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Posts Tagged ‘Bureaucrats’

Which nation has the most costly bureaucracy?

Well, if the answer is based solely on how much it costs to employ bureaucrats, you can see from this chart that Denmark comes in first place.

As an American taxpayer, I’m glad to learn that there are other nations that squander more money on civil servants.

But I get the feeling that the crowd in Washington is miffed that the United States didn’t wind up at the top of the list.

I’m being satirical, of course, but that’s what came to mind because is seems that our political masters are doing everything possible to waste money on needless bureaucracy.

For instance, here are some disturbing details for a report published by CNBC.

The federal government has a serious problem keeping tabs on its employees, from an FCC worker watching porn while at work, to DHS employees collecting overtime pay to sit on Netflix or talk on the phone. And now, a new report from the Patent and Trademark Office found that at least 19 paralegals have been getting paid $60,000 to $80,000 a year to sit on Facebook, online shop and watch TV — costing taxpayers about $5.1 million in the last four years. Even more egregious — the auditors said managers looked the other way and billed the hours under “other time” while also giving each of the workers thousands of dollars worth of performance bonuses during that same time period. The managers “were completely aware of the volume of ‘other time’ hours during the relevant time frame and took little action to prevent such waste,” the IG said. The auditors said one manager even dubbed the billing code the “I don’t have work but I’m going to get paid code.” …The report said “nonproductive time” racked up to between 50 and 70 hours in an 80-hour pay period.

But let’s be fair to the bureaucrats.

The story says they were goofing off because nobody gave them any work.

Whistleblowers told auditors that the paralegals just didn’t have enough work to do, so they spent their time doing other things — some even volunteered for charity organizations while clocked in at the Patent and Trademark Office. …whistleblowers said the paralegals rely on judges to assign them work and there weren’t enough judges on staff to assign new cases.

Or maybe the judges are lazy and inefficient, which is not exactly an unknown trait inside government.

In any event, the most outrageous part of the story is that the bureaucrats at the Patent and Trademark Office were given thousands of dollars in performance bonuses. For what?!? Doing a superlative job of watching TV?!?

Though I must admit this isn’t as bad as the bureaucrats at the Veterans Administration, who gave themselves bonuses while letting veterans languish and die on secret waiting lists.

And to add insult to injury, the bureaucrats at the Patent and Trademark Office (and their lazy and inefficient bosses) work at a luxurious new taxpayer-financed “campus” in suburban Virginia.

As the old saying goes, nice work if you can get it.

Though “work” is obviously a gross overstatement.

The bottom line is that we have a bureaucracy that is far too big and costs far too much.

P.S. Not only does Denmark have the most expensive bureaucrats, it’s also home to “Lazy Robert,” who is a proud member of the Moocher Hall of Fame (and doubtlessly also a passenger on the Party Boat).

P.P.S. I’ve shared more anti-libertarian humor than pro-libertarian humor, so it’s time to impose some balance. Here’s something I just saw on Twitter.

Needless to say, Obama hasn’t exactly been a civil libertarian on surveillance issues.

P.P.P.S. And speaking of humor, the PotL just send me this video from her region of the world.

There’s no political angle, of course, but it fits in with some of the other terrorism-related humor I’ve shared.

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Since I’ve already created a Moocher Hall of Fame to acknowledge the strangest and most reprehensible examples of government dependency, it’s occurred to me that there also should be a Bureaucrat Hall of Fame to highlight the government employees that have figured out how to most successfully rip off taxpayers (and here are some good candidates for charter membership).

But what if an entire bureaucracy was eligible?

The paper pushers at the Veterans Administration sure have figured out how to milk the system. Check out these excerpts from Associated Press report.

Nearly 80 percent of senior executives at the Department of Veterans Affairs got performance bonuses last year despite widespread treatment delays and preventable deaths at VA hospitals and clinics, a top official said Friday. …Workers at the Phoenix VA Health Care System — where officials have confirmed dozens of patients died while awaiting treatment — received about $3.9 million in bonuses last year, newly released records show. The merit-based bonuses were doled out to about 650 employees, including doctors, nurses, administrators, secretaries and cleaning staff.

This is such an outrageous waste of money that even the politicians who created it feel it should be criticized.

Rep. Jeff Miller, R-Fla., chairman of the House Veterans Affairs Committee, said the VA’s bonus system “is failing veterans.” Instead of being given for outstanding work, the cash awards are “seen as an entitlement and have become irrelevant to quality work product,” Miller said. Rep. Phil Roe, R-Tenn., said awarding bonuses to 80 percent of executives means that the VA was setting the bar for performance so low that “anybody could step over it. If your metrics are low enough that almost everybody exceeds them, then your metrics are not very high.” Rep. Ann McLane Kuster, D-N.H., said the VA suffered from “grade inflation, or what (humorist) Garrison Keillor would refer to as ‘all of the children are above average.'” Kuster and other lawmakers said they found it hard to believe that 80 percent of senior employees could be viewed as exceeding expectations, given the growing uproar over patients dying while awaiting VA treatment and mounting evidence that workers falsified or omitted appointment schedules to mask frequent, long delays. …Miller, the panel’s chairman, noted that in the past four years, none of the VA’s 470 senior executives have received ratings of minimally satisfactory or unsatisfactory, the two lowest ratings on the VA’s five-tier evaluation system.

But the real lesson is that government simply doesn’t work very well

Or let me rephrase that. Government works very well…but only if you’re a politician, lobbyist, contractor, bureaucrat, or some other insider who has figured out that “the public sector” is a great way to obtain unearned wealth.

If you’re a taxpayer, by contrast, you get the short end of the stick (I was thinking of another analogy, but decided to keep things clean).

And if you’re someone – like a veteran – who is relying on government, then you’re in a very unfortunate position (sort of like the person in the other analogy that crossed my mind).

The main thing to understand is bureaucrats respond to incentives. And when you have government programs with no bottom-line reason to  deliver efficiency and good service, we shouldn’t be surprised that we get bloated payrolls and absurd compensation packages.

This video explains that it’s a government-wide phenomenon.

And to close out today’s column, here’s a Steve Kelley cartoon about Forrest Gump and the VA.

P.S. Don’t let politicians and interest groups get away with claiming that “inadequate funding” caused the VA scandal.

P.P.S. And grit your teeth because the government-run veterans health system is a good predictor of what we’ll all experience if the government-run Obamacare system is fully implemented.

P.P.P.S. Don’t forget that bonuses for poor performance are standard operating procedure in Washington. The bureaucrats at the IRS have been rewarded with extra cash notwithstanding all the scandals.

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I’ve explained on several occasions (here, here, and here) that we can be optimistic about the fight to preserve our rights to keep and bear arms.

Simply stated, politicians are increasingly scared to go after gun owners and we keep seeing more and more evidence that Second Amendment freedoms make society safer.

And courts are beginning to do a better job of upholding the Constitution. A recent example comes from Arizona, where the government was trying to simultaneously undermine both the First Amendment and Second Amendment.

The latest example comes from Arizona, where a pro-gun group won a legal fight to post notices about firearms training. A controversial gun-safety ad campaign is about to return to Phoenix, after the city lost its attempt to censor the project sponsored by a gun-safety training group, TrainMeAZ, LLC. The Goldwater Institute’s Scharf-Norton Center for Constitutional Litigation, which represented TrainMeAZ, LLC, was granted summary judgment for its client Thursday by the Arizona Court of Appeals, preventing Phoenix from blocking the ads. …Officials at the time told Alan Korwin, owner of TrainMeAZ, that the message was too controversial and had garnered a complaint, and so had to be removed or changed. …“Gun-rights advocates nationwide are fond of saying the Second Amendment protects the First Amendment, which is totally true,” Korwin said. “In this case, however, it’s the other way around — free speech and the First Amendment have protected our right to keep and bear arms, and in particular, our right to train our selves and our precious families in real gun safety.”

This is welcome news, particularly since the court ruled unanimously against the government’s attempt to censor.

P.S. Back in 2012, I shared an IQ test for criminals and liberals. The test had only one question, which was whether criminals would be more likely to rob the house of a gun owner or a anti-gun activist.

Here’s a humorous sign sent to me by the Princess of the Levant. I suspect it’s photo-shopped, but it’s nonetheless funny because there probably are people this stupid.

Gun Control Robbery Sign

And if you like this kind of humor, here are more examples.

P.P.S. While there have been some positive developments in the fight for firearms freedom, the news isn’t all positive. We continue to get jaw-dropping examples of anti-gun political correctness from government schools.

P.P.P.S. On a totally separate topic, I’ve already created a Moocher Hall of Fame, but I think I need to also set up a Bureaucrat Hall of Fame.

I already have a list of potential members, but there’s an overpaid drone at the Environmental Protection Agency who surely deserves to be one of the charter members.

Just how much porn does a person have to watch on their computer at work to get fired from the Environmental Protection Agency? Apparently two to six hours a day will let you hold onto your job….the employee confessed to spending, on average, between two and six hours per day viewing pornography while at work. Apparently, the employee, whose identity has not been revealed, earns about $120,000 a year and has still not been fired.

Though perhaps we should be applauding this bureaucrat. After all, if you look at some of the things EPA bureaucrats do when they’re “working” (see here, here, here, and here), the country may be safer if they spend more time watching porn.

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I’ve complained many times about government intervention in the financial sector.

The financial and housing crisis, for instance, was largely a consequence of the Federal Reserve’s easy-money policy, combined with the system of corrupt subsidies put in place by Fannie Mae and Freddie Mac.

But there’s another government-imposed cost that burdens the financial sector.

Writing for the Wall Street Journal, Paul Kupiec of the American Enterprise Institute reveals some very sobering – and disturbing – data on pay levels for both the financial industry and its regulators.

Most banks in this country are small businesses and pay employees modest salaries. The Bureau of Labor Statistics reports that the average annual salary of a bank employee was $49,540 in 2012, not much higher than the average annual across all occupations, $45,790.

In other words, there are some very well paid people working for big banks, but most employees in the financial sector earn modest incomes.

But notice that I wrote “most employees.” That’s because there is a big group that is very well paid.

But they aren’t in the business of making loans, allocating credit, and helping to finance future growth.

That’s because these highly compensated folks aren’t in the private sector. They are regulatory bureaucrats.

…one group in banking stands out as highly paid—federal bank regulators. Before the Dodd-Frank Act, the average employee of a federal bank regulatory agency received 2.3 times the average compensation of a private banker. By 2013 this ratio increased to more than 2.7—and in some cases considerably more.

Kupiec provides details on how these bureaucrats get paid much more than wealth creators.

The average compensation at the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corp. (FDIC) and the Consumer Financial Protection Bureau (CFPB) exceeded $190,000 in 2012. The staff at the Federal Reserve is likely even better compensated, but the Fed refuses to release employee salaries. You might think high-paying jobs at these agencies require special skills. Not so. At the OCC, secretaries make on average $79,182 per annum. Motor vehicle operators (the agency’s limo drivers) at the FDIC earn $82,130. Human resources management trainees at the CFPB make $110,759 a year. Averages tell only part of the story. In 2012, 68% of FDIC and CFPB staff—and 66% at the OCC—earned above $100,000 a year. Nearly 19% of the CFPB and OCC staff earn more than $180,000 a year. At the OCC, 10.5% of workers earn above $200,000 a year, at the FDIC 9.3%. Fewer than 7% of employees in any of these regulatory agencies earned less than $50,000. In other words, 93% of the employees in these federal bank regulatory agencies earned more than the average banker’s salary in 2012.

So what’s the rationale for overpaid bureaucrats?

Defenders of the status quo claim that high pay is necessary to attract skilled professionals.

Needless to say, that’s not true.

Instead of raising salaries to attract and retain employees for specialized, hard-to-fill jobs, federal bank regulatory agencies have increased the salaries of all employees. Ironically, the hard-to-fill jobs that require substantial education or professional experience—such as attorneys and economists with banking experience—have the smallest premiums over comparable private positions. Salary premiums are especially large for easy-to-fill jobs that require no specialized, hard-to-hire skills.

But here’s the bottom line. Consumers and taxpayers are paying higher fees and receiving fewer benefits because so much money is being diverted from the industry to finance the bureaucracy.

Who pays for these generous salaries? Bank shareholders pay directly through insurance premiums on deposits and examination fees levied by the bank regulatory agencies. These costs are passed on in higher customer fees and loan rates. The high compensation of CFPB employees is funded by taxpayers through the Federal Reserve. The runaway labor costs of these regulator agencies are not subject to congressional control, and they add up. Employee compensation accounts for about 80% of the operating costs of bank regulatory agencies. If the average regulatory employee’s compensation were equalized between bankers and regulators, the direct cost of bank regulation would fall by more than 50%.

At the risk of adding more bad news, the numbers for the financial sector are just the tip of the iceberg.

This video explains how the people who pay taxes get far less compensation than America’s bureaucrat class.

P.S. Lest I leave people a bit depressed, I want to share some good news.

I wrote back in 2011 about a motorist getting nailed for flashing his headlights to warn other drivers about a speed trap.

Here is an excerpt from a report in the Atlanta Journal Constitution about a Judge throwing out a similar charge.

Chris Hill noticed a sheriff’s deputy behind him and flashed his lights to warn a UPS driver coming the other way. The deputy pulled over Hill on U.S. Highway 140 in White City and handed him a $260 ticket for improperly using his headlights, saying another deputy had seen the flashing lights from behind the UPS truck and alerted him to stop the log truck because of the signaling. Outraged, Hill decided to fight the ticket, and on Wednesday, a Jackson County Justice Court judge dismissed the citation, finding that motorists flashing their headlights amounts to speech protected by the Oregon Constitution.

I’m in favor of being tough on crime, but only when laws are just.

So kudos to the Judge in this case. And hopefully jurors around the nation will use their nullification power to block similar cases of government over-reach.

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As a supporter of genuine capitalism, which means the right of contract and the absence of coercion, I don’t think there should be any policies that help or hinder unions.

The government should simply be a neutral referee that enforces contracts and upholds the rule of law.

Similarly, I also don’t have any philosophical objection to employers and employees agreeing to “defined benefit” pension plans, which basically promise workers a pre-determined amount of money after they retire based on factors such as average pay and years in the workforce.

After all, my money and property aren’t involved, so it’s not my business.

That being said, these so-called “DB plans” have a bad habit of going bankrupt. And that means the rest of us may get stuck with the bill if there’s a taxpayer bailout.

I discuss these issues in an interview with Fox Business News.

My main point is that there’s a deep hole in many of these plans, so someone is going to feel some pain.

I don’t want taxpayers to be hit, and I also don’t think well-managed pensions should be gouged with ever-rising premiums simply because other plans are faltering.

But I bet both will suffer, as will workers and retirees in the under-funded plans.

As part of the interview, I also warned that other “DB plans” are ticking time bombs. More specifically, most pensions for state and local bureaucrats involve (overly generous) pre-determined commitments and very rarely have governments set aside the amount of money needed to fund those promises.

And the biggest DB time bomb is Social Security, which has an unfunded cash-flow liability of more than $30 trillion. That’s a lot of money even by Washington standards.

But I closed with a bit of good news.

As workers and employers have learned that DB plans tend to be unstable and unsustainable, there has been a marked shift toward “defined contribution” plans such as IRAs and 401(k)s.

These plans are the private property of workers, so there’s no risk that the money will be stolen or squandered.

But even this good news comes with a caveat. We closed the interview by fretting about the possibility that governments will steal (or at least over-tax) these private pension assets at some point in the future.

That’s already happened in Argentina and Poland, so I’m not just being a paranoid libertarian.

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The headline of this post might not be completely honest. Indeed, if you asked me to grade the accuracy of my title, I’ll admit right away that it falls into the “if you like your plan, you can keep your plan” category of mendacity.

Krugman WeatherBut I’m only prevaricating to set the stage for some satire about Keynesian economics.

But this satire is based on a very bizarre reality. Advocates of Keynesian economics such as Paul Krugman have claimed that war is stimulus for the economy and that it would be good if we were threatened by an alien invasion. As such, it doesn’t take too much imagination to think that conversations like this may have taken place inside the Obama White House.

Particularly since Keynes himself thought it would be good for growth if the government buried money in the ground.

So enjoy this satire from The Onion.

By the way, Krugman also said the 9-11 terrorist attacks would “do some economic good.”

So the folks at The Onion need to step it up if they want to keep pace.

Now let’s share a serious video.

I’ve written before about how the Food and Drug Administration’s risk-averse policies lead to needless deaths.

Econstories builds upon that hypothesis, using the Dallas Buyers Club to make excellent points about why markets are better than command-and-control regulation.

Very similar to what Steve Chapman wrote about bureaucracy, competency, and incentives.

By the way, the bureaucrats at the FDA also have engaged in pointless harassment of genetic testing companies, even though nobody claims there is even the tiniest shred of risk to health and safety.

And nobody will be surprised about the bureaucracy’s anti-smoking jihad.

But nothing exemplifies brainless bureaucracy more than the raid by the FDA’s milk police. Though the FDA’s strange condom regulations might be even more bizarre.

It’s hard to decide when bureaucracies do so many foolish things.

P.S. The prize for the craziest bit of red tape still belongs to Japan, where the government actually regulates providers of coffee enemas, though the Department of Agriculture’s rules for magic rabbits is a close competitor.

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There’s an old joke that a quandary exists when your mother-in-law drives off a cliff in your new Porsche. Are you more happy about losing her or more unhappy about losing your sports car?

I’m not clever enough to come up with humorous quandaries, but I have shared policy quandaries.

I’ve asked, for instance, whether libertarians might have second thoughts about an end to drug prohibition if the result was bigger government.

And I speculated whether leftists or social conservatives would be more upset about a gay man legally adopting his lover in order to minimize Pennsylvania’s death tax.

And if you like this kind of thing, I have more than one dozen additional examples of these types of quandaries.

I have something else to add to the list, and it’s near and dear to my heart because I like to think that I’m among the biggest critics of both Obamacare and bureaucracy.

But what happens if there’s an issue pitting Obamacare and bureaucrats against each other? Would I be able to pick sides?

This isn’t theoretical speculation. Check out these excerpts from a recent report in the New York Times.

Cities, counties, public schools and community colleges around the country have limited or reduced the work hours of part-time employees to avoid having to provide them with health insurance under the Affordable Care Act, state and local officials say. …Even after the administration said this month that it would ease coverage requirements for larger employers, public employers generally said they were keeping the restrictions on work hours because their obligation to provide health insurance, starting in 2015, would be based on hours worked by employees this year. Among those whose hours have been restricted in recent months are police dispatchers, prison guards, substitute teachers, bus drivers, athletic coaches, school custodians, cafeteria workers and part-time professors.

To be honest, I don’t know how to react to this.

Am I glad that we have more evidence that Obamacare is hurting people and reducing labor supply?

That’s obviously the case, and it’s an embarrassment to the Obama Administration.

For months, Obama administration officials have played down reports that employers were limiting workers’ hours. But in a report this month, the Congressional Budget Office said the Affordable Care Act could lead to a reduction in the number of hours worked, relative to what would otherwise occur. Jason Furman, the chairman of the president’s Council of Economic Advisers, reaffirmed the White House view that the law was “good for wages and incomes and for the economy over all.” …The Obama administration says “there is absolutely no evidence” of any job loss related to the Affordable Care Act.

One suspects, by the way, that the Obama White House must have a very strange definition of “job loss.”

They’ll only confess culpability, one imagines, if Obama personally delivers the pink slip or HHS Secretary Sebilius personally orders the loss of hours.

But let’s get back to our main point. I was wondering whether I should be happy to have this additional evidence against Obamacare.

But perhaps I should be glad instead that local governments are squeezing the hours and benefits of the bureaucracy, particularly since the alternative would be higher taxes.

Check out these passages from the NYT’s story. Isn’t it wonderful to read about sulking bureaucrats?

William J. Lipkin, an adjunct professor of American history and political science at Union County College in Cranford, N.J., said: “The Affordable Care Act, rather than making health care affordable for adjunct faculty members, is making it more unaffordable. Colleges are not giving us access to health care, and our hours are being cut, which means our income is being cut. We are losing on both ends.” The American Federation of Teachers lists on its website three dozen public colleges and universities in 15 states that it says have restricted the work assignments of adjunct or part-time faculty members to avoid the cost of providing health insurance.

Some people love the smell of napalm in the morning. Not me. I prefer the whining of angry and resentful bureaucrats. Maybe (as I’ve suggested before) Obamacare isn’t all bad after all.

But 98 percent bad is still bad. The law is a trainwreck and needs to be repealed.

P.S. On another topic, is anyone surprised that the IRS doesn’t like obeying the laws it enforces against the rest of us.

Treasury’s inspector general for tax administration found that the expenses for nine IRS executives — out of 31 whose travel was examined — were wrongly deemed to be nontaxable, on average reimbursements of $51,420. Those executives traveled an average of 140.5 days combined in fiscal 2011 and 2012, the two years examined by the inspector general. The IRS had at least 350 executives in each of those years, meaning the inspector general report covers just a fraction of the agency’s top officials.

Maybe we should save the IRS bureaucrats from potential legal trouble by scrapping the internal revenue code and replacing it with a simple and fair flat tax.

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