Archive for the ‘Waste’ Category

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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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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Since the Bureaucrat Hall of Fame is getting crowded, I’ve decided we need a system to limit new entrants.

So today we’re doing an experiment. We’ll look at two separate stories about lazy and overpaid bureaucrats, and the comments section will determine which one actually is most deserving of joining the Hall of Fame.

Let’s start in Italy, where Alberto Muraglia stakes his claim to membership. Here are some excerpts from a story in the UK-based Times.

Video footage of a policeman clocking in for work in his underpants before allegedly heading back to his bed has become the symbol of an embarrassing absenteeism scandal among council employees in San Remo, on the Italian Riviera. Alberto Muraglia, a pot-bellied, 53-year-old officer, was secretly filmed as he clocked on at council offices. He lives in the same building, a converted hotel, where he occupies a caretaker flat — allowing him to register his presence at work, and then go back to bed, it is alleged.

To be fair, our Italian contestant has an excuse for his truancy.

Though it’s about as plausible as the Groucho Marx quote, “Who are you going to believe, me or your own eyes?”

Mr Muraglia’s wife, Adriana, said the family had an alibi for every instance in which her husband was suspected of clocking in at 5.30am, opening the gates to the council building, and then returning to bed. “Some mornings, if he was a few minutes late pulling on his trousers, he would clock in in that manner and then get fully dressed immediately after and go off to work,” Mrs Muraglia told La Stampanewspaper. “Some mornings he may have forgotten, and he telephoned me to clock in on his behalf.”

In any event, Signor Muraglia is not the only bureaucrat scamming the system.

More than a hundred employees — 75 per cent of the council workforce — are under investigation for allegedly skiving off in the resort town…investigators…filmed employees swiping their time cards, and sometimes those of multiple colleagues, before turning tail and heading off to pursue other interests. One employee, filmed paddling a kayak on the Mediterranean, is alleged to have spent at least 400 hours away from his desk in the planning office, a dereliction of duty estimated to have cost San Remo council more than €5,600.

Though I have to say 400 hours away from his desk is chicken feed compared to the Italian doctor who worked only 15 days in a nine-year period.

And I like how the bureaucrats awarded themselves bonuses for their…um…hard work.

Eight of the suspected skivers shared a €10,000 productivity bonus last year.

Just like the IRS bureaucrats and VA bureaucrats who got bonuses for improper behavior.

I guess there must be an unwritten rule in government: The worse your performance, the higher your compensation.

Now let’s see how Alberto compares to our American contestant. As reported by the Contra Costa Times, former City Manager Joe Tanner is scamming taxpayers for a lavish pension, yet he’s asking for more on the basis of a shady deal he made with the City Council.

By working just two and a half more years, retired Vallejo City Manager Joseph Tanner boosted his starting annual pension from $131,500 to $216,000. He wants more, claiming he’s entitled to yearly retirement pay of $307,000. …he is now taking his six-year dispute to the state Court of Appeal. At issue is whether CalPERS must pay benefits on a contract Tanner and the Vallejo City Council concocted to boost his pension.

An extra $85,000 of pension for the rest of his life just for working 2-1/2 years?

Geesh, and I though the Philadelphia bureaucrat who is getting $50,000 of yearly loot for the rest of her life, after just three years of “work,” had a good deal. She must be feeling very envious of Mr. Tanner.

Yet Mr. Tanner isn’t satisfied.

Here’s the part that seems like it should be amusing, but it’s not actually funny when you realize that government employee pensions are driving states into fiscal chaos.

Ironically, Tanner was a critic of pension excesses. …Yet his personal spiking gambit was breathtaking. The case exemplifies how some top public officials try to manipulate their compensation to grossly inflate their retirement pay. …Tanner’s quest for another $90,000 a year, plus inflation adjustments, for the rest of his life is unreasonable.

Here’s how he schemed to pillage taxpayers.

His first contract with Vallejo called for $216,000 in base salary, plus a list of add-on items that would soon be converted to salary, bringing his compensation to $306,000. But when CalPERS advised that the amount of those add-ons would not count toward his pension, he insisted the contract be fixed. The result: His contract was amended. The add-ons were eliminated and his base salary was simply increased to $306,000, plus management incentive pay and other items that brought the total to about $349,000. If CalPERS used that number, his pension would have started at $307,000 a year. CalPERS says it was an obvious subterfuge. The amended contract was never put before the City Council at any public meeting. And there was never a truthful public explanation for it.

Of course there wasn’t a truthful explanation.

Whether bureaucrats are negotiating with other bureaucrats or whether they’re negotiating with politicians, a main goal is to hide details in order to maximize the amount of money being extracted from taxpayers.

By the way, the example of Mr. Tanner is odious, but it’s not nearly as disgusting as what happened in another California community.

Before inviting readers to vote, I want to make a serious point. Government employee pensions are a fiscal black hole because they are “defined benefits” (DB plans), which means annual payments to retirees are driven by formulas. And those formulas often include clauses that create precisely the perverse incentives exploited by Mr. Tanner.

The right approach is to reform the system so that bureaucrats instead are in a “defined contribution” system (DC plans), which basically operates like IRAs and 401(k)s. A bureaucrat’s retirement income is solely a function of how much is contributed to his or her account and how much it earns over time. By definition, there is no unfunded liability. There’s no fiscal nightmare for future taxpayers.

Now that I have that cry for fiscal prudence out of my system, I invite readers to vote. Does the shirking underwear-clad Italian bureaucrat deserve to join the Hall of Fame, or should that honor be bestowed on the scheming and hypocritical American bureaucrat?

P.S. While I think DC plans are inherently superior (and safer for taxpayers) than DB plans, I will acknowledge that some nations manage to run DB plans honestly.

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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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I created the Bureaucrat Hall of Fame as a way of giving special attention to government employees who go above and beyond the call of duty in their efforts to get paid way too much in exchange for doing far too little.

While my standard practice is to bestow this honor on individual bureaucrats, sometimes I bend the rules and give the award to an entire group, such as the paralegals at the Patent and Trademark Office who were paid – and even given bonuses – even though they were never assigned any work.

Well, not doing work must be part of the culture at that bureaucracy. The Washington Post reports on an employee who apparently was supposed to do some actual work but instead gamed the system.

A federal patent examiner racked up more than 18 weeks of pay last year for work he didn’t do, but his manager didn’t notice until he received an anonymous letter claiming the employee only showed up for his job sporadically and turned in work that was “garbage.” …The examiner, a poor performer for years who was never disciplined, came and went as he pleased… He frequently told colleagues he was leaving work to go to the local golf driving range, play pool or grab a beer — then claimed a full day on the job on his time sheet. On most of the days when the examiner was gaming the system, “there was no evidence” he even went to the office or did any work on his government-issued laptop, investigators found.

My initial reaction to this story is that American bureaucrats need to learn some lessons from their foreign counterparts.

Doing zero work for 18 weeks and still getting paid may sound impressive, but it’s trivial compared to the Indian bureaucrat who managed to get paid up until last year even though he stopped showing up for work back in 1990. Or the lavishly compensated Italian government employee who only worked 15 days over a nine-year period.

But I’m not an Indian or Italian taxpayer. I get irked by when my tax dollars are being squandered.

So why didn’t his supervisor notice that something was amiss?

Well, perhaps that person didn’t notice because he or she was never around.

The examiner’s supervisor works from home more than 30 hours a week.

And even if the supervisor was paying attention, it might not have mattered.

…union rules allowed supervisors limited oversight over their employees.

Though there were plenty of warning signs that should have been noticed.

“Despite numerous red flags and the [patent office’s] internal controls, the agency did not review [the examiner’s] time and attendance records to determine if he was claiming time for work he did not perform,” the 27-page investigation by Acting Inspector General said. The patent office had received numerous complaints from inventors and their attorneys that the examiner was not responsive to their e-mails and phone calls.

If you’re a taxpayer, you’ll be delighted to know that the bureaucrat was making a very comfortable salary.

And even though the scam has been ended, you’ll also be happy to learn that he or she will leave with a clean personnel record.

The employee, a GS-11 making more than $70,000, quit two hours before he was scheduled to meet with the inspector general’s office, the report said. The union representing patent examiners told him that if he resigned, his personnel record would stay clean, not showing that he was under investigation for falsifying hours.

Gee, isn’t that wonderful. Anybody want to guess whether this person winds up working for another government agency?

The final part of the story nicely captures much of what’s wrong with Washington.

An independent review last month by the National Academy of Public Administration…praised the agency’s telework program as a model in the federal government that’s good for morale

Yeah, I bet it’s good for morale. If I got (over)paid and didn’t have to do much work, I might feel happy as well.

Actually, that’s not true. For better or worse, I passionately care about the future of the country and the cause of human liberty. So I’d be doing exactly what I’m doing even if I had to do it as a hobby. I’m just lucky that I get to ply my trade at America’s most effective think tank.

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I’m not a huge fan of government bureaucrats.

But not because they’re bad people. Yes, there are repugnant hacks in the civil service like Lois Lerner, but most bureaucrats I’ve met are good people.

My objection is that they work for departments that shouldn’t exist (such as HUD, Education, Transportation, Agriculture, etc) and/or they are overcompensated relative to workers in the productive sector of the economy.

From an economic perspective, our nation would be more prosperous if this labor was freed up to generate wealth in the private sector.

But let’s not forget that we also have a giant shadow bureaucracy of people (sometimes referred to as “Beltway Bandits”) who get their income from government, but they’re not officially on the payroll because they work for consultants, contractors, grant recipients, and government-sponsored enterprises.

And this may be an even bigger problem. Iain Murray of the Competitive Enterprise Institute estimates that there are “five and a half ‘shadow’ government employees for every civil servant on the federal payroll.”

In an interview for Fox Business Network about the EPA-caused environmental disaster in Colorado, I took the opportunity to warn about the pernicious and self-serving role of these beltway bandits.

And I made similar points in this 2014 interview, which focused on how Washington is now the richest region in the country thanks to all the taxpayer money that’s being scooped up by this gilded class.

If you want a disgusting example of how taxpayers are victimized by consultants, contractors, and other beltway bandits, just recall the Obamacare websites that turned out to be complete disasters.

That led to some amusing cartoons about the failure of government-run healthcare, but it also should have resulted in outrage about the government giving fat payments for shoddy work.

And this highlights one of the chief differences between government and the private sector.

Since there’s no bottom-line pressure to be efficient in government, contractors, consultants, and other beltway bandits can stay in business in spite of poor performance. In the private sector, by contrast, both households and businesses will quickly sever relationships with people who don’t deliver good results.

Let’s cross the ocean and look at a story which nicely captures this dichotomy.

Here’s an excerpt from a column in the U.K.-based Telegraph, and it deals with an employee at a government-sponsored enterprise (GSE) who exposed fraud. In the private sector, such an employee would be rewarded. But at a GSE, which relies on subsidies and protection from competition, such an employee is treated like a leper.

An employee of France’s national rail operator SNCF has revealed being paid €5,000 (£3,550) per month to do absolutely “nothing” for 12 years, it emerged on Friday. …Charles Simon told French media that his employer, which runs France’s trains including the fast TGVs, took him off his day job in 2003 after he blew the whistle on a case of suspected fraud to the tune of €20 million. Since then he has received €5,000 per month net while staying at home with the status “available” for work.

Wow. If my math is right, that’s more than $66,000 per year for doing nothing. For 12 years!

Though at least Monsieur Simon is complaining about the situation, unlike the Indian bureaucrat who managed to get paid up until last year even though he stopped showing up for work back in 1990. Or the Italian government employee who only worked 15 days over a nine-year period.

P.S. Speaking of Beltway Bandits, that’s the name of my 55+ senior softball team and we just won the ISSA World Championship a couple of hours ago, prevailing 16-10 after falling behind 8-0.

And that was one week after we won the SSUSA Eastern National Championship.

And I also have to give a shout out to the Georgia Bulldogs of the Capital Alumni Network, which just won the championship of that 69-team league, becoming the first team in CAN history to be undefeated in the regular season and post-season tournament.

I’m disappointed I couldn’t be there for the celebration because of my other tournament. If I ever become a dictator, my first order will be that different softball tournaments can’t take place on the same weekend (and my second order will be to abolish my job and 90 percent of the rest of the government).

In any event, Go Dawgs! After winning the CAN tourney in 2012, this year’s dominating performance could signal the start of a dynasty.

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