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Archive for the ‘Government stupidity’ Category

If you did a word-association test with people after describing jaw-dropping examples of government incompetence, you would probably get answers like “angry” or “wasteful.” Especially if you asked around April 15.

Though in some cases of spectacular and inexplicable ineptitude by government, you reach a stage where the answers might even be “preposterous” or “comical.”

Unfortunately, today we’re going to look at an example of bone-headed government behavior that can only be described as “deadly.”

That’s because the New York Times just revealed that there were very obvious red flags about one of the San Bernardino terrorists, yet federal bureaucrats apparently were too stupid, lazy, or incompetent to check sites such as Facebook and Twitter.

Tashfeen Malik, who with her husband carried out the massacre in San Bernardino, Calif., passed three background checks by American immigration officials as she moved to the United States from Pakistan. None uncovered what Ms. Malik had made little effort to hide — that she talked openly on social media about her views on violent jihad. She said she supported it. And she said she wanted to be a part of it. …The discovery of the old social media posts has exposed a significant — and perhaps inevitable — shortcoming in how foreigners are screened when they enter the United States, particularly as people everywhere disclose more about themselves online. …In an era when technology has given intelligence agencies seemingly limitless ability to collect information on people, it may seem surprising that a Facebook or Twitter post could go unnoticed in a background screening.

But you’ll be happy to know that the Keystone Cops in the bureaucracy are now contemplating whether to even look at the barn door now that we know the horses keep escaping.

…a debate is underway at United States Citizenship and Immigration Services, the agency that approves visas and green cards, over whether officers conducting interviews should be allowed to routinely use material gathered from social media for interviews where they assess whether foreigners are credible or pose any security risk.

What makes this story so aggravating is that national security is one of the few legitimate functions of the federal government.

Yet we get glaring examples of failure, perhaps because Washington has become so bloated that sensible management is increasingly difficult.

For another example of government incompetence in the area of national security, let’s go to the Middle East, where ABC News reported that a program to train supposedly moderate fighters in Syria achieved remarkable levels of inefficiency.

…only “four or five” of the first 54 U.S.trained moderate Syrian fighters remain in the fight against ISIS. …there are currently between 100 and 120 fighters in a program that was slated to have trained 5,400 fighters in its first 12 months. …So far, $42 million has been spent to develop the $500 million program which began training in April.

Wow. If my math is right, that’s about $10 million per fighter. I’m tempted to joke about getting fighters for a lot cheaper by placing an advertisement in Solider of Fortune.

But a more serious point is that  the fact that the program surely has been a huge success for the bureaucrats and contractors. After all, they got lots of taxpayer money, so who cares about actual results.

But the more serious point is why the US is involved in Syria in the first place? Writing for Reason, Steve Chapman argues for nonintervention and even makes the point that the U.S. should instead welcome Russia’s involvement.

Vladimir Putin…has sent Russian planes to bomb rebels in Syria. …he reaffirmed his commitment to Syrian President Bashar al-Assad. …Republicans regard this as a calamity. But what’s the downside? There are two main ways this gambit could go. …The first possibility is that he will inflict significant damage on Islamic State. In that case, one of our most vicious enemies would be weakened—at little cost or risk to Americans. The only thing better than defeating Islamic State is getting someone to do it for us. …The second possibility is that Putin will fail… He could find himself in a costly, bloody war. Or he might decide the prize is not worth the effort and pull back, which would dash his dreams of regional power and discredit him at home. Either way, he’s worse off, and we’re not.

Now let’s shift to a story that goes beyond routine government incompetence and deserves a special category.

Because when you read about military bureaucrats turning a blind eye to child rape in Afghanistan, words like “evil” and “soulless” are far more appropriate.

Rampant sexual abuse of children has long been a problem in Afghanistan, particularly among armed commanders who dominate much of the rural landscape and can bully the population. The practice is called bacha bazi, literally “boy play,” and American soldiers and Marines have been instructed not to intervene — in some cases, not even when their Afghan allies have abused boys on military bases, according to interviews and court records. …soldiers and Marines have been increasingly troubled that instead of weeding out pedophiles, the American military was arming them in some cases and placing them as the commanders of villages.

Unsurprisingly, as reported by the Washington Examiner, the Obama Administration is leading from behind.

The White House dodged questions…about allegations that U.S. military officials are ordering U.S. soldiers to ignore child abuse in Afghanistan committed by Afghan militia, military and police, and instead indicated that those orders reflect Defense Department policy.

Not exactly a proud moment for the United States.

To be sure, you have to make compromises with right and wrong during wartime. Heck, we were allies in World War II with one of the world’s most murderous and sinister regimes.

But surely we can disallow child rape on American military bases!

Let’s return to a more mundane example of bad policy, one that shows the U.S. government can waste money overseas just as effectively as it wastes money at home.

U.S. taxpayers footed the bill for a $43 million natural-gas filling station in Afghanistan, a boondoggle that should have cost $500,000 and has virtually no value to average Afghans… A Pentagon task force awarded a $3 million contract to build the station in Sheberghan, Afghanistan, but ended up spending $12 million in construction costs and $30 million in “overhead” between 2011 and 2014.

Wow. Reminds me of being in a meeting last decade and a representative of the Bush Administration was arguing that its nation-building exercise (I forget whether it was Iraq or Afghanistan) was going well because we had successfully built so many schools and sewer systems.

I was being a curmudgeonly libertarian and made myself unpopular by pointing out that I didn’t think it was the responsibility of the federal government to fund those projects in the United States, much less overseas.

Let’s end where we started, with an example of government incompetence that could have deadly consequences.

Hillary Clinton’s “reset” with Russia was a miserable failure and the United States increasingly is worried about Putin’s adventurism. Yet the federal government didn’t exercise sufficient oversight to make sure that citizens of a potential enemy didn’t get to work on classified computer code.

The Pentagon was tipped off in 2011 by a longtime Army contractor that Russian computer programmers were helping to write computer software for sensitive U.S. military communications systems…the software they wrote had made it possible for the Pentagon’s communications systems to be infected with viruses. …the work had been done in Moscow and elsewhere in Russia.

Doesn’t exactly leave one with a great feeling of confidence.

So there are two lessons from today.

First, politicians and bureaucrats and wasteful and incompetent, and that applies even in areas where there is a legitimate role for government.

Second, we’ll have a better chance of getting sensible and competent decisions if government is a lot smaller. After all, it will be a lot easier to have oversight when government is doing 100 things instead of 10,000 things.

Here’s what I wrote back in 2014.

There are some legitimate functions of government and I want those to be handled efficiently. But I worry that effective government is increasingly unlikely because politicians are so busy intervening in areas that should be left to families, civil society, and the private sector.

Mark Steyn made the same point in a much more amusing fashion.

Which is why these cartoons are such a good depiction of government.

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I’ve admitted before that I have no idea whether global warming is a real problem, but I can say with considerable certainty that there are two reasons why I’m very skeptical of the environmental policy agenda.

First, the serious environmentalists believe in central planning and other forms of statism.

Second, radical environmentalists are nutjobs.

In case you think I’m exaggerating on the second point, consider these examples.

Then there’s the super-nutty category.

Now let’s look at a new development in the field of global warming (or climate change, or whatever term is now being used).

The Washington Examiner opines on the bizarre tendency on the left to say that weather causes terrorism (I’ll let readers judge whether this belongs in the “serious” category or “nutjob” category).

President Obama said ahead of the event that began this week. “What a powerful rebuke to the terrorists it will be, when the world stands as one and shows that we will not be deterred from building a better future for our children.” One could hardly blame the leadership of the Islamic State if they had a hearty laugh at this peculiar response to its attacks on Paris last month. The same could be said about the multiple instances in which Obama and high-ranking members of his administration have asserted that climate change poses a greater national security threat than terrorism… The new fad of blaming climate change for terrorism, or treating the two as comparable security issues, is troubling. …Bernie Sanders’ recent assertion in a presidential debate, that “climate change is directly related to the growth of terrorism,” was not an aberration, but increasingly a part of left-wing orthodoxy in the U.S.

The Examiner then points out the obvious. Or at least something that should be obvious.

Terrorism is not caused by the weather. …terrorism is caused mostly by radical Islamist ideology. There are appropriate law enforcement, intelligence, propaganda and occasionally military responses to it. But when you hear politicians talk about global warming as the cause of terrorism, take it as an indication that they aren’t serious people, and should not be trusted with complex affairs of state.

By the way, our friends on the left can’t even get their stories straight. While President Obama and others are asserting or implying that terrorism is related to climate change, other prominent statists say terrorism is caused by inequality.

Thomas Piketty, the French economist who is infamous for a theory rejected by the vast majority of economists and a tax plan that would cripple the economy and impose harsh misery on poor people, has now decided to pontificate on inequality and terrorism. Here’s some of what’s being reported by Business Insider.

The new argument, which Piketty spelled out recently in the French newspaper Le Monde, is this: Inequality is a major driver of Middle Eastern terrorism, including the Islamic State attacks on Paris earlier this month — and Western nations have themselves largely to blame for that inequality. …concentration of so much wealth in countries with so small a share of the population, he says, makes the region “the most unequal on the planet.” …Those economic conditions, he says, have become justifications for jihadists… Terrorism that is rooted in inequality, Piketty continues, is best combated economically.

To be fair, there probably is a bit of truth to the notion that young men in the Middle East are susceptible to radical ideologies in part because of economic reasons. They may live in oil-rich countries, but there is very little opportunity because of corrupt statism.

And it’s never good for a society to have young men with lots of free time and very little hope.

But the problem in these nations (above and beyond radical strains of Islam) is that bad government policy cripples opportunity. The resulting inequality (remember, the people connected to government are rich) is largely a consequence of the statism.

So the notion bigger government will make things better is rather naive, to say the least.

Though statist policies will mean less growth, and a smaller economy means a smaller carbon footprint, so maybe our friends on the left actually do have a coherent strategy. Simply make everyone poor. That ways there’s less carbon and less inequality!

Though don’t think for even a nanosecond that Obama, Piketty, and the rest of the elite will suffer. After all, leftists are grotesque hypocrites on environmental issues, as you can see here and here.

And don’t delude yourself into thinking that any of the left’s policies will reduce terrorism either.

P.S. But to close on an upbeat note, we have some decent environmentalist humor here, here, here, and here.

P.P.S. And if you prefer terrorism humor, click here, herehere, and (at the end of the posts) here and here.

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The Transportation Security Administration has become infamous over the years for things that it doesn’t allow on planes.

Consider these examples of the Keystone Cops in action.

Confiscating a plastic hammer from a mentally retarded man.

Detaining a woman for carrying breast milk.

Hassling a woman for the unexplained red flag of having sequentially numbered checks.

Demanding that a handicapped 4-year old boy walk through a metal detector without his leg braces.

Putting an 8-year old cub scout on the no-fly list.

o Stopping a teenager from flying because her purse had an image of a gun.

o Seizing raygun belt buckles and Kitty Cat keychains.

Though, to be fair, other governments are similarly brainless.

I was quite amused by this bit of news from Ireland.

When passing through security at the airport, a Minion fart gun…was seized from a young toddler and taken away. The security officers claimed it was a ‘threat’ and took the toy gun away from the child.

Just in case you think a “fart gun” is too realistic and that a potential terrorist might grab it from the child and use it to take over the plane, here’s a picture to put your mind at ease.

And let’s not forget that airport bureaucrats all over the planet are on guard against criminal toiletries. I’ve had obviously dangerous toothpaste and deodorant confiscated not only in the United States, but also at airports in seemingly sensible places such as Australia and Cayman.

But let’s be fair. The TSA gets a lot of attention for things it doesn’t allow on planes, so perhaps it is time to give the bureaucrats some attention for the things it does allow.

Unfortunately, as reported by Politico, the TSA apparently is better at blocking fake weapons rather than real weapons.

…news that the Transportation Security Administration failed to detect 67 of 70 mock weapons in a secret test shook the Department of Homeland Security, which oversees it, and led to renewed calls for the TSA to clean up its act. …Rep. John Mica, a Florida Republican who used to chair the transportation committee, said the 95 percent failure rate is evidence of a sweeping conceptual failure. …“They’re spending billions of dollars on a huge screening bureaucracy,” he added. …the TSA also cannot publicly point to many significant attacks thwarted at airport gates, leading experts to insist that its protocols should be considered largely ineffective. Rafi Sela, president of international transportation security consultancy AR Challenges, said the agency’s nearly $8 billion budget is largely being misspent on a misguided model.

Great, we’re flushing $8 billion down the toilet on a system that does a bad job based on a bad methodology.

Heck, the bureaucrats can’t even stop the wrong people from getting through security.

A man with a stolen boarding pass got through airport security in Salt Lake City and checked in at a gate for a flight to California… Salata, who is on the sex offender registry in Utah, grabbed a boarding pass that a woman accidently left at a check-in kiosk and used it to get through a Transportation Security Administration checkpoint, said Craig Vargo, chief of airport police.

He was only stopped because the woman obtained another boarding pass.

Salata was detained when the woman who had left the pass checked in using a replacement ticket that had been uploaded to her phone.

The TSA tried to rationalize this goof by stating that at least he wasn’t able to smuggle any guns or bombs past security.

TSA spokeswoman Lori Dankers said an agent made a mistake in identifying Salata, but the man was properly screened to determine if he was carrying anything dangerous.

Gee, how reassuring.

Now that we’ve mocked the TSA for stopping harmless items and allowing potentially dangerous items (or people), let’s contemplate some actual solutions.

In previous columns, I’ve argued that it’s time to put the private sector in charge, citing the good work of Arnold Kling and Nick Schulz. And as Steve Chapman has explained, there were lots of benefits to the pre-TSA system.

Let’s now add to that list.

We’ll start with some passages from Jeff Jacoby’s column in the Boston Globe.

He starts by beating up on the TSA.

Fourteen years after the creation of the TSA, there is still no indication that the agency has ever caught a terrorist, or foiled a 9/11-type plot in the offing. Conversely, there are reams of reports documenting the inability of TSA screeners to spot hidden guns, knives, bomb components, and other dangerous contraband as they pass through airport checkpoints. It’s doubtful that anyone is still capable of being surprised by a fresh confirmation of the TSA’s incompetence… The Transportation Security Administration, which annually costs taxpayers more than $7 billion, should never have been created. The responsibility for airport security should never have been federalized, let alone entrusted to a bloated, inflexible workforce.

He then points out that there’s a better approach.

The airlines themselves should bear the chief responsibility for protecting planes and passengers at airports. After all, they have powerful financial incentives to ensure that flights are free of danger, while at the same time minimizing the indignities to which customers are subjected. Their bottom line would be at stake. The TSA feels no such spur. Effective defense against airline terrorism doesn’t require patting down grandmothers or confiscating eyedrops. It requires sophisticated counterterror intelligence (which is what stopped the 2006 liquid bomb plot), and it calls for passengers to be vigilant (which is what ultimately foiled the underwear and shoe bombers). The TSA supplies neither.

A column by Adam Summers in the Orange County Register reaches the same conclusion.

He starts with the indictment of the current system.

TSA’s performance has steadily declined. A 2002 USA Today report revealed that undercover agents got bombs and weapons through security about a quarter of the time. By 2007, the failure rate had increased to 75 percent. Since then, the TSA has increased the number of screeners from 30,000 to 46,000 and spent $550 million on new screening equipment and agent training, yet somehow it continues to get worse. …The TSA has also perpetuated – and even expanded – failed and unproven programs, such as the Screening of Passengers by Observation Techniques program, which seeks to weed out evildoers by looking for certain behavioral cues among passengers. The GAO…recommended shuttering the program. Nonetheless, the agency has spent roughly $1 billion on SPOT since 2007 and is defiantly moving forward to “enhance” the program.

And then points to a sensible solution.

The TSA has proven to be abusive, unaccountable and totally ineffective. To restore some sense of competency and accountability, the agency should simply be abolished, and security should be made the responsibility of private airlines and airports, which have a strong incentive to prevent their customers from being killed. Competition among private providers would also lead to adoption of the most efficient and effective security measures while still respecting travelers’ rights.

Wow, what a shocking conclusion. The private sector is more competent than the government. Knock me over with a  feather!

Let’s close with some humor (though the joke is on us). The column by Adam Summers mentioned TSA’s SPOT program, which even the Government Accountability Office has recognized as a wasteful failure.

Well, the folks at Reason have a very amusing video on the characteristics that might lead SPOT bureaucrats to identify you as a potential terrorist.

P.S. Check out this amazing picto-graph if you want more information about the failures of the TSA.

P.P.S. For more TSA humor, see this, this, this, this, this, and this.

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When I wrote earlier this year about “Europe’s suicidal welfare state,” it wasn’t so that I could make points about excessive spending and demographic decline.

Yes, those are very important issues. But I was focusing instead on the fact that Europe’s welfare states have a masochistic habit of giving handouts to terrorists.

So I wasn’t surprised to learn that some of the dirtbags who launched the recent terror attacks in Paris have been sponging off taxpayers.

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

The former wife of Paris bomber Ibrahim Abdeslam has broken her silence to say he was a jobless layabout… Speaking from her home in Moleenbeek, Brussels, Niama, 36, said: ‘…He often slept during the day...Despite his diploma as an electrician, he found no job,’… Money was tight for the couple. ‘We lived on unemployment benefit which was only €1,000 a month between us so we worried a lot about money.’

By the way, money wasn’t “tight for the couple.” The handouts they got from the Belgian taxpayers gave them an income higher than the world average. And I’m guessing that the unemployment benefit wasn’t the only bit of mooching they did given the destructive lavishness of European welfare systems.

Ibrahim wasn’t the only terrorist with a snout in the public trough.

Here are some details from a story in the American Spectator.

Before he blew himself up outside a French soccer stadium, Bilal Hadfi lived in state-subsidized housing. …Open wallets as much as open borders doom Europe. Harboring shiftless populations alienated from the surrounding culture by religion asks for trouble. Give them blank checks and watch them fill up the blank spaces of indolence with destruction. …They pay back the dole with gunfire.

These are just two of the terrorists, but I’m guessing we’ll soon learn that others also were mooching off taxpayers.

And I can’t help but wonder whether the self-loathing that presumably occurs among some welfare recipients actually contributes to radicalism.

By the way, the Moocher Hall of Fame has a special section for deadbeats who want to kill taxpayers. Members of this Terror Section of the MHoF include:

* Abdul from Australia is an esteemed member of the Hall of Fame’s terror wing, having received 19 years of welfare while plotting to kill the people who were paying for his life of leisure.

* Keeping with that theme, let’s also recognize Anjem, who got elected to the Hall of Fame for collecting about $40,000-per year in handouts while spewing hate and recruiting other “fanatics to copy him by going on benefits.”

* The Tsarnaev brothers are most infamous for the Boston Marathon bombing, but let’s also revile them for being scroungers who thought it was okay to live off the work of others.

* Jihadi John, the ISIS dirtbag who is infamous for beheading innocent people, grew up with a family that sponged off British taxpayers for two decades.

P.S. In a truly spectacular example of government incompetence, a British jihadist actually was employed in law enforcement, ostensibly to fight against Islamic extremism!

P.P.S. American readers shouldn’t get too smug about the stupidity of our terrorism-subsidizing cousins on the other side of the Atlantic. We also have self-destructive policies that subsidize terrorism.

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Advocates of limited government favor a small public sector because more resources in the productive sector of the economy translates into faster growth, more job creation, and higher living standards.

Statists, by contrast, favor big government for two main reasons. First, many of them belong to well-connected interest groups that have their snouts in the federal trough. Second, some of them sincerely think government spending “stimulates” an economy and/or “helps” people.

I want to address the latter group of statists, most of whom are well meaning.

I’ve learned over time that such voters generally don’t pay that much attention to economic arguments.

To the extent they sometimes favor small government, it’s because they think Washington wastes money. Indeed, I suspect a majority of voters would agree with P.J. O’Rourke that “giving money and power to government is like giving whiskey and car keys to teenage boys.”

Yet many of those voters (perhaps even including some of the ones that recognize that DC is riddled with waste, fraud, and abuse) can be persuaded to support bigger government. Having engaged in thousands of conversations with such people over several decades, I think they’re motivated by a desire to be part of a society that “cares.” So, regardless of Washington’s track record of exacerbating problems rather than solving them, these folks sometimes think more government is the right approach. Like second weddings, this is a triumph of hope over experience.

Today, at the risk of jumbling my analogies, let’s try to convince such people that you don’t want a second wedding if it means you’re getting hitched to an institution that is unavoidably wasteful and incompetent.

And we have some fresh eye-popping evidence. Here are some excerpts from an exposé published by the Washington Post.

…the government has spent more than $1 billion trying to replace its antiquated approach to managing immigration with a system of digitized records, online applications and a full suite of nearly 100 electronic forms. A decade in, all that officials have to show for the effort is a single form that’s now available for online applications and a single type of fee that immigrants pay electronically. The 94 other forms can be filed only with paper.

Amazing. After 10 years and $1 billion, the net result is a total cluster-you-know-what.

…officials at the Department of Homeland Security, which includes USCIS, were aware that the project was riddled with hundreds of critical software and other defects. …Only three of the agency’s scores of immigration forms have been digitized — and two of these were taken offline after they debuted because nearly all of the software and hardware from the original system had to be junked. ..A report last year from the DHS inspector general’s office said it sometimes took up to 150 clicks for employees to navigate the system’s various complex features and open documents.

So is the incompetent contractor (IBM) getting punished? Are any of the bureaucrats in charge of the project getting fired?

Of course not. This is government! So why you waste some money, that’s merely a prelude to wasting even more money.

This project, run by U.S. Citizenship and Immigration Services, was originally supposed to cost a half-billion dollars and be finished in 2013. Instead, it’s now projected to reach up to $3.1 billion and be done nearly four years from now.

By the way, the incompetence revealed in this story this is not an argument for immigration or against immigration.

My point is simply that governments have long track records of squandering other people’s money, with this story simply being another straw on the camel’s back.

Or maybe it would be better to describe it as another bit of dead weight financed by over-burdened taxpayers.

I don’t know if this will make anyone feel better, but other governments are similarly incompetent and foolish.

Here’s an example of government blundering from overseas. As reported by the UK-based Guardian, the European Commission just admitted that it has successfully process 0.00015 percent of refugees.

EU members states agreed in September to relocate 160,000 people in “clear need of international protection” through a scheme set up to relocate Syrian, Eritrean, and Iraqi refugees from the most affected EU states – such as Italy and Greece – to other EU member states. So far 116 people have been relocated, and only 1,418 places have been made available by 14 member states, according to data released on Tuesday by the European Commission.

Wow. It’s been a while since I was a student, but I remember that you need 70.0 percent for a C and 60.0 percent to avoid failing.

With that in mind, I wonder what sort of grade you get for 0.00015 percent? Is there such as thing as F-, though I guess Z- would be more appropriate.

Here’s a graphic from the article.

By the way, the EU’s incompetence at processing refugees is one issue. Another issue is whether European nations should be granting refugee status to hundreds of thousands (and eventually millions) of people from cultures that don’t assimilate very well.

And I imagine that refugee status in Europe means access to welfare, so the system presumably creates the same perverse incentives we find on the American refugee program.

But for today, I’m simply focused on the fact that government bureaucracies are spectacularly incompetent.

Yet there are still many people who want to give more power and money to politicians.

Let’s close with a serious point.

Unless you’re an anarcho-capitalist, there are some things you want government to do, and you want those things to be done well.

So how, given the natural incompetence of the public sector, can you get good (or at least acceptable) results?

The only feasible answer is to have small government, as Mark Steyn has explained with his usual dose of sarcasm. A bloated public sector guarantees slipshod performance everywhere. But if the federal government concentrates on just a few tasks, oversight and monitoring will be easier and it will be easier to weed out incompetence.

And this isn’t just theory. The European Central Bank has produced a measure of public sector efficiency and their research shows that smaller governments are much more competent at producing desired results.

P.S. Bizarrely, some folks acknowledge government incompetence but think the right solution is more power for government.

P.P.S. Some of this is common sense. What government do you think is more competent and effective, France with its big government or Switzerland with its medium-sized government? Where do you think government is more effective, Singapore with its small government or the United States with its medium-sized government?

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Yesterday, I shared several stories that exposed the festering corruption of Washington.

Today, let’s look at one issue that symbolizes the pervasive waste of Washington.

Medicare is the federal government’s one-size-fits-all health program for the elderly. Because of its poor design, it bears considerable responsibility for two massive problems.

  1. It contributes to the systemic third-party payer problem in American health care.
  2. It exacerbates America’s long-run challenge of excessive entitlement spending.

But there’s another issue. Medicare also has a very serious problem with fraud. As is so often the case with government programs, the offer of free money encourages unethical behavior.

Well, we have some good news and bad news about Medicare fraud.

As reported by the Wall Street Journal, the good news is that there is a small effort to catch fraudsters who bilk taxpayers.

Recovery audit contractors, as they are known, recouped $2.4 billion in improper payments in 2014, down from $3.7 billion in 2013 before the agency scaled back other audit activities and temporarily suspended the program… Those recoveries represent just a fraction of the total amount Medicare estimates it spends on incorrect payments. The Medicare program made $58 billion in improper payments to medical providers and health plans in 2014, according to PaymentAccuracy.gov, a federal website that tracks agencies’ estimates of waste.

But the bad news is this small program is being curtailed.

The federal Medicare agency is sharply cutting back the work of auditors that review hospital claims and seek to recoup improper payments for the government… Starting in January, the auditors will be able to review only 0.5% of the claims the agency pays to each hospital or provider every 45 days, according to an Oct. 28 letter to the contractors. That is a quarter of the prior threshold: 2% of claims. The contractors say the new directive, in what is known as a “technical direction letter,” will further limit their ability to pursue undue payments.

Readers are probably wondering why this effort is being hamstrung instead of expanded.

Well, you won’t be surprised to learn that the folks who benefit from waste want to keep the gravy train rolling.

The latest step is a sign of how the $600-billion-a-year Medicare program can struggle to effectively rein in improper payments, fraud and waste, sometimes under pressure from medical providers… The Medicare agency “is getting a lot of pressure from the provider community to scale back the [audit] program,” said Kristin Walter… Hospital representatives welcomed further restrictions on the auditors.

Sort of like burglars welcoming “further restrictions” on police officers.

Unfortunately, the interest groups benefiting from waste and fraud have allies in government.

The American Thinker has a nauseating story about the fraudulent actions of a hospital in Houston

The president of Riverside, his son, and five others were arrested on October 4 as part of a nationwide Medicare fraud sweep.  Earnest Gibson III, chief executive officer of Riverside General Hospital for 30 years, has been charged with bilking $158 million out of Medicare over the last seven years. …Friday’s arrests at Riverside came nine months after the arrest of Mohammad Khan, the hospital’s acting administrator, who pled guilty to his role in the Medicare fraud scheme…the Centers for Medicare and Medicaid Services suspended payments to Riverside.

You may be wondering why this is a nauseating story when it appears that some bad guys were nailed for screwing taxpayers.

Well, now we get to the disgusting part. A politician in Washington has been fighting to enable that bad behavior.

Sheila Jackson Lee, congresswoman for Houston’s 18th district…wrote CMS Acting Director Marilyn Tavenner requesting she reconsider the agency’s decision. …Jackson Lee…asks taxpayers who have already been bilked out of hundreds of millions of dollars to pour more money into a…hospital run by alleged crooks…while administrators and politicians rake in more dough.

Sadly, the Congresswoman’s political pressure generated results.

…a month after Jackson Lee appealed to CMS…, 70% of the hospital’s Medicare payments were restored.  CMS lifted the suspension even though federal investigators were only two months away from arresting Gibson and the others.  Jackson Lee’s intervention seems to have caused even more taxpayer monies to be directed toward a hospital brimming with corruption. …This is why Washington, D.C. is broken.  Like Jackson Lee, too many politicians think that redistributing other people’s hard-earned money into the pockets of potential felons is okay as long as they get political benefit.

By the way, it’s not just Democrats. The Daily Surge reports that some Republicans are helping providers rip off taxpayers.

…efforts to rid Medicare of waste, fraud and abuse have been stymied by the power of the hospital lobby that refuses to payback excessive payments made by Medicare and are working with friends and allies in government to ensure the improper payments are never returned to the taxpayers. …at least one GOP members, Rep. Sam Graves (R-MO) has actually introduced legislation further limiting the ability of the auditors to sniff out waste. His bill would block audits of Medicare providers unless their estimated error rate exceeded 40% of total billing. More than one third of all Medicare bills would have fraudulent before an audit could be triggered. So much for good government.

Ugh, makes me want to take a shower.

So what’s the bottom line? Unfortunately, fraud is an inherent part of government. When politicians create redistribution programs, amoral and immoral people will figure out ways to maximize their share of the loot.

In the case of Medicare, it means that providers have huge incentives to over-charge, over-diagnose, over-treat, and over-test.

After all, thanks to third-party payer, the patient doesn’t care.

That’s why I’m in favor of programs to combat fraud. And the RAC program doesn’t even cost taxpayers any money since the auditors are compensated by getting a slice of the improper payments that are recovered.

Imagine that, a policy where the incentives are to save money for taxpayers!

However, the only long-run and permanent solution is to shrink the size of government.

And that’s why it’s time to restructure Medicare. We have 50 years of evidence that the current approach doesn’t work.

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My first instinct, when arguing against higher taxes, is to pontificate about the negative impact of high marginal tax rates and punitive effect of double taxation on saving and investment.

Those are very legitimate concerns, and they’re the obvious things for an economist to highlight.

But I’m going to confess that my main motive for fighting tax increases is that I don’t think we should reward incompetent and feckless politicians by giving them more of our money.

I routinely cite horrifying cases of government waste and bureaucratic stupidity and it galls me to think that American families might have to sacrifice more of their income to the gaping maw of Washington.

And now I have more reasons to despise the political class. Check out these three additional examples of foolish waste.

The Washington Examiner reports that agents from the Drug Enforcement Administration got illegal bonuses after “partying” with prostitutes.

Drug Enforcement Agency officials linked to sex parties and prostitutes paid by drug cartels weren’t fired but rewarded with $95,000 in performance bonuses, according to a shocking new report from the Justice Department’s inspector general. What’s more, the bonuses weren’t allowed. …The report outraged House Oversight and Government Reform Committee Chairman Jason Chaffetz…”It is a disgrace that taxpayer dollars are being wasted on those who violate our trust and abuse their positions.”

I’m particularly impressed that they didn’t just hang out with normal prostitutes. These hookers were provided by the drug cartels!

I’m surprised they didn’t get free cocaine as well.

Our second story is from the Los Angeles Times, and it reveals that the Federal Air Marshall program is an ineffectual waste of money.

I realize “ineffectual waste of money” applies to most everything the government does, but this program must be uniquely wasteful.

…the federal air marshal program is mired in…allegations of misconduct and management turmoil, prompting some in Congress to question whether the multi-billion dollar experiment has outlived its usefulness. …At a price tag of $9 billion over the past 10 years, Duncan called the program “ineffective” and “irrelevant.”

I had no idea the government was squandering almost $1 billion per year on this empty gesture of security theater.

But I guess the costs add up with the Marshalls get to fly in first class while the taxpayers are stuck in coach.

Some air marshals have complained they feel they are merely “riding the bus” as they hopscotch around on domestic and international planes. …In addition, the agency, part of the Department of Homeland Security, has been hit recently with several scandals. In 2012 some agents were accused of setting up sexual liaisons to coincide with their work flights. …some Chicago-based marshals allegedly disguised themselves as pornography producers to hire prostitutes after some trips. …the program “has come to be a symbol of everything that’s wrong with the DHS, when 4,000 bored cops fly around the country First Class, committing more crimes than they stop.”

But not every Air Marshall was satisfied by first class travel and hookers.

“I hated every day of it,” said former air marshal Jay Lacson, who said he is suing after being fired for inappropriately releasing confidential job information. “I couldn’t stay awake. I got colds. You get complacent.” He added, “They don’t need the agency anymore.”

To complete a trifecta of brainless government waste, now let’s turn to the Equal Employment Opportunity Commission.

As recounted by my colleague Walter Olson, this bureaucracy sued a trucking company for failing to provide “reasonable accommodation” to Muslim truck drivers who didn’t want to deliver alcoholic beverages.

In 2013 the commission sued the Star Transport Co. in Illinois for failing to provide a reasonable accommodation to two Muslim truck drivers when it dismissed them for refusing to haul booze

Since the EEOC bureaucrats already have gone after a trucking company that wanted to weed out alcoholics (seemingly a prudent step), I briefly wondered whether these pinheads are trying to tilt the playing field in favor of air cargo and/or railroads.

But that assumes they know enough about investing to manipulate the market. But if they were that clever, they probably wouldn’t be languishing in the federal bureaucracy.

Instead, I think the EEOC simply wants to make sure it’s still recognized as America’s most clueless and malicious bureaucracy.

P.S. Since today’s topic is wasteful spending, I suppose it’s appropriate to share these excerpts from a report by the Daily Caller.

Entitlement spending accounts for most erroneous federal payments, and it’s only going to get worse, Comptroller General Gene Dodaro told Congress Thursday. “Improper” Medicaid, Medicare, and Earned Income Tax Credit disbursements made up 75 percent of all erroneous federal payments in fiscal year 2014, and were the main driver behind a nearly $19 billion increase in improper payments — from $105.8 billion in fiscal year 2013 to $124.7 billion in fiscal year 2014… Medicare incorrectly paid out one of every $10 the program spent last year, or $59.9 billion of its $603 billion budget.

Something to keep in mind next time someone argues that we can stick our heads in the sand and not enact genuine entitlement reform.

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