. Or even to give them some help joining the family business. That’s a normal part of life.

The problem exist when the “family business” is big government and income is obtained by facilitating the coercion and oppression of other people.

In a genuinely free market, by contrast, you get rich by serving other people.

P.S. Some people argue that the solution is to ban family members from lobbying or to otherwise impose restrictions on the political process. But until you deal with the underlying problem of Washington being a favor factory, all of these efforts will be akin to playing whack-a-mole.

This video explains.

P.P.S. On a totally separate issue, it appears that our right to keep and bear flamethrowers has been eroded in North Dakota.

Here are some excerpts from a Fargo news report.

Local resident Todd Fox has been detained for “reckless endangerment” and “illegal use of high-powered fire-breathing weaponry” for attacking snow with his flamethrower. …Fox stated that he was simply “fed up with battling the elements” and that he did not possess the willpower necessary to move “four billion tons of white bull [expletive deleted].” Police say that Fox surrendered his efforts immediately upon their arrival and that his front yard “looked like a hydrogen bomb had gone off.” They think he was just happy to be done with snow removal, even if it did mean a trip to jail.

I have two reactions to this story.

First, does Fargo really have a local ordinance governing the use of “high-powered fire-breathing weaponry”? I’m skeptical.

Second, isn’t this a great country? There probably aren’t many places in the world where citizens are allowed to own flamethrowers. Makes me proud to be American.

And we’re even allowed to own tanks and machine guns.

On the other hand, we do have a problem letting children possess pencils and pop tarts, so we obviously have some flaws to fix.

Read Full Post »

Last year, while writing about the sleazy and self-serving behavior at the IRS, I came up with a Theorem that explains day-to-day behavior in Washington.

It might not be as pithy as Mitchell’s Law, and it doesn’t contain an important policy prescription like Mitchell’s Golden Rule, but it could be the motto of the federal government.

Simply stated, government is a racket that benefits the DC political elite by taking money from average people in America

I realize this is an unhappy topic to be discussing during the Christmas season, but the American people need to realize that they are being raped and pillaged by the corrupt insiders that control Washington and live fat and easy lives at our expense.

If you don’t believe me, check out this map showing that 10 of the 15 richest counties in America are the ones surrounding our nation’s imperial capital.

Who would have guessed that the wages of sin are so high?

But even though the District of Columbia isn’t on the list, that doesn’t mean the people actually living in the capital are suffering.

Here are some interesting nuggets from a report in the Washington Business Journal.

D.C. residents are enjoying a personal income boom. The District’s total personal income in 2012 was $47.28 billion, or $74,733 for each of its 632,323 residents, according to the Office of the Chief Financial Officer’s Economic and Revenue Trends report for November. The U.S. average per capita personal income was $43,725.

Why is income so much higher? Well, the lobbyists, politicians, bureaucrats, interest groups, contractors, and other insiders who dominate DC get much higher wages than people elsewhere in the country.

And they get far higher fringe benefits.

In terms of pure wages, D.C., on a per capita basis, was 79 percent higher than the national average in 2012 — $36,974 to $20,656. …Employee benefits were 102 percent higher in D.C. than the U.S. average in 2012, $7,514 to $3,710. Proprietor’s income, 137 percent higher — $9,275 to $3,906. …The numbers suggest D.C. residents are living the high life.

Now let’s share a chart from Zero Hedge. It uses median household income rather than total personal income, so the numbers don’t match up, but what’s noteworthy is how DC income grew faster than the rest of the nation during the Bush years and then even more dramatically diverged from the rest of the country during the Obama years.

In other words, policies like TARP, the fake stimulus, and Obamacare have been very good for Washington’s ruling class.

Want some other concrete examples of profitable Washington sleaze? Well, here are some excerpts from Rich Tucker’s column for Real Clear Policy.

The real place to park your money is in Washington, D.C. That’s because the way to get ahead isn’t to work hard or make things; it’s to lobby Washington for special privileges. Look no further than the sweet deal the sugar industry gets. It’s spent about $50 million on federal campaign donations over the last five years. So that would average out to $10 million per year. Last year alone, the federal government spent $278 million on direct expenditures to sugar companies. That’s a great return on investment.

Big Corn may get an even better deal than Big Sugar.

Then there’s ethanol policy. Until 2012, the federal government provided generous tax credits to refiners that blended ethanol into gasoline. In 2011 alone, Washington spent $6 billion on this credit. The federal government also maintains tariffs (54 cents per gallon) to keep out foreign ethanol,and it mandates that tens of billions of gallons of ethanol be blended into the American gasoline supply. Nothing like a federal mandate to create demand for your product. How much would you pay for billions of dollars worth of largesse? Well, the ethanol industry got a steep discount. In 2012, opensecrets.org says, the American Coalition for Ethanol spent $212,216 on lobbying.

Rich warns that the United States is sliding in the wrong direction.

What makes Washington especially profitable is that its only products are the laws, rules, and regulations that it has the power to force everyone else to follow. …we seem to be sliding toward what the authors term “extractive” institutions. That means government using its power to benefit a handful of influential individuals at the expense of everyone else.

And let’s not forget that some people are getting very rich from Obamacare while the rest of us lose our insurance or pay higher prices.

This Reason TV interview with Andrew Ferguson explains that there is a huge shadow workforce of contractors, consultants, and lobbyists who have their snouts buried deeply in the public trough.

I particularly like his common sense explanation that Washington’s wealth comes at the expense of everyone else. The politicians seize our money at the point of a gun (or simply print more of it) to finance an opulent imperial city.

So if you’re having a hard time making ends meet, remember that you should blame the parasite class in Washington.

P.S. The insider corruption of Washington is a bipartisan problem. Indeed, some of the sleaziest people in DC are Republicans.

P.P.S. Though scandals such as Solyndra show that Obama certainly knows how to play the game.

P.P.P.S. Making government smaller is the only way to reduce the Washington problem of corrupt fat cats.

Read Full Post »

Older Posts »

Follow

Get every new post delivered to your Inbox.

Join 2,464 other followers

%d bloggers like this: