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Archive for the ‘Boondoggle’ Category

I wrote yesterday that the Trump tax plan is yielding significant benefits, but one of my caveats at the end of the column warned that Trump’s weak record on spending undermines the long-run sustainability of lower tax rates.

The latest example of Trump’s profligacy is the $1.4 trillion spending bill for the 2020 fiscal year that was just approved (this is the “discretionary” money for the parts of the budget that are annually appropriated, so keep in mind that there’s also more than $3 trillion of “mandatory” spending for entitlement programs in 2020).

This pork-filled spending bill became inevitable when Trump surrendered to the Democrats this summer and agreed to bust the spending caps (something politicians also did in 2013, 2015, and 2018).

It’s hard to capture the utterly reckless nature of the new spending bill.

Here’s how Senator Rick Scott described the legislation.

…a giant spending package — 2,313 pages long — that was…negotiated in secret, spends $1.4 trillion, and is chock full of member projects and special-interest giveaways. …more than $4,200 for every man, woman, and child in America. …This package includes $25 million for the “operation, maintenance, and security” of the Kennedy Center in Washington, D.C. It includes a $7.25 million increase in funding for the National Endowment for the Arts, the largest increase in a decade. …It includes more than $1 billion in new foreign-aid funding without any discussion about what we’re getting for this funding. …This bill spends $1.4 trillion, with no cuts or reforms. …How many more trillions of dollars do we need to spend before we wake up to the danger…? We need to reform the way Washington works, and we need to do it now.

The Wall Street Journal was similarly dismayed, opining about the bipartisan spending orgy and pointing out the real problem is that all this spending violates the Golden Rule of fiscal policy.

Congress has left town for the year but alas not before another bipartisan spending party that has typified the Trump Presidency. …The budget problem isn’t a shortage of revenue. CBO says tax receipts grew 4% last fiscal year, through September, and 3% in the first two months this year. Economic growth is feeding the Treasury. But spending is growing much faster: 8% last fiscal year, more than four times the inflation rate, and 6% in October and November this year. In addition to the latest discretionary bills, spending on Social Security (6%), Medicare (6.1%) and Medicaid (9.2%) continue to soar this year. Neither party shows any inclination to do anything about those programs, except expand them. Mr. Trump may yet join Barack Obama in the spending record books.

Regarding the final sentence in the above excerpt, I will predict now that Trump will exceed Obama’s profligacy.

And I’ll have the numbers to prove that early next year when I update my data on presidential spending.

In the meantime, I’ll close with this very depressing chart from the Committee for a Responsible Federal Budget.

The bottom line is that Republican big spenders are enablers of Democratic big taxers.

  • In a couple of years, when there’s a big fight to get rid of the Trump tax cuts, every Republican who supported this awful deal (including Trump) will be responsible.
  • When there’s a Democratic president and a big push for class-warfare taxes, every Republican who supported this awful deal (including Trump) will be responsible.
  • When there’s a big fight after that to impose a European-style value-added tax, every Republican who supported this awful deal (including Trump) will be responsible.

Gee, isn’t bipartisanship wonderful?

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Way back in early 2016, I asked whether Donald Trump believed in smaller government.

A few months later, I concluded that the answer was no. Trump – like Bush and Nixon – was a big-government Republican.

I wish that I was wrong.

But if you look at the budget deal he approved last year, there’s no alternative explanation. Especially since there was an approach that would have guaranteed a victory for taxpayers.

Now it appears that he is on the verge of meekly surrendering to another big expansion of the federal budget.

The Washington Post has a story on the new deal to increase spending.

…the final details of a sweeping budget and debt deal are unlikely to include many — if any — actual spending cuts… The agreement appeared likely to mark a retreat for White House officials who had demanded major spending cuts in exchange for a new budget deal. …instead of the $150 billion in new spending cuts recently demanded by White House acting budget director Russell Vought, the agreement would include a significantly lower amount of reductions. And those reductions aren’t expected to represent actual spending cuts, in part because most would take place in future years and likely be reversed by Congress at a later date. …In practical terms, the budget agreement would increase spending by tens of billions of dollars in the next two years, a stark reversal from the White House’s budget request several months ago… Agreeing on new spending levels also avoids onerous budget caps that would otherwise snap into place automatically under an Obama-era deal, and indiscriminately slash $126 billion from domestic and Pentagon budgets.

The establishment-oriented Committee for a Responsible Federal Budget (CRFB) is aghast at the grotesque profligacy of the purported agreement.

…this agreement is a total abdication of fiscal responsibility by Congress and the President. It may end up being the worst budget agreement in our nation’s history, proposed at a time when our fiscal conditions are already precarious. If this deal passes, President Trump will have increased discretionary spending by as much as 22 percent over his first term… There was a time when Republicans insisted on a dollar of spending cuts for every dollar increase in the debt limit. It’s hard to believe they are now considering the opposite – attaching $2 trillion of spending increases to a similar-sized debt limit hike.

I sometimes differ with the folks at the CRFB because they’re too fixated on debt rather than the size of government.

But in this case, we both find this rumored deal to be utterly irresponsible.

From a liberty-minded perspective, the Wall Street Journal opines about the spendthrift agreement.

House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin are negotiating another spending blowout as part of a two-year budget deal, and let’s hope the talks break down. The price could be another $2 trillion in deficit spending… The Budget Control Act of 2011 puts caps on spending that both parties have to agree to lift. In 2018 Congress passed a two-year budget deal that blew out domestic spending by more than $130 billion in exchange for a buildup in defense. The bipartisan spending party is hoping to repeat the exercise for fiscal 2020 and 2021… After the last two-year deal Mr. Trump vowed never to sign another one, but here he is again. …The GOP may…underestimate the political cost of campaigning on another spending deal that increases the size of government. It will be harder to run against the spending plans of Elizabeth Warren or Kamala Harris with Mr. Trump’s first-term spending record.

I’ll close with a chart I prepared based on the numbers for domestic discretionary spending from the Mid-Session Review, as well as Table 8.1 from the Historical Tables, both from the Office of Management and Budget.

The numbers show that we had more fiscal restraint under Obama (blue line) than Trump (orange line). And Trump’s numbers will now be even worse with the new deal.

I added the Excel-generated trendline to show what would have happened if Obama-era policies were maintained.

But since that produced an unrealistic assessment, I also showed (green line) what spending would have looked like if politicians had obeyed commitments from the 2011 Budget Control Act (BCA).

Some of these numbers are back-of-the-envelope calculations, but the bottom line is clear. Trump is worse than Obama on spending.

And that means big tax increases inevitably will be the result.

P.S. When I recently issued a report card for Trump’s economic policy, I gave him a “B-” because I decided his good tax policy outweighed his bad spending policy. If this deal gets finalized, he drops to a “C-” because of the big expansion in the burden of spending.

P.P.S. Trump also is weak on entitlement spending, which is the biggest part of the federal spending burden.

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San Francisco used to be famous for cable cars.

Now it’s getting well known for its “poop patrol” and maps that warn people about the ubiquitous presence of human excrement.

Why are people defecating on city sidewalks? Because there’s a major problem with government-created homelessness thanks to rent control and zoning restrictions.

And homelessness gives us our topic for today because we have an astounding example of government waste.

More specifically, a story from the San Francisco Chronicle nicely summarizes the efficiency and competence of the public sector.

An experiment to put a homeless shelter in a San Francisco public school gym has so far been a costly failure, …costing taxpayers about $700 for each person who spends the night. …only five families have used the facility at 23rd and Valencia streets in the Mission, with an average occupancy of less than two people per night… The facility is completely empty several nights each month, Kositsky said, although shelter workers are on-site seven nights a week and through holidays, whether anyone shows up or not.

I’ve been to San Francisco many times. Hotels are not cheap.

But I’ve never had to pay anywhere close to $700 per night.

Though maybe this San Francisco program is a bargain since it costs the state $1.3 million per year to house a homeless person.

So why did the city create this boondoggle? For the same reason that many programs are created. Politicians and bureaucrats exaggerated about a problem.

Supervisor Hillary Ronen and the school’s administrators…advocated for the shelter, saying there were dozens of families facing homelessness at Buena Vista Horace Mann who needed someplace to sleep. The principal at the time, Richard Zapien, said he had identified 60 families in unstable housing.

But here’s a passage that captures the real story.

This program was created to funnel money to a non-profit group and I wouldn’t be surprised to learn that officers of this group are supporters (campaign cash, get-out-the-vote, etc) of the politicians who created the program.

The city has been paying the nonprofit Dolores Street Community Services $40,000 per month to manage the shelter, and if it were to be successful, would spend up to $900,000 per year to serve up to 20 families at a time with all-night staffing, food and support services to help them find permanent housing.

In other words, we have another example of how government is a racket.

No matter how flawed and foolish a program may be, never forget that it’s putting unearned money in the pockets of some group of people. And that group of people know how to play the game, since they then recycle some of the loot back to the politicians.

Politicians don’t care if the money is wasted. They don’t care if there’s rampant fraud.

They’re simply buying votes. With our money.

P.S. There is a sure-fire way of reducing this kind of corrupt behavior, but don’t hold your breath expecting it to happen.

P.P.S. Though you may want to hold your breath if you visit the city.

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Every so often, I’ll see a story (or sometimes even just a photo, a court decision, or a phrase) that sums up the essence of government – a unseemly combination of venality and incompetence.

Today, we’re going to review three examples that make my point.

We’ll lead with a story that is a perfect case study of Washington.

It starts with Trump imposing tax increases on imports. That’s bad.

Then Trump says we have to subsidize sectors of the economy hurt by retaliatory tariffs. That’s one bad policy leading to another bad policy (hmmm…., there’s a name for that).

And that second bad policy leads to something else bad, at least according to the New York Daily News.

The Department of Agriculture cut a contract in January to purchase $22.3 million worth of pork from plants operated by JBS USA, a Colorado-based subsidiary of Brazil’s JBS SA, which ranks as the largest meatpacker in the world. …The bailout raised eyebrows from industry insiders at the time, as it was sourced from a $12 billion program meant for American farmers harmed by President Trump’s escalating trade war with China and other countries. …previously undisclosed purchase reports…reveal the administration has since issued at least two more bailouts to JBS, even as Trump’s own Justice Department began investigating the meatpacker, whose owners are Joesley and Wesley Batista — two wealthy brothers who have confessed to bribing hundreds of top officials in Brazil. Both brothers have spent time in jail over the sweeping corruption scandal. …Nonetheless, Trump’s Agriculture Department issued $14.5 million in bailout cash for pork products from JBS in February and another $25.6 million earlier this month, totaling more than $62.4 million, according to the purchase reports. …Including the JBS bailouts, the administration doled out $11 billion in relief payments to farmers hurt in the trade war last year.

Wow. I don’t know if this is better or worse than the Administration spending $13.6 million to hire two agents for the border patrol.

And I don’t know whether it’s better or worse than this next example of government foolishness.

A report published by Quartz estimates the amount of many Washington has wasted on abstinence programs.

Between 1982 and 2017, Congress spent over $2 billion on programs which teach teens that the best way to address their desire to have sex is to wait until they get married, according to a new study… Called abstinence only until marriage (AOUM), these programs accurately explain that the best way to avoid pregnancy and sexually transmitted diseases is to not have sex. …From 1995 to 2011–2013, the share of US adolescents who received instruction on abstinence but no instruction about birth control methods, increased from 8% to 28% of females and from 9% to 35% of males, according to the report. …Scientific evidence shows the approach doesn’t actually delay teens having sex, or engaging in risky sexual behaviors.

Just like the money spent to encourage marriage is a waste.

By the way, I’m also sure that the money spent on regular sex education and birth control education hasn’t worked, either.

Indeed, I wonder if such spending actually makes things worse (such as the Indiana driver education program that turned kids into worse drivers).

For our third example, here’s some of what the New York Times wrote about refrigerators on Air Force One.

…two of the refrigerators on the president’s plane need to be upgraded, and these specially designed “chillers” aren’t cheap. The Boeing Company was awarded a nearly $24 million contract in December to engineer the refrigerators for Air Force One, the Defense Department said. …Perhaps in anticipation of taxpayer sticker shock, the Air Force also said “the engineering required to design, manufacture, conduct environmental testing and obtain Federal Aviation Administration certification” were all included in the cost. …Air Force One must be able to feed passengers and crew for weeks without resupplying, according to the news website Defense One. …Two galleys can provide up to 100 meals at one sitting, according to the Air Force.

This story presumably involves two common features of government contracting.

First, pay too much for what is ordered (and this doesn’t even count the seemingly inevitable cost overruns).

Second, ask for something excessive in the first place. What’s the point, for instance, of storing several weeks of food when the longest-possible trips are maybe 20 hours? Yes, I watched Independence Day and I realize that Air Force One may become the mobile White House in an emergency, but wouldn’t MREs be acceptable for our pampered politicians and senior staff if there was a real crisis?

I’ll conclude by observing that these three stories reminded me of this satirical version of The Candyman.

P.S. There’s also an Obamaman version of Candyman.

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I spend much of my time analyzing the foolish and counterproductive policies imposed by Washington. Often accompanied by some mockery of politicians and their silly laws.

And I also employ the same approach when reviewing the bone-headed policies often pursued by state governments and local governments.

And since this is “International Liberty,” I obviously like to pay attention to what happens in other nations as well. I guess you could call it the global version of misery-loves-company.

So today we’re going to add to our collection of “Great Moments in Foreign Government.”

We’ll start in Egypt, where we got a version of alchemy. Except instead of turning a base metal into gold, a donkey was turned into a zebra.

A zoo in Egypt has denied painting black stripes on a donkey to make it look like a zebra after a photo of the animal appeared online. Student Mahmoud Sarhan put the images on Facebook after visiting Cairo’s International Garden municipal park. Aside from its small size and pointy ears, there were also black smudges on its face. …the enclosure contained two animals and that both had been painted. When contacted by local radio station Nogoum FM, zoo director Mohamed Sultan insisted the animal was not a fake.

The most amusing part of the report, though, was learning that zoos routinely try to mislead customers.

This is not the first time that a zoo has been accused of trying to fool its audience. Unable to find a way around the Israeli blockade, a zoo in Gaza painted two donkeys to look like zebras in 2009. Another Gaza zoo put stuffed animals on display in 2012 because of the shortages of animals. In 2013, a Chinese zoo in Henan province tried to pass off a Tibetan mastiff dog as an African lion, and in 2017 a zoo in Guangxi province disappointed visitors by exhibiting blow-up plastic penguins. Weeks later, another Guangxi zoo drew condemnation for displaying plastic butterflies. …Papua New Guinea is one of the poorest countries in Apec, with 40% of the population living on less than $1 a day according to the UN.

I have to confess, though, that I don’t know if any of these zoos were private. So maybe we have a problem that isn’t just limited to government.

Our next story is from India.

It seems that the military doesn’t understand that submarines are supposed to be watertight.

…it’s a good idea to, like, close the hatches before you dive. Call it a lesson learned for the Indian navy, which managed to put the country’s first nuclear-missile submarine, the $2.9 billion INS Arihant, out of commission in the most boneheaded way possible. The Hindu reported yesterday that the Arihant has been out of commission since suffering “major damage” some 10 months ago, due to what a navy source characterized as a “human error” — to wit: allowing water to flood to sub’s propulsion compartment after failing to secure one of the vessel’s external hatches. …It’s hard to articulate how major a foul-up this is… Indian authorities ordered the pipe replacement because they “likely felt that pipes exposed to corrosive seawater couldn’t be trusted again, particularly pipes that carry pressurized water coolant to and from the ship’s 83 megawatt nuclear reactor.”

Sounds like India’s navy would have been better off if the person in charge of the hatch had been one of the country’s famous no-show bureaucrats.

Now let’s turn our attention to Papau New Guinea, where the roads are so poor that it makes no sense to have fancy, high-speed cars.

Yet that didn’t stop the government from using a summit as an excuse to buy 40 Maseratis

Papua New Guinea’s government is under scrutiny for importing 40 luxury Maserati cars from Italy for the…Asia-Pacific Economic Cooperation (Apec) summit. The Quattroporte sedans, which cost more than $100,000 each (£75,000), will be used by foreign leaders. Media and activists have questioned if the poor Pacific country has wasted millions. …Apec Minister Justin Tkatchenko said the cars, which can reach speeds of 240 km/h (149 mph), would “provide the level of carriage for leaders that is the standard for vehicles used at Apec summits”. …Some of the Pacific country’s main roads are poorly maintained, with vehicle speeds limited to 80 km/h (50 mph). Other roads wind through mountainous terrain and often require a four-wheel-drive vehicle to navigate.

Incidentally, the government claimed that the Maseratis would be resold to private buyers, meaning no net cost to taxpayers. Highly unlikely, to be sure.

Moreover, if there was a follow-up story, I wouldn’t be surprised to learn that they magically wound up in the hands of politicians and their family members.

The bottom line is that governments manage to combine malicious venality with staggering incompetence. Quite a feat.

P.S. For what it’s worth, America’s political elite prefers to rely on taxpayer-financed limousines.

P.S.S. I’ve noticed on my trips to Cayman that there are lots of fancy, high-performance cars. In some sense this isn’t surprising. After all, zero-tax Cayman is a wealthy place. Yet I’ve always wondered why people buy such cars on a small island where high-speed travel is both difficult and unnecessary. But at least those are people spending their own money (though the government there certainly is capable of over-spending in other ways).

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When I wrote about “crazy Bernie Sanders” in 2016, I wasn’t just engaging in literary hyperbole. The Vermont Senator is basically an unreconstructed leftist with a disturbing affinity for crackpot ideas and totalitarian regimes.

His campaign agenda that year was an orgy of new taxes and higher spending.

Though it’s worth noting that he’s at least crafty enough to steer clear of pure socialism. He wants massive increases in taxes, spending, and regulation, but even he doesn’t openly advocate government ownership of factories.

Then again, there probably wouldn’t be any factories to nationalize if Sanders was ever successful in saddling the nation with a Greek-sized public sector.

He’s already advocated a “Medicare-for-All” scheme with a 10-year price tag of $15 trillion, for instance. And now he has a new multi-trillion dollar proposal for guaranteed jobs.

In a column for the Washington Post, Robert Samuelson dissects Bernie’s latest vote-buying scheme. Here’s a description of what Senator Sanders apparently wants.

Sen. Bernie Sanders (I-Vt.) wants the federal government to guarantee a job for every American willing and able to work. The proposal sounds compassionate and enlightened, but in practice, it would almost certainly be a disaster. …Just precisely how Sanders’s scheme would work is unclear, because he hasn’t yet submitted detailed legislation. However, …a job-guarantee plan devised by economists at Bard College’s Levy Economics Institute…suggests how a job guarantee might function. …anyone needing a job could get one at a uniform wage of $15 an hour, plus health insurance (probably Medicare) and other benefits (importantly: child care). When fully deployed, the program would create 15 million public-service jobs, estimate the economists. …the federal government would pay the costs, the program would be administered by states, localities and nonprofit organizations.

As you might expect, the fiscal costs would be staggering (and, like most government programs, would wind up being even more expensive than advertised).

This would be huge: about five times the number of existing federal jobs (2.8 million) and triple the number of state government jobs (5 million). …The proposal would add to already swollen federal budget deficits. The Bard economists put the annual cost at about $400 billion. …overall spending is likely underestimated.

But the budgetary costs would just be the beginning.

Bernie’s scheme would basically destroy a big chunk of the job market since people in low-wage and entry-level jobs would seek to take advantage of the new government giveaway.

…uncovered workers might stage a political rebellion or switch from today’s low-paying private-sector jobs to the better-paid public-service jobs… The same logic applies to child-care subsidies.

And there are many other unanswered questions about how the plan would work.

Does the federal government have the managerial competence to oversee the creation of so many jobs? …Can the new workers be disciplined? …Finally, would state and local governments substitute federally funded jobs for existing jobs that are supported by local taxes?

If the plan ever got adopted, the only silver lining to the dark cloud is that it would provide additional evidence that government programs don’t work.

The irony is that, by assigning government tasks likely to fail, the advocates of activist government bring government into disrepute.

But that silver lining won’t matter much since a bigger chunk of the population will be hooked on the heroin of government dependency.

In other words, just as it’s now difficult to repeal Obamacare even though we know it doesn’t work, it also would be difficult to repeal make-work government jobs.

So we may have plenty of opportunity to mock Bernie Sanders, but he may wind up with the last laugh.

P.S. Regarding getting people into productive work, I figure the least destructive approach would be “job training” programs.

Beyond that, I’m not sure whether make-work government jobs are more harmful or basic income is more harmful.

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A few years ago, John Stossel did an undercover investigation of a government job-training program and he found that the operation was basically a scam.

Not that we should be surprised. Back in 2014, I explained to a C-Span audience that a healthy private sector was the only sure-fire way of producing a good job market. Which is why politicians (assuming they actually want job creation) should simply “get out of the way.”

Let’s now take a fresh look at the issue. The Wall Street Journal editorialized on this topic a few days ago.

…a new report from the Labor Department’s inspector general shows that the $1.7 billion federal Job Corps training program is a flop. …Nearly 50,000 people enrolled in 2017…the Job Corps provides meals, medical care, books, clothing and supplies, as well as an allowance for child care and living expenses. Such comprehensive support doesn’t come cheap—the taxpayer cost per student last year was $33,990—and the IG suggests that the investment often doesn’t pay off. …in 27 of 50 cases where full employment data existed, graduates were working the same sort of low-wage, low-skill jobs they held before training.

But there are beneficiaries of the program. The bureaucrats and contractors involved in the program make out like bandits.

The new report suggests that Job Corps’ biggest beneficiaries may be government contractors, not rookie job seekers. Job Corps spent more than $100 million between 2010 and 2011 on transition-service specialists to place students in a job after training. But among 324 sampled Job Corps alumni, the IG found evidence that contractors had helped a mere 18 find work. The contractors often claimed credit for success even though they provided no referrals or résumé and interview help.

Once again, this should not be surprising. It’s what we find over and over and over again.

Here are some excerpts from a report prepared a few years ago by then-Senator Tom Coburn.

…the government has taken on a role for which it was never intended, pouring billions of taxpayer dollars into a broken web of job training and employment programs that are rife with waste, fraud and abuse and lacking demonstrable effectiveness. …In FY 2009, nine federal agencies spent approximately $18 billion to administer 47 separate employment and job training programs, according to the U.S. Government Accountability Office (GAO). GAO identified another 51 federal programs that could be categorized as federal job training programs… The GAO found all but three of the 47 programs overlap with at least one other program in that they provide similar services to similar populations – yet maintain separate administrative structures.

All that bureaucracy and duplication might be an acceptable price to pay to get good results.

Except the programs are a miserable flop.

GAO finds ―little is known about the effectiveness of most programs. …impact studies that were conducted ―generally found the effects of participation were not consistent across programs, with only some demonstrating positive impacts that tended to be small, inconclusive or restricted to short-term impacts.

The report then lists 25 separate examples of wasteful and fraudulent spending.

It’s difficult to pick the most egregious example, but #14 caught my attention.

…a Department of Labor official was found to be taking bribes from a Job Corps contractor, even approving contracts that billed for ghost employees. …the government provided Job Corps with $1.68 billion in fiscal year 2009 and $1.7 billion in FY 2010. Job Corps also received $250 million in stimulus funding in addition to regular annual appropriations. …As part of the Inspector General‘s investigation, a search warrant was executed at the contractor‘s home. The contractor said that Brevard assisted in getting him contracts in exchange for payments. The contractor paid Brevard because if he did not do so, she would not process his invoices. When asked by law enforcement, Brevard admitted to receiving payments from the contractor paid her, and that she approved contracts – of which she knew were false.

Let’s look at a recent real-world example of failure.

The Daily Signal has done some solid reporting on this topic, including this look at the high cost and low benefits of job-training programs.

A government-funded job training program that promised to turn hundreds of residents of Kentucky’s coal country into computer coders so far has spent $2 million to place 17 people in tech jobs and may have left others worse off… The job training program, budgeted for a total of $4.5 million, was supposed to last through 2019 and train up to 200 people from an economically depressed region of Kentucky for middle- to high-skill careers in information technology. …But less than a year later, workers have torn down signs at Big Sandy Community and Technical College, where the program was based, and are closing shop on what appears to be a government-funded program run amok. A total of 32 of the 49 Kentuckians who originally enrolled in the TechHire program in Eastern Kentucky, known as TEKY, have not obtained jobs in the tech industry, according to government figures.

Predictably, the contractors were beneficiaries.

EKCEP spent $1.98 million on the partnership with Interapt. That total includes payments of $861,612 to Interapt for staff salaries and management fees, $706,146 for program service fees, and $115,287 for travel. In one case, Interapt billed EKCEP $5,200 a month for rental of a five-bedroom, five-bathroom house in Paintsville, complete with swimming pool, for Interapt staffers working on the training program. But Gopal, Interapt’s CEO, submitted as an expense and was reimbursed $1,022.40 in December alone for staying at a Ramada Inn in Paintsville, which is about 200 miles east of Louisville. …“Companies like Interapt can rely on the federal government as a crutch because the government has traditionally funded these job training programs, and it creates this vicious circle where industry supports it, politicians support it, but the results don’t bear out the intentions of the programs,” said Nick Loris, an economist who researches and writes about energy policy at The Heritage Foundation.

Let’s close with a meaty excerpt from an overview of job-training programs by Chris Edwards and Daniel Murphy.

The most thorough assessment of federal job training programs was a $25 million National JTPA study in 1994, which was commissioned by the Department of Labor. It tracked 20,000 people over a four-year period who used various training services, and compared them to control groups who did not. The study found that for most participants, federal programs had no significant benefits. …(Labor experts James Heckman and Jeffrey Smith note: “For youth, the record of government training programs for the disadvantaged is almost uniformly negative.”) All in all, the National JTPA study found that the modest benefits of the program were outweighed by the program’s costs. A 2002 book, The Job Training Charade, examines the failures of federal job training programs over the decades. The author, Gordon Lafer of the University of Oregon, is very liberal in his politics… But based on his detailed review, he finds that federal job training programs have provided very small or insignificant benefits. He argues that these programs exist for political reasons alone. Politicians have championed these programs in order to be seen as “doing something” to help workers, and whether they actually work or not is less important. Lafer argues that “as successive generations of job training programs fail to produce the hoped for results, policymakers have cycled through a stock repertoire of procedural fixes that promise to solve the problem.” CETA was supposed to fix problems of the 1960’s training programs. JTPA was supposed to fix CETA, and the WIA was supposed to fix JTPA. Lafer notes that “repeated reports of [JTPA’s] failure seem to have little impact on its political popularity… JTPA was succeeded by the Workforce Investment Act which . . . largely repeats the same strategies found to have failed under JTPA.” Job training legislation is little more than “political symbolism,” he says.

Unfortunately, empty “political symbolism” is the specialty of Washington.

Politicians don’t see the “unseen” and they don’t understand “creative destruction.”

So their efforts at job creation hinder rather than help.

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