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Archive for the ‘Bureaucrats’ Category

Unlike some libertarians, I have patriotic feelings for my country. I want the United States to be the best in everything.

So it’s with some chagrin that I realized that the last two honorees selected for the Bureaucrat Hall of Fame came from overseas.

This included the man from India who earned his spot by not showing up for work – ever – for nearly a quarter of a century.

We also selected the woman from France who had a government-provided car and driver but still managed to bill taxpayers for almost $150 of taxi fares per day.

Given my jingoistic feelings, I’m worried that American bureaucrats are losing ground to their foreign counterparts. It would be a national embarrassment, after all, if our pencil pushers got a reputation for being slackers about slacking off.

So I’m very proud to announce that the newest member of the Bureaucrat Hall of Fame is a red-white-and-blue American.

The Washington Post reports on his truly amazing – and nauseating – scheme to bilk taxpayer to the hilt. Here’s the basic description of what happened.

A senior National Weather Service official helped write the job description and set the salary for his own post-retirement consulting post– then came back to the office doing the same job with a $43,200 raise, the agency’s watchdog found.

Hey, maybe I can do the same thing at Cato. I’ll propose a new position for a Senior Fellow in Recreational Studies. But since I’m modest, I’ll only suggest that this new slot only pay $35,000 more than what I’m now getting. And then I’ll…

Oh, never mind. I momentarily forgot that the Cato Institute isn’t the federal government. Our managers actually care about spending money wisely.

But that’s obviously not the case in Washington, as we can see from these additional excerpts.

The deputy chief financial officer also demanded that he be paid a $50,000 housing allowance near Weather Service headquarters in downtown Silver Spring in violation of government rules for contractors, one of numerous improprieties in a revolving-door deal sealed with full knowledge of senior agency leaders.

Yes, you read correctly. This scheming parasite latched onto the public teat with full knowledge and approval of his superiors.

And in less than two years, he scammed nearly half-a-million dollars from America’s taxpayers.

With his consulting job and housing allowance in place, P. Donald Jiron retired from the Weather Service in early May 2010, then returned to work as a consultant the next day, while collecting his government pension, investigators said. By the time he was fired 21 months later, the government had paid him another $471,875.34.

A taxpayer-provided pension plus a new taxpayer-provided salary. That’s double dipping without even having to get a new desk! Kudos to P. Donald.

You may be thinking – or hoping – that this is an isolated case of waste, fraud, and abuse.

But the Inspector General report reveals this is just the tip of a very sordid iceberg.

His procurement of his own post-retirement job appears to be commonplace throughout the National Oceanic and Atmospheric Administration, the Weather Service’s parent agency.

This story also has a nepotism angle. I guess we can modify the old saying: The family that mooches together, stays together.

Jiron also broke other rules, investigators found. He used his position as a contractor and former senior official to pressure Weather Service staff to give his daughter a job, skirting federal hiring rules that require competition.

Amazingly, he apparently wasn’t successful in his nepotism scheme. Which almost led me to deny him membership.

But the housing allowance he scammed was enough to push him over the top.

So here’s the bottom line. We have government positions that shouldn’t exist. We then pay the people in these positions far more than they could earn in the private sector.

And we have government managers who turn a blind eye (or worse) when these bureaucrats figure out ways to double-dip, triple-dip, and otherwise pillage taxpayers.

Hey, nice work if you can get it.

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When one thinks about all the Obamacare lies, it’s difficult to identify the worst one.

In other words, just about everything we were told was a fib. Even the tiny slivers of good news resulting from Obamacare were based on falsehoods.

So I almost feel like I’m guilty of piling on by writing about another big Obamacare lie.

But Charles Krauthammer has such a strong critique of Obamacare’s mandate for electronic health records that I can’t resist. He starts by pointing out that doctors are unhappy about this costly new mandate.

…there was an undercurrent of deep disappointment, almost demoralization, with what medical practice had become. The complaint was not financial but vocational — an incessant interference with their work, a deep erosion of their autonomy and authority…topped by an electronic health records (EHR) mandate that produces nothing more than “billing and legal documents” — and degraded medicine.

Not just unhappy. Some of them are quitting and most of them are spending less time practicing actual health care.

Virtually every doctor and doctors’ group I speak to cites the same litany, with particular bitterness about the EHR mandate. As another classmate wrote, “The introduction of the electronic medical record into our office has created so much more need for documentation that I can only see about three-quarters of the patients I could before, and has prompted me to seriously consider leaving for the first time.” …think about the extraordinary loss to society — and maybe to you, one day — of driving away 40 years of irreplaceable clinical experience.

Then Krauthammer exposes the deceptions we were fed when Obamacare was being debated.

The newly elected Barack Obama told the nation in 2009 that “it just won’t save billions of dollars” — $77 billion a year, promised the administration — “and thousands of jobs, it will save lives.” He then threw a cool $27 billion at going paperless by 2015. It’s 2015 and what have we achieved? The $27 billion is gone, of course. The $77 billion in savings became a joke. Indeed, reported the Health and Human Services inspector general in 2014, “EHR technology can make it easier to commit fraud,” as in Medicare fraud, the copy-and-paste function allowing the instant filling of vast data fields, facilitating billing inflation.

A boondoggle on the back of taxpayers. Flushing $27 billion is bad enough, but the indirect costs also are large.

That’s just the beginning of the losses. Consider the myriad small practices that, facing ruinous transition costs in equipment, software, training and time, have closed shop, gone bankrupt or been swallowed by some larger entity. …One study in the American Journal of Emergency Medicine found that emergency-room doctors spend 43 percent of their time entering electronic records information, 28 percent with patients. Another study found that family-practice physicians spend on average 48 minutes a day just entering clinical data.

Here’s the bottom line.

EHR is health care’s Solyndra. Many, no doubt, feasted nicely on the $27 billion, but the rest is waste: money squandered, patients neglected, good physicians demoralized.

Not much ambiguity in that sentence. To put it bluntly, “EHR” is the kind of answer you get when you ask a very silly question.

But on a more serious note, now read what Dr. Jeffrey Singer wrote about electronic health records. Simply stated, this is like Solyndra, but much more expensive. Instead of wasting a few hundred million on cronyist handouts to Obama campaign donors, EHR is harming an entire sector of the economy.

The only thing I’ll add is that neither Krauthammer nor Singer contemplated the possible risks of amassing all the information contained in EHRs given the growing problem of hacking and identity theft.

P.S. On another topic, I’ve written several times about the excessive pay and special privileges of bureaucrats in California.

Now, thanks to Reason, we can read with envy about another elitist benefit for that gilded class.

…a little-known California state program designed to protect police and judges from the public disclosure of their home addresses had expanded into a massive database of 1.5 million public employees and their family members… Because of this Confidential Records Program, “Vehicles with protected license plates can run through dozens of intersections controlled by red light cameras and breeze along the 91 toll lanes with impunity,” according to the Orange County Register report. They evade parking citations and even get out of speeding tickets because police officers realize “the drivers are ‘one of their own’ or related to someone who is.”

You may be thinking that the law surely was changed after it was exposed by the media.

And you would be right. But if you thought the law would be changed to cut back on this elitist privilege, you would be wrong.

…the legislature did worse than nothing. It killed a measure to force these plate holders to provide their work addresses for the purpose of citations — and expanded the categories of government workers who qualify for special protections. This session, the legislature has decided to expand that list again, never mind the consequences on local tax revenues, safety and fairness. …Given the overwhelming support from legislators, expect more categories to be added to the Confidential Records Program — and more public employees and their families being free to ignore some laws the rest of us must follow.

This is such a depressing story that I’ll close today with this bit of humor about bureaucracy in the Golden State.

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There’s a Terror Wing in the Moocher Hall of Fame, so I guess it stands to reason that I should create a French Wing of the Bureaucrat Hall of Fame.

After all, few nations can compete with France in the contest to over-tax and over-spend.

And a lot of that spending goes to subsidize a bloated bureaucracy.

Moreover, I suspect many members of that bureaucracy work in jobs that shouldn’t exist and get wildly over-compensated.

Just last month, for instance, I honored one of those bureaucrats with membership in the Hall of Fame because she managed to squander an average of $145 of other people’s money on taxis each and every day (including weekends) even though she also had a taxpayer-provided car and chauffeur!

Wow. And she wasted that much money while working in a position (archivist for the country’s government-run media operation) that never should have been created.

Speaking of which, here are some amusing (only amusing because I’m not a French taxpayer) snippets from a story in the U.K.-based Times about some other ultra-spoiled French bureaucrats.

The 40 members of the Académie Française have…lavish perks… Their remuneration arrangements…include free flats in some of Paris’s most sought-after districts… The report, by the Court of Accounts, is likely to add to widespread resentment of a Parisian elite seen as clinging to its privileges.

The pay levels for these über-bureaucrats are absurd, but the perks are downright astounding.

Many [flats] were made available without justification to the intellectuals who belonged to the academies and their staff, the report said.Hélène Carrère d’Encausse, the historian who is its “permanent secretary”, received €104,768 a year and a free flat in Paris, the report said. The academy justifies her remuneration on the ground that her work is so great that she has to “renounce all literary work”. However, Mrs Carrère d’Encausse has produced nine books, largely on Russia, her specialist subject, since being given the post in 1999. …There is also criticism of Hugues Galls, the opera director who sits on the Academy of Fine Arts and runs one of its properties — the house and gardens where Claude Monet lived. The report said he received a BMW 125i, bought by the academy for €40,461. His garage fees of €1,700 a month are paid by the institution.

Hey, nice “work” if you can get it.

No wonder the OECD is based in Paris. The culture is perfect for elitist leeches.

And it shows that my First Theorem of Government applies in France as well as the United States.

The only silver lining to this dark cloud is that the French elite is slowly waking up to the reality that the government is running out of victims to finance such special-interest perks.

P.S. I rarely get to celebrate good news, so let’s enjoy this moment because the government thugs who stole $107,000 from Lyndon McLellan are being forced to return the money.

Reason has the wonderful details.

…the federal prosecutor assigned to the case was peeved. “Your client needs to resolve this or litigate it,” Assistant U.S. Attorney Steve West wrote in an email message. “But publicity about it doesn’t help. It just ratchets up feelings in the agency. My offer is to return 50% of the money. The offer is good until March 30th COB.” That deadline came and went, but Lyndon McLellan, the convenience store owner who lost $107,000 to the IRS because it considered his bank deposits suspiciously small, refused to fold. That turned out to be a smart move, because West was bluffing. Yesterday the government agreed to drop the case and return all of McLellan’s money.

This is great news, but notice what happened. The Assistant U.S. Attorney initially tried to threaten this innocent man.

But as the case got more publicity, the hack bureaucrat was forced to relent, in much the same way cockroaches scurry into crevices when the kitchen light is turned on.

By the way, if anyone knows Steve West, make sure to let him know that he’s a despicable human being. I bet he’s friends with Robert Murphy and Michael Wolfensohn.

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Economists generally like competition because it promotes economic efficiency, more prosperity, lower prices, and higher wages.

But some types of competition can be misguided.

For instance, Americans used to dominate membership in the Bureaucrat Hall of Fame.

Now, however, government employees in other nations have risen to the challenge and shown they can be just as spectacularly unproductive and wasteful as their American counterparts.

Maybe even more so.

Consider the doctor for Italy’s government-run healthcare system who only worked 15 days over a nine-year period.

Even more impressive, how about the bureaucrat in India who managed to go 24 years without showing up for work.

Now we have another foreign honoree.

Here are some blurbs from a BBC report about one French bureaucrat who went above and beyond the call of duty.

A top French civil servant has been forced to resign after spending more than €40,000 (£29,000; $44,000) on taxis in 10 months. Agnes Saal stepped down as head of France’s TV and radio archives at the demand of the culture minister. She had previously argued she needed to travel by taxi, despite having a chauffeur as well as a private car. But she admitted her son was responsible for €6,700 of the bill… She said giving him her reservation number was a “silly mistake”.

Yes, there was a “silly mistake,” but that mistake took place when France decided to create a Ministry of Culture.

Then another “silly mistake” was creating a sub-bureaucracy to be in charge of archives.

And then an additional “silly mistake” was to give the head bureaucrat of that useless division a credit card.

And perhaps the biggest “silly mistake” was to assign a chauffeur to a person holding a job that shouldn’t even exist.

All that being said, Ms. Saal deserves to be in the Bureaucrat Hall of Fame because it takes a special sense of entitlement to have a chauffeur yet still run up a $44,000 taxi bill in just 10 months.

That’s nearly $145 per day she foisted on overburdened French taxpayers, which doesn’t even count the cost of the car and chauffeur!

And I suppose we should give an “honorable mention” award to Ms. Saal’s predecessor. In his new position, he has also demonstrated an unwavering commitment to waste, fraud, and abuse.

She replaced Mathieu Gallet, who is now head of French public radio and is himself at the centre of a scandal after reportedly spending €100,000 on renovating his office and hiring a €90,000 PR consultant, just as he was preparing a cost-cutting plan.

Oh, and will anybody be surprised to learn that the over-paid bureaucrats at France’s taxpayer-subsidized radio network just finished a record-long strike?

Employees at Radio France ended their longest ever strike earlier this month, after walking out for 28 days.

Sigh. I can’t wait for the day when France will be forced to reconsider whether state-run and state-financed media networks are a proper function of government (like has already happened in Greece).

P.S. On another topic, I wrote a few days ago about the types of policies that lead to more “SuperEntrepreneurs” in a nation.

Well, the World Economic Forum has published related research about the impact of taxes on “superstar inventors.”

They start by looking at some of the research about taxation and labor mobility.

There is currently heated public debate about whether higher top tax rates will cause an exodus of valuable, high income and highly skilled economic agents. …Kleven et al. (2014) study a Danish tax reform that temporarily reduced top tax rates on high income foreigners and they find very strong effects on the inflow of migrants. In another recent paper Kleven, Landais, and Saez (2013) show that highly paid football players react to top tax rates when choosing in which country to work. …A group of highly valuable economic agents that policymakers perhaps might worry about is inventors, the creators of innovations and potential drivers of technological progress. Inventors may well be important factors for a country’s development and competitiveness – highly skilled migration has been shown to be both beneficial for a receiving country’s economy and to disproportionately contribute to innovation (Kerr 2013).

Then they focus specifically on highly productive inventors and how they migrate to places where the tax burden is less onerous.

…the average top 1% inventor has hundreds of times more citations. Among top inventors, some are highly successful migrants. In general, higher quality inventors are more mobile than lower quality inventors. …In recent research (Akcigit, Baslandze, and Stantcheva 2015) we study the international migration responses of superstar inventors to top income tax rates for the period 1977-2003 using data from the European and US Patent offices, as well as from the Patent Cooperation Treaty (Miguelez and Fink 2013). …From outside survey evidence, we know that superstar inventors are highly likely to be in the top tax bracket and, hence, directly subject to top tax rates. …There has is a strong and significant correlation between top tax rates and those inventors who remain in their home countries. The relation is strongest for superstar inventors. Figures 2 and 3 show that superstar inventors are highly sensitive to top tax rates. The elasticities imply that for a ten percentage point reduction of top tax rates from 50% to 40%, a country would be able to retain on average 3.3% more of its top 1% superstar inventors. …our results suggest that, given a ten percentage point decrease in top tax rates, the average country would be able to…attract 38% more foreign superstar inventors.

Here’s the bottom line.

The loss of highly skilled agents such as inventors might entail significant economic costs, not just in terms of tax revenues lost but also in terms of reduced positive spillovers from inventors and, ultimately, less innovation in a country.

In other words, class-warfare tax policy ultimately is very destructive for the jurisdictions that practice the politics of hate and envy.

P.P.S. I wrote a few years ago about legal tank ownership in America.

But there’s a catch. You theoretically have to disarm the gun, which would take away part of the fun.

Well, maybe you can make up for that loss of firepower by owning a flamethrower, which apparently is legal in 48 states.

Not sure I would want one of these, but I bet the answers to my IQ test for criminals and liberals would be even more interesting if homeowners added some their arsenals.

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Bad ideas definitely have the ability to cross borders.

The income tax first appeared in England, on a temporary basis during the Napoleanic wars and then permanently in 1842. It then spread like a cancer to other parts of the world, eventually reaching – and plaguing – the United States starting in 1913.

Government-run Social Security schemes were started by the Germans in 1889 under Chancellor Otto von Bismarck. Similar programs then were adopted elsewhere, including the United States as part of FDR’s misguided New Deal in 1935.

Now we have another example.

I wrote last month about how the State Department’s refugee program is a trainwreck because it is bringing Somalis (many of whom have an anti-Western ideology) to America and trapping them in government dependency with a plethora of handouts (and also creating a breeding ground for terrorists).

Well, our cousins in the United Kingdom also have a refugee program that is similarly counterproductive.

I don’t know which country was dumb enough to first create its program, but the Brits win the prize for subsidizing the most infamous terrorist (and new member of the Moocher Hall of Fame).

Here are some excerpts from a story in the U.K.-based Daily Mail.

Jihadi John and his asylum-seeking family have milked the British benefits system for 20 years, the Mail can reveal today. Housing the Islamic State executioner and his relatives in affluent parts of London has cost taxpayers up to £400,000. One landlord said Mohammed Emwazi’s family were ‘parasites’ and ‘tenants from hell’. Incredibly, they are still believed to be pocketing £40,000 a year in handouts despite there being no sign of them in Britain. …Westminster City Council is still paying the rent on the family’s £600,000 flat even though the rules say housing benefit should normally be stopped after 13 weeks.

So did all these handouts to the Emwazi family turn them into good citizens?

Hardly. One of the kids, Mohammed Emwazi has gone to the Middle East to fight for ISIS and is now infamous at “Jihadi John,” the psychopath that beheads innocent people.

MPs said they were horrified that the child of a family given refugee status, citizenship and benefits had returned the favour by orchestrating the murder of two of its citizens. …In sickening propaganda videos, his son led the beheadings of Britons Alan Henning and David Haines.

But even if Jihadi John hadn’t turned into a nutjob, British taxpayers still got a very bad deal from the Emwazi clan.

The family apparently is still on the dole, continuing an unbroken 20-year tradition of mooching off British taxpayers.

During their time in Britain, neither Jasem nor Ghaneya officially worked. …With a 12-year-old daughter, Hana, they are still believed to be claiming an estimated £7,821 a year in child benefits and child tax credits. That is on top of annual claims of about £23,400 in housing benefit, £678 in council tax support and £5,929 in jobseeker’s allowance.

Looking at this result, logical people might be tempted conclude that it’s time to rethink refugee programs.

Or, at the very least, change the rules that funnel these people into government dependency.

But since many politicians aren’t logical, there are probably British versions of Barack Obama who are urging job training programs or similar nonsense (for a humorous take on that topic, see the cartoons at the bottom of this post).

P.S. Jihadi John featured in one of the most effectively snarky anti-Obama cartoons I’ve ever seen, which is at the end of this post.

P.P.S. Switching to a different topic, I’ve written (some would say ad nauseam) about disproportionately generous pay and benefits for government bureaucrats. Particularly for the gilded class in Washington.

I think the evidence for excessive bureaucratic compensation is ironclad, particularly if you look at “quit rates” by sector.

But now we have yet another piece of evidence that the federal workforce is living on Easy Street. Check out this new polling data from Gallup.

Remember, this is polling data with federal workers describing their own status, not what taxpayers think.

So let’s give 44 percent of bureaucrats credit for honesty, which is ironic because bureaucrats in polls have acknowledged they’re more likely to be dishonest! And lazy as well.

Though the real moral of the story is not compensation. As I explain at the end of this video, the real problem is that many government jobs shouldn’t exist in the first place.

P.P.P.S. If you want to enjoy bureaucrat humor, click here, here, here, here, here, here, here, here, here, and here.

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As a taxpayer, I don’t like the fact that government employees get paid more than folks in the private sector.

But the big difference between bureaucrats and regular workers isn’t so much the pay, it’s the fringe benefits.

And perhaps the  biggest difference of all is that government bureaucrats get far more  lavish retiree benefits.

Sounds like a sweet deal, at least if you get a coveted job (or even six jobs!) with a state or local government.

It’s not a good deal for taxpayers, though, and the entire system is rather unstable because politicians and union bosses have conspired to create huge unfunded liabilities that threaten to create a death spiral for state and local governments.

Simply stated, why should productive taxpayers continue to live, work, and pay taxes in places where a huge chunk of money is diverted to pay off past promises rather than to deliver goods and services (education, parks, trash pickup, police, etc) that have some value?

Indeed, this is a big reason why places such as Detroit already have collapsed. And I fear it is just a matter of time before other local government (as well as some states such as California and Illinois) reach the tipping point.

But perhaps you think I’m being too dour? Yes, I’m prone to pessimism because of my low level of faith in the political elite. In this case, however, any sensible person should be very worried.

Let’s look at what some experts have to say about these issues.

Here are some passages from Steve Malanga’s Wall Street Journal column from earlier this month.

He starts by explaining that Jerry Brown’s big tax hike for education actually has very little to do with helping kids to learn (not that more money is the recipe for better education, as shown by this jaw-dropping chart, but that’s a separate issue).

Instead, the money is being diverted to finance the lavish pension system.

California Gov. Jerry Brown sold a $6 billion tax increase to voters in 2012 by promising that nearly half of the money would go to bolster public schools. …Last June Mr. Brown signed legislation that will require school districts to increase funding for teachers’ pensions from less than $1 billion this year in school year 2014-15, which started in September, to $3.7 billion by 2021, gobbling up much of the new tax money. With the state’s general government pension fund, Calpers, also demanding more money, California taxpayer advocate Joel Fox recently observed that no matter what local politicians tell voters, when you see tax increases, “think pensions.” …When California passed its 2012 tax increases, Gov. Brown and legislators promised voters the new rates would expire in 2018. But school pension costs will keep increasing… Public union leaders and sympathetic legislators are already trying to figure out how to convince voters to extend the 2012 tax increases and approve “who knows what else” in new levies

Sounds grim, but Mr. Malanga warns that “Californians are not alone.”

Decades of rising retirement benefits for workers—some of which politicians awarded to employees without setting aside adequate funding—and the 2008 financial meltdown have left American cities and states with somewhere between $1.5 trillion and $4 trillion in retirement debt. …the tab keeps growing, and now it is forcing taxes higher in many places.

Such as Pennsylvania.

A report last June by the Pennsylvania Association of School Administrators found that nearly every school district in that state anticipated higher pension costs for the new fiscal year, with three-quarters calculating their pension bills would rise by 25% or more. Subsequently, 164 school districts received state permission to raise property taxes above the 2.1% state tax cap. Every one of the districts cited rising pension costs.

And West Virginia.

In West Virginia, where local governments also face big pension debts, the legislature recently expanded the state’s home rule law—which governs how municipalities can raise revenues—to allow cities to impose their own sales taxes. The state’s biggest city, Charleston, with $287 million in unfunded pension liabilities, has already instituted a $6 million-a-year local sales tax devoted solely to pensions, on top of the $10 million the city already contributes annually to its retirement system. At least five more cities applying to raise local sales taxes, including Wheeling, also cited pension costs.

The column also has lots of material on the mess in Illinois.

Here’s just a sampling.

The city of Peoria’s budget illustrates the squeeze. In the early 1990s it spent 18% of the property-tax money it collected on pensions. This year it will devote 57% of its property tax to pension costs. Reluctant to raise the property levy any more, last year the city increased fees and charges to residents by 8%, or $1.2 million, for such items as garbage collection and sewer services. Taxpayers in Chicago saw the first of what promises to be a blizzard of new taxes. The city’s public-safety retirement plans are only about 35% funded, though pension costs already consume nearly half of Chicago’s property-tax collections.

All this sounds depressing, but it’s actually worse than you think.

We also have to look at the promises that have been made to provide health benefits for retired government employees.

Robert Pozen of Brookings has some very sobering data.

Public-pension funds have garnered attention in recent years for being underfunded, but a more precarious situation has received much less notice: health-care obligations for public retirees. …only 11 states have funded more than 10% of retiree health-care liabilities, according to a November 2013 report from the credit-rating agency Standard & Poor’s. For example, New Jersey has almost no assets backing one of the largest retiree health-care liabilities of any state—$63.8 billion. Only eight out of the 30 largest U.S. cities have funded more than 5% of their retiree health-care obligations, according to a study released last March by the Pew Charitable Trust. New York City tops the list with $22,857 of unfunded liabilities per household. …Total U.S. unfunded health-care liabilities exceeded $530 billion in 2009, the Government Accountability Office estimated, but the current number may be closer to $1 trillion, according to a 2014 comprehensive study released by the National Bureau of Economic Research.

By the way, these retired government workers are covered by Medicare, but Pozen explains that the unfunded liabilities exist because so many of them retire before age 65.

And their health plans sometimes cover Medicare premiums once they turn 65.

State and local governments typically pay most of the insurance premiums for employees who retire before they are eligible for Medicare at age 65. That can be a long commitment, as many workers retire as early as 50. Many governments also pay a percentage of Medicare premiums once retired workers turn 65.

But there is some good news.

States are trying to deal with this healthcare-driven fiscal Sword of Damocles.

Since 2010 more than 15 states have passed laws to reduce health-care cost-of-living adjustments—automatic benefit increases linked to the consumer-price index. Courts in eight states upheld these reductions on grounds that cost-of-living adjustments should not be considered a contractual right. Only Washington’s law was struck down in 2011, and the case is now on appeal. Some state and local governments—Nevada and West Virginia, for example—have increased deductibles and scaled back premium subsidies. Others like Ohio and Maine have reduced the health-care benefits provided to retirees. Several years ago Pennsylvania changed early retirement eligibility to 20 years of service from 15.

In many cases, though, I fear these reforms are a case of too little, too late.

So long as the fiscal burden of providing pensions and healthcare expands at a faster rate than the private economy, states and localities will push for more and more taxes to prop up the system.

But people won’t want to live in places where a big chunk of their tax payments are diverted to fringe benefits. So they’ll move out of cities like Detroit and Chicago, and they’ll move out of states like New Jersey and Illinois.

So the bottom line is that politicians and government employee unions engineered a great scam, but one that ultimately in many cases will self destruct.

And the lesson for the rest of us is that government bureaucrats should not get special goodies, particularly when they are financed by nothing other than promises to screw future taxpayers.

Pensions for government workers should be based on the defined-contribution model, and healthcare promises should be more limited and in the form of health savings accounts.

But how do you get these much-needed reforms when the government unions finance the politicians who are on the opposite side of the negotiating table?!?

P.S. Here’s a good joke about government bureaucracy. Here’s a similar joke in picture form. And we find the same humor in this joke, but with a bit more build up. And now that I’ve given it some thought, there’s more bureaucrat humor here, here (image near bottom), and here.

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I’m impressed, in a dark and gloomy way.

I thought the Italian healthcare official who showed up for work only 15 days in a nine-year period set the record for bureaucratic loafing.

Based on longevity of laxity, he definitely out-did the San Francisco paper pusher who didn’t work at all in 2012 yet still got paid $333,000.

And while it’s remarkable that a New Jersey bureaucrat simultaneously got paid for six different jobs, he presumably actually went to work every day.

But all these bureaucrats will probably be ashamed to learn that one of their counterparts in India makes the rest of them seem like workaholics.

Here are some excerpts from a report in England’s Daily Telegraph.

Even in India, where government jobs are considered to be for life, A.K. Verma was pushing it. Verma, an executive engineer at the Central Public Works Department, was fired after last appearing for work in December 1990. …Even after an inquiry found him guilty of “wilful absence from duty” in 1992, it took another 22 years and the intervention of a cabinet minister to remove him, the government said. India’s labour laws, which the World Bank says are the most restrictive anywhere, make it hard to sack staff for any reason other than criminal misconduct.

Needless to say, Mr. Verma deserves election to our Bureaucrat Hall of Fame.

And I suppose there are two broader public policy lessons to this story.

1. If you’ve ever wondered why Indians in America are so successful in America while Indians in India are relatively impoverished, bad policy is to blame, with restrictive labor laws being just one example. Yes, India has implemented some reforms, but if you check the data from Economic Freedom of the World, you can see there’s still a long way to go.

2. There’s nothing wrong with unions if they’re operating in a non-coercive setting. But when the governments tilt the playing field with pro-union legislation, bad results are almost inevitable. And the greatest problem isn’t necessarily above-market wages, but rather inefficient work practices such as an inability to fire bad performers.

P.S. If you like bureaucracy humor, here’s a message from the California public works department.

This Michael Ramirez cartoon shows how taxpayers get squeezed when politicians and bureaucrats negotiate.

We also have this flowchart on bureaucratic operations which was probably developed at DHS or HUD.

And this anecdote shows how congressional budgeting and bureaucracy intersect.

Here’s the famous satirical video on overpaid firefighters in California.

Last but not least, here are two very good posters that capture bureaucrats in action, as well as link to other amusing bureaucrat humor.

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