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Posts Tagged ‘Government waste’

The Bureaucrat Hall of Fame recognizes government employees who go above and beyond the call of duty in terms of getting over-paid or being under-worked.

Or both.

Adding insult to injury, many recipients of this award are employed by bureaucracies that shouldn’t even exist.

Today we’re going to look at the Oakland police department, which is a part of the government that presumably should exist (though Camden, NJ, shows that maybe we shouldn’t make that assumption).

The Oakland PD is notorious for being over-compensated, but one cop stands out.

Eric Boehm of Reason has the sordid details.

When Oakland, California, police officers are needed at Golden State Warriors basketball games and other special events, Malcolm Miller is the officer in charge of making those assignments. Often, he assigns himself. As a result, Miller has become one of the highest paid officers in the department. He’s earned nearly $2.5 million over the past five years—most of it overtime pay—according to data collected by Transparent California, a watchdog group.

What a scam.

It’s highly likely that Mr. Miller is a basketball fan, so he’s figured out a great racket.

He basically gets a big pile of money for going to the games.

He and his colleagues are making out like bandits.

…he’s hardly the only officer to take advantage of poor oversight and a general lack of accountability. According to the audit, 217 officers worked roughly 520 hours of overtime last year, helping to cost the department more than $30 million in overtime pay—about twice as much as had been budgeted. Over the past four years, overtime expenditures have ranged from $28 million to $31 million. Proper documentation of overtime work was lacking in 83 percent of cases, the auditors found.

Though Officer Miller might not be the worst of the group.

One officer was paid for more than 2,600 hours of overtime—equal to 108 days of round-the-clock work—in just a single year.

So how do cops get away with this scam?

Simple, they make sure to negotiate contracts that have sweetheart provisions that they can exploit.

And why does Oakland agree to such contracts?

Well, as Michael Ramirez illustrated, bureaucrat unions give lots of money to state and local politicians, and those politicians then conspire with the unions to give them contracts with the sweetheart provisions.

Let’s close by looking at an example of this kind of scam.

Perhaps the most stunning part of the audit is the explanation of a department-wide policy that allows Oakland cops to accrue 1.5 hours of “comp time” for every hour of overtime worked. When an officer cashes in that comp time and isn’t working, other officers have to work overtime to fill the gap. That creates a cascade of additional overtime pay—10 hours of overtime creates 15 hours of comp time, which some other cop has to work, earning 22.5 hours of comp time (if they’re also working overtime), and so on.

Here’s the accompanying illustration.

How ridiculous. Extra money for overtime, combined with being able to work fewer hours in the future. Which then gives other cops an opening to rack up more overtime pay.

Everyone wins…except for taxpayers.

P.S. Some bureaucrats earn admission to the Bureaucrats Hall of Fame by misbehaving. Often in very strange ways.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This story presumably involves two common features of government contracting.

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

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

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

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

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When asked to pick the worst international bureaucracy, I generally respond as follows.

The International Monetary Fund (IMF) or Organization for Economic Cooperation and Development (OECD) should be at the top of the list. Both of those bureaucracies aggressively push statist policies designed to give governments more power over people. I have mixed feelings about which one deserves to be called the worst bureaucracy.

Next on my list are the United Nations (UN) and European Bank for Reconstruction and Development (EBRD). Many people are surprised the UN isn’t higher on the list, but I point out that the organization generally is very ineffective. Meanwhile, the EBRD is relatively unknown, but I have total disdain for its cronyist business model (basically a global version of the Export-Import Bank).

At the bottom of my list is the World Bank (WB). I don’t have knee-jerk hostility to the WB, in part because the bureaucrats historically have their hearts in the right place (reducing poverty) and even occasionally support the right policies (social security reform and regulatory relief).

Nonetheless, I was disappointed earlier this year to learn that the Trump Administration decided to give more money to the World Bank.

The Trump administration is backing a $13 billion increase in funding for the World Bank… The change…will allow the bank to increase lending to poor-country clients… The U.S. is the only country with veto power over any changes in bank structure, so funding increases cannot proceed without Washington’s support. …The shift to U.S. support for more funding at the Bank took some European governments by surprise, said Suma Chakrabarti, president of the European Bank for Reconstruction and Development, a London-based multilateral bank lending in Europe, the Middle East and North Africa. He said in an interview Thursday that the capital increase is “very good news,” since it would help efforts to reduce global poverty. …Mr. Mnuchin said he would work with Congress to secure approval for the U.S. contribution, a step that has in the past proved challenging.

Hopefully it will prove impossible rather than challenging to get approval for more funding (though I haven’t been following the issue, so maybe Republicans in Congress already have okayed an expansion).

Assuming the decision hasn’t yet been made, I have some evidence showing why the World Bank doesn’t deserve more funding.

And not merely because aid is not the route to prosperity. Consider the misguided advice that the World Bank is pushing on Romania.

The Romanian government should…consider switching the flat income tax to a progressive tax, said World Bank chief economist for Europe and Central Asia, Hans Timmer. …The World Bank representative…referred to the flat tax rate…, stating that they should think about whether this system is still appropriate. The World Bank’s advice would be to rethink the entire labor market taxation system in coordination with other countries in the region, and not just make small changes. ”We can not tell you what the solution is, but you need to analyze everything, including the single tax, and whether you’d be better off implementing a progressive tax system, meaning those who earn more pay more,” Timmer said.

This is horrible advice. The flat tax is very conducive to prosperity and Romania needs fast growth to help offset the damage caused by decades of communist enslavement.

Moreover, there are problems with corruption in Romania and the World Bank has admitted that tax complexity facilitates corruption.

Given Mr. Timmer’s misguided musings, I may need to get a new version of my cartoon about international bureaucracies. Especially since the World Bank once produced a study giving nations higher grades for having more oppressive tax systems.

P.S. In fairness, the WB has produced some good work on government spending, dependency, financial regulation, and free markets.

P.P.S. And I especially like the World Bank’s comparison of Chile and Venezuela.

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Given the routine corruption and reckless spending in Washington, I frequently get asked how I keep my sanity.

It’s possible, as some of my friends argue, that I’m not actually sane. That would explain why I try to put my finger in the dyke of big government as more and more new leaks keep developing. Only a crazy person would fight against big government when politicians and bureaucrats have a “public choice” incentive to do the wrong thing.

Moreover, if “victory” is restoring the kind of limited government envisioned by the Founding Fathers, then there’s a 99.99 percent chance all my efforts will be wasted.

But allow me to offer a reason for optimism. What if we decide that “victory” is simply hindering the growth of government so that the private sector has enough “breathing room” to continue making our lives richer and better?

That’s the basic message of Human Progress, Marian Tupy’s website showing how the world is constantly improving. And we see good long-run developments from Economic Freedom of the World.

In other words, we don’t need to achieve Libertarian Nirvana. We just need to throw sand in the gears of government.

And that’s why I don’t think my life is pointless. To be sure, I haven’t given up on my dream of replacing the odious internal revenue code with a flat tax, but if the only thing I achieve is to protect America from a value-added tax, I’ll nonetheless go to my grave feeling like I did something very valuable for my country.

But there’s something else that keeps me sane. I also enjoy laughing at government. I regularly write about “great moments” in government and point out that incompetence and stupidity is a regular feature of the federal government, of state governments, and of local governments.

And I also enjoy mocking the spectacular screw-ups and bizarre blunders that are a feature of foreign governments as well.

And that’s our topic for today. So let’s start with this story from India about a very unusual example of vote buying.

A south Indian state has become possibly the first in the world to offer publicly-funded breast implants, its health minister arguing, “Why should beauty treatment not be available to the poor?” The Tamil Nadu state health department on Wednesday launched the free service at a clinic in the capital Chennai. …The clinic had already been providing breast reconstruction surgery for cancer patients, but was now extending the service for people who wished to alter the size of their breasts for other health or cosmetic reasons. The head of plastic surgery at the clinic, Dr V Ramadevi, said some of her patients…sought to augment or shrink their breasts for a boost in confidence. “There is a psychological benefit. Many girls who have larger breasts don’t like to go out. There is no reason this surgery should be restricted from the poor.” The procedure would also be available to men, she said. …Tamil Nadu’s government is known for its largesse, particularly under former chief minister Jayalalithaa, who pioneered free food canteens and doled out wedding jewellery and venues to the poor.

I’ve previously reported on crazy examples of government policy in India, so I suppose this story shouldn’t surprise me.

And since taxpayer-financed cosmetic surgery exists in the United Kingdom and the United States, Indian taxpayers can take solace that they’re not alone.

Now let’s go to Belgium, where there’s apparently a problem with rogue royalty.

Prince Laurent of Belgium has had his monthly allowance docked for a year, after a vote by the country’s federal parliament. The sanction was imposed after the prince attended a Chinese embassy reception last year without government permission, in full naval uniform. Lawmakers voted for a 15% cut to his €307,000 (£270,000; $378,000) annual allowance. …Prince Laurent, who is the younger brother of King Philippe, wrote a lengthy emotional letter to parliament before the vote on his endowment, arguing that, as a royal, he is unable to work for a living. He described the vote as “the trial of my life” and said it would “likely cause me serious prejudice” if MPs went against him. …The prince, 54, said the royal family had obstructed his attempts to be financially independent. …Lawmakers ultimately rejected his claim that no citizen of their country had been so exploited, voting to cut his stipend by 93 to 23 votes. …He had previously been criticised for attending meetings in Libya when the late Muammar Gaddafi was still in power, and making an unsanctioned 2011 trip to the Democratic Republic of Congo, a former Belgian colony.

I suppose this is a feel-good story in that politicians actually voted to cut spending.

Though we should never forget that this is the country where the public sector consumes half of economic output but officials actually complained that it’s hard to fight terrorism because of “the small size of the Belgian government.”

Now it’s time for ar stop in Malaysia, where corrupt politicians spent the country into debt and now they want taxpayers to voluntarily cough up extra money.

When Malaysian Prime Minister Mahathir Mohamad unexpectedly won his bid for office in May, he pledged to…get the country’s $250 billion worth of debt under control. And this week, he announced the government had found a way to at least get started: crowdfunding. Within 24 hours, the “Malaysia Hope Fund” raised almost $2 million, the BBC reported. “The rakyat (people) voluntarily want to share their earnings with the government to help ease the burden,” the finance ministry said in a statement, announcing that it would be accepting donations to a special fund set up to help relieve the country’s debt. …The crowdfunding idea started with a 27-year-old named Nik Shazarina Bakti, who recently launched a private crowdfunding initiative to help relieve Malaysia’s debt.  She raised around $3,500 before the government stepped in. In a sense, the effort is a version of what she said Malaysians did during their struggle for independence from Britain, when they donated jewelry, money and valuables. It’s also similar to what South Korea did as it attempted to pull itself out of economic crisis in the late 1990s, and regular citizens lined up to donate their most prized possessions to the government, including wedding rings and trophies.

Hmmm…, $2 million raised to pay off $250 billion of debt. Methinks they won’t meet their goal.

Though this story reminds me that politicians like Elizabeth Warren want the rest of us to pay more tax, yet she conveniently doesn’t participate in her state’s version of voluntary crowdfunding.

Here’s an amazing story from Romania.

He’s a dead man walking and the court ruling is final. A Romanian court has rejected a man’s claim that he is still very much alive, after he was officially registered as deceased, the Associated Press reports. Constantin Reliu, 63, lost his case in Vasului because he appealed too late on the ruling, a court spokeswoman said Friday. The story goes that Reliu had traveled to Turkey in 1992 for work and lost contact with his family. Since his wife had not heard from her husband in years, she acquired a death certificate for him in 2016, the AP reports. However, since Reliu was discovered by Turkish authorities this year with expired papers, he was deported back to Romania. That’s when he discovered he had been declared dead.

Wow. I thought American courts generated some outlandish decisions, but this belies belief.

Last but not least, here’s a report from Spain that should leave you skeptical about the efficacy of additional NATO spending.

An attempt to deploy a new submarine for Spain’s navy has run aground again, after it emerged it cannot fit in its dock, Spanish media report. The S-80 boat was redesigned at great expense after an earlier mistake meant it had problems floating, and it was lengthened to correct the issue. Spanish newspaper El País now reports that after the changes, the docks at Cartagena can no longer fit the vessel. The cost for each has almost doubled, the newspaper said. …The original problem with the submarine dates back to 2013, when it was discovered that it was about 100 tons heavier than it needed to be. That caused a problem for its buoyancy – so it could submerge, but might not come back up again. A former Spanish official told the Associated Press at the time that someone had put a decimal point in the wrong place, and “nobody paid attention to review the calculations”. …the base at Cartagena will have to be dredged and reshaped to accommodate the now-floating longer vessel, the El País report said. Spain’s Defence Minister Margarita Robles, speaking on Spanish radio, admitted that “there have been deficiencies in the project”.

Call me crazy, but “deficiencies” doesn’t really describe what happened. Almost makes the Pentagon look frugal. Almost makes the German intelligence service look competent.

For previous examples of great moments in foreign government, click here, here, here, here, here, here, here, here, here, and here.

P.S. In other words, my “government in cartoons” collection applies equally no matter where you travel.

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Time for a confession.

I routinely mock bureaucrats, but I don’t really think they are any worse than other people. Indeed, I have plenty of friends and acquaintances who work for various levels of government and they are fundamentally decent people.

The real problem is that bureaucracies create bad incentives. So even people who are generally good will be tempted to exploit rules that reward bad behavior.

And some of these folks, operating in systems with bad incentives, will morph into bad people. Heck, some of them are so awful that I elect them to the Bureaucrat Hall of Fame.

But it’s also important to recognize other bureaucrats – as well as the perverse rules that encourage their bad actions.

Let’s start with a cop in New Jersey who went above and beyond the call of duty, at least if the call of duty involves ripping off taxpayers.

…former Police Chief Philip Zacche…could spend the first decade of his retirement in federal prison after he admitted to stealing $31,713 from an agency that serves the city’s neediest families. Federal prosecutors said Friday that Zacche filled out phony time sheets to get paid for security work that he never performed for the Jersey City Housing Authority. …As a member of the department’s brass, Zacche pulled a six-figure salary before overtime. He earned even more by working an off-duty part-time gig as a security officer for the Authority’s Marion Gardens housing development. When he retired in June, city taxpayers had to cut Zacche a check for $512,620 to compensate him for 450 unused comp and vacation days. The 61-year-old Manalapan resident is now set to collect a pension of at least $11,946 every month for the rest of his life.

That’s a pension of more than $140,000 per year. And he gets it well before age 65. No wonder New Jersey is a fiscal mess.

Let’s also highlight a senior federal bureaucrat who specialized in exploiting immigrants to steal money.

A chief counsel at US Immigration and Customs Enforcement (ICE) has admitted stealing immigrants’ identities to defraud banks. Raphael Sanchez, 44, forged identity documents on his government computer to open bank accounts and credit cards in the names of seven immigrants. He racked up more than $190,000 (£135,000) in personal loans, transferred funds and card-spending during the four-year scam. …He claimed three were dependent relatives on his tax returns for 2014 to 2016. …He resigned from his role at the ICE’s Office of the Principal Legal Advisor after his crimes came to light.

I’m almost impressed by this guy’s depravity. Not only did he steal identities, but he even listed some of the victims as dependents on his tax return. That’s real chutzpah!

And notice that theft and fraud apparently are not enough to get a bureaucrat fired. Instead, he resigned.

And since we’re on the topic of bureaucrats doing bad things and not getting fired, we may as well note that the guy who sent the false alert in Hawaii is still getting checks from the taxpayers he terrified.

The worker who sent a false missile alert to Hawaiian residents on Saturday has reportedly been reassigned. The civil defence employee has been moved to another role, but not fired, according to multiplemedia reports. In a press conference on Saturday, the head of Hawaii’s Emergency Management Agency, Vern Miyagi, said the worker “feels terrible.” …The Post also confirmed that there are no plans to fire the employee.

Here’s a fourth example, dealing with a former Obama appointee who was unmasked for screwing taxpayers.

Vikrum Aiyer liked to commute to his government job by taxi. On at least 130 occasions over two years — the majority during a four-month stretch in 2016 — the then-chief of staff for the U.S. Patent and Trademark Office called a taxi to pick him up near his home in the District. He was chauffeured across the Potomac River 10 miles or so to the agency’s headquarters in downtown Alexandria. And then…Aiyer billed the government for each ride. To escape notice, Aiyer impersonated current and former high-level agency officials, writing their names on cab receipts and vouchers he submitted to the taxi company, which then billed the government, investigators found. …Aiyer…released a statement saying he had a “misunderstanding of agency taxi rules.”

Hmmm…, I think I’ll go to the grocery store later today and slip a couple of steaks into my jacket. If I get caught leaving the store, I’ll say I had a “misunderstanding of store rules.”

The good news, at least if we’re grading on a curve, is that it only took about two years for the government to realize what was happening.

Aiyer’s unauthorized rides apparently went unnoticed for at least two years by budget officials who reviewed the invoices from Alexandria Yellow Cab, which has a contract to provide authorized taxi services for agency officials. The patent office paid the taxi company more than $4,000 for Aiyer’s rides, the report says. …For most of the cab rides, Aiyer was picked up on a street corner a tenth of a mile from his home, according to the report. But he wrote on the invoice that he was leaving from Commerce Department headquarters in downtown Washington. …investigators found…that he “used the Agency’s Cab Company account to facilitate his weekend social activity… Aiyer also racked up $15,000 in expenses on his government-issued credit card, charging for food and drink at local bars, clubs, coffee shops, restaurants, grocery stores, dry cleaners and at least one liquor store, the report said. …The report says he also misstated his educational credentials on résumés he submitted to the Obama administration, claiming to have a postgraduate degree that he did not receive.

By the way, the article mentioned that Aiyer was a technology adviser for the White House. Did he advise on how to lie on your resume and how to get taxpayers to finance one’s social life?

A common problem in most of these stories is that politicians and bureaucrats conspire together to create rules that enable bad behavior.

Government employee unions, for instance, give lots of money to politicians and then sit down with those lawmakers to “negotiate” pay and benefit packages.

Needless to say, the interests of taxpayers don’t get represented. And that’s why many state and local governments are careening toward bankruptcy.

What’s especially discouraging is how these deals often include loopholes that are designed to be exploited.

For instance, the Los Angeles Times has a very depressing exposé showing how senior bureaucrats in the police and fire departments benefited from a scam allowing them to double dip. But not just double dip. They get extra compensation and oftentimes then don’t do any work.

When Capt. Tia Morris turned 50, after about three decades in the Los Angeles Police Department, she became eligible to retire with nearly 90% of her salary. But like many cops and firefighters in her position, the decision to keep working was a financial no-brainer, thanks to a program that allowed her to nearly double her pay by keeping her salary while also collecting her pension. A month after Morris entered the program, her husband, a detective, joined too. Their combined income for four years in the Deferred Retirement Option Plan was just shy of $2 million, city payroll records show. But the city didn’t benefit much from the Morrises’ experience: They both filed claims for carpal tunnel syndrome and other cumulative ailments about halfway through the program. She spent nearly two years on disability and sick leave; he missed more than two years… The couple spent at least some of their paid time off recovering at their condo in Cabo San Lucas.

Yes, I’m sure they were “recovering” at their luxurious place on the beach.

Just like the other bureaucrats who exploited the system.

The Morrises are far from alone. In fact, they’re among hundreds of Los Angeles police and firefighters who have turned the DROP program — which has doled out more than $1.6 billion in extra pension payments since its inception in 2002 — into an extended leave at nearly twice the pay… Former Police Capt. Daryl Russell, who collected $1.5 million over five years in the program, missed nearly three of those years because of pain from a bad knee, carpal tunnel and multiple injuries he claimed he suffered after falling out of an office chair. …Former firefighter Thomas Futterer, an avid runner who lives in Long Beach, hurt a knee “misstepping off the fire truck,” three weeks after entering DROP, according to city records. The injury kept him off the job for almost a full year.Less than two months after the knee injury, a Tom Futterer from Long Beach crossed the finish line of a half-marathon in Portland, Ore.

Yes, you read correctly. His knee supposedly was so damaged that he couldn’t work, but he nonetheless runs long-distance races.

I’m beginning to think that firefighters in big cities are the most cossetted of all bureaucrats. I now understand the hostility in this video.

Here’s some background on the DROP scam.

The idea of allowing retirement-age public employees to collect their pensions while working and receiving paychecks originated more than three decades ago in tiny East Baton Rouge, La. …the goal was the opposite: to discourage older employees from staying so long that they limited upward mobility for younger workers. And it had a two-year time limit. Since then, versions of the program have been adopted by dozens of states, counties and cities across the country. The details vary — some have short terms to encourage early retirement, others have long terms to retain experience — but the central appeal for employees is constant: two large checks instead of one. …former Mayor Richard Riordan…said: “Oh, yeah, that was a mistake…it’s total fraud.” …in recent years, a growing number of jurisdictions have abandoned or drastically scaled back DROP programs because the math doesn’t work. …Instead of saving money, or remaining “cost-neutral,” the programs lead to ballooning pension costs and accusations that employees are simply double-dipping.

Needless to say, the taxpayers who finance all this aren’t treated nearly as well as government insiders.

When most Los Angeles taxpayers reach the standard retirement age, 65, they face a stark choice: keep working and collecting their paychecks or quit and start collecting Social Security, which replaces only a small fraction of annual wages for most people.When city firefighters or police officers reach their retirement age, 50, the choices are far better. They can keep working for a paycheck, they can retire with up to 90% of their salary in pension and city-subsidized health insurance for life, or they can enter DROP. For many, the choice is easy. …they keep working and collecting their paychecks for up to five years while their pension checks are deposited into a special account. …the city guarantees 5% interest on the money in the account. The city also adds annual cost-of-living raises to the pension checks to make sure they keep pace with inflation.

Disgusting.

Let’s close by speculating whether Trump will do anything to fix this mess, at least the part that occurs on the federal level.

Some pro-Trump readers sent me this story from the Washington Post and suggested it shows that the President is making progress.

…a year into his takeover of Washington, President Trump has made a significant down payment on his campaign pledge to shrink the federal bureaucracy… By the end of September, all Cabinet departments except Homeland Security, Veterans Affairs and Interior had fewer permanent staff than when Trump took office in January — with most shedding many hundreds of employees, according to an analysis of federal personnel data… The falloff has been driven by an exodus of civil servants, a diminished corps of political appointees and an effective hiring freeze. …Federal workers fret that their jobs could be zeroed out amid buyouts and early retirement offers that already have prompted hundreds of their colleagues to leave, according to interviews with three dozen employees across the government. Many chafed as supervisors laid down new rules they said are aimed at holding poor performers and problem workers to account. …“Morale has never been lower,” said Tony Reardon, president of the National Treasury Employees Union, which represents 150,000 federal workers at more than 30 agencies. “Government is making itself a lot less attractive as an employer.”……Agencies have told employees that they should no longer count on getting glowing reviews in their performance appraisals, according to staff in multiple offices, as has been the case for years. Housing and Urban Development managers, for example, are being evaluated for the first time on how effectively they address poor performers.

If I was planning to die in the next month, I would probably agree with readers that Trump made progress in this area.

But as I wrote last year, the only way to successfully shrink bureaucracy in the long run is to shrink government.

Yet Trump just capitulated to a budget deal that increases spending.

I’m willing to praise this President when he does good things, but his weak record on spending almost surely is going to translate into a bigger bureaucracy over time. Though I hope I’m wrong.

Here are two final additional passages from the story that deserve some attention. Starting with an honest bureaucrat.

…some civil servants said they welcome the focus on rooting out waste and holding federal workers to high standards. “Oftentimes we run on autopilot and continue to fund programs that don’t produce the results that were intended,” said Stephanie Valentine, a program analyst at the Education Department. “You can’t keep blindly spending because that’s what we’ve always done.”

And since I’ve previously contrasted Bill Clinton’s good record and Obama’s bad record, this passage is added confirmation of my findings.

Trump already has begun to reverse the growth of the Obama era, when the government added a total of 188,000 permanent employees, according to Office of Personnel Management data. …The last time federal employment dropped during a president’s first year, President Bill Clinton was in the White House.

It’s also worth noting that the bureaucracy didn’t contract during the big-government Bush years.

I’ll conclude by circling back to my original point. Most bureaucrats are no better or no worse than the rest of us. Given the perverse “public choice” incentives inherent in government, however, the good bureaucrats often are lured into bad behavior and the bad bureaucrats frequently become scam artists and crooks.

P.S. If my conclusion was too grim and pessimistic, you can cheer yourself up with another example of bureaucrat humor.

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States such as Illinois, California, New York, Connecticut, and New Jersey have very serious structural problems because of high tax burdens and unsustainable spending levels (often associated with excessive pay and benefits for bureaucrats).

I frequently write about those big issues, but I also like to periodically share examples of other bone-headed policies at the state level. These are not the types of policies that threaten bankruptcy, but they illustrate why it’s not a good idea to give power to politicians and bureaucrats.

Here are some new examples.

We have a column in Forbes about the dangerous plague of unlicensed and unregulated (gasp!) cakes in New Jersey.

At first, she sold her baked goods to support her son’s school fundraisers. …Soon Heather started receiving requests from family, friends, sports fundraisers, and even a wedding venue. …With this business, Heather hoped she could pay for her son’s college education and one day open her own brick-and-mortar cake pop shop. Unfortunately, her dreams were dashed thanks to a law that exists only in New Jersey. Unlike 49 other states, selling baked goods made at home is illegal in the Garden State. Baking and selling just one cake, cookie or muffin risks fines as high as $1,000. When Heather learned she had to shut down her cake pop sideline, the news was “crushing,” she said.

As is so often the case when governments are suppressing liberty, “health and safety” is the excuse.

New Jersey’s main justification for the ban is to protect the public’s health and safety—a claim that’s belied by the fact that nearly every other state has a “cottage food” law on the books, which legalizes the sale of homemade cakes, cookies, jams and other food deemed “not potentially hazardous.” …In order to sell cake pops, cookies or other shelf-stable treats in New Jersey, Heather must either build a licensed “retail food establishment” separate from her home kitchen or she can rent a commercial kitchen, which can easily cost $35 an hour.

Fortunately, the Institute for Justice is fighting to overturn the law.

Heather and two other home bakers joined with the Institute for Justice and filed a lawsuit against the state earlier this month. …A similar IJ lawsuit has already defeated a pastry prohibition in Wisconsin. Over the summer, a Wisconsin judge struck down the state’s ban on selling home-baked goods because there was “no real or substantial connection” between the law and public safety. …In his ruling, Lafayette Circuit Court Judge Duane Jorgenson noted that the ban protected established businesses from greater competition, which is why groups like the Wisconsin Bakers Association heavily backed the law. …Those rulings followed a 2015 IJ court victory on behalf of home bakers in Minnesota, which galvanized the state to expand its cottage food laws. Now the state boasts over 3,000 cottage food producers.

Notice, by the way, that protecting an established interest group was the real purpose of the law. In other words, the law was basically similar to schemes for occupational licensing.

This next item is so strange that I wonder whether it is somehow fake. But I also suspect it’s too bizarre to be fake. In any event, I wonder about the reason for this government-mandated notice?!? And if you find a (gasp!) vending machine without the notice, what purpose is served by calling the number? And do the bureaucrats expect people to memorize the number in case they stumble upon a rogue vending machine?!?

Oh, and how long before some people figure out how to remove the notice and then call the government in hopes of getting the “cash reward”?

If anybody knows the answer to any of these questions, feel free to share your thoughts. In the meantime, I’ll simply assume that the notice presumably isn’t as pointless and stupid at this pedestrian sign and definitely not as creepy and malevolent as this “public service” notice.

Next, we have a story from ABC News about taxpayer-funded generosity to pets in Michigan.

A dog in western Michigan has been approved for unemployment benefits — and he’d be bringing in a cool $360 a week. Michael Haddock, of Saugatuck, Michigan, says he received a letter on Saturday from the State of Michigan Unemployment Insurance Agency (UIA) addressed to Michael Ryder, according to Grand Rapids ABC affiliate WZZM. Michael is his name. Ryder is his dog’s name. …Haddock says the employer listed on the letter was a restaurant chain in Metro Detroit. After receiving the letter, Haddock contacted the restaurant chain and the state unemployment office. …The Michigan UIA announced Tuesday it was creating a special investigative unit to handle the recent increase in fake unemployment claims. The agency attributes many of the claims to recent data breaches. Haddock isn’t sure how scammers got his dog’s name.

I’m clearly behind the times. I have some cats that need to sign up for handouts!

On a more serious note, I confess that I’m not aware of the degree to which unemployment benefits are fraudulent. Hopefully it’s not as bad as the EITC, though I’m confident that problem is bigger than politicians and bureaucrats would ever admit.

And why would folks in the government even care? After all, it’s our money they’re squandering rather than their own. And Milton Friedman educated us on what that means.

From the perspective of good public policy, though, the real problem with such benefits (as personalized here and here) is that they lure people into extended periods of joblessness.

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In 2011, I wrote about how taxpayers were getting pillaged to finance a new metro line in Fairfax County, Virginia.

But you won’t be surprised to learn that California taxpayers are getting screwed even worse.

I’ve since learned, however, that the real experts at wasting money are in the Big Apple. Earlier this year, as part of a column on why the federal government shouldn’t be involved with infrastructure, I shared some depressing details about a far more expensive subway project in New York City.

And now the New York Times has a must-read report about how another big infrastructure project in NYC is an even more absurd boondoggle. The story starts with an anecdote

The budget showed that 900 workers were being paid to dig caverns for the platforms as part of a 3.5-mile tunnel connecting the historic station to the Long Island Rail Road. But the accountant could only identify about 700 jobs that needed to be done, according to three project supervisors. Officials could not find any reason for the other 200 people to be there. …“All we knew is they were each being paid about $1,000 every day.”

Nice “work” if you can get it, as the old saying goes. A pretend job that pays $1,000 per day.

That makes the gravy train for federal bureaucrats seem miserly by comparison.

Unfortunately, that anecdote is just the tip of the iceberg. The entire project is a monument to how money gets wasted in New York City.

The estimated cost of the Long Island Rail Road project, known as “East Side Access,” has ballooned to $12 billion, or nearly $3.5 billion for each new mile of track — seven times the average elsewhere in the world. …a host of factors have contributed to the transit authority’s exorbitant capital costs. …public officials have stood by as a small group of politically connected labor unions, construction companies and consulting firms have amassed large profits.

In other words, the story’s headline is no exaggeration.

The special deals for unions are jaw-dropping.

Trade unions, which have closely aligned themselves with Gov. Andrew M. Cuomo and other politicians, have secured deals requiring underground construction work to be staffed by as many as four times more laborers than elsewhere in the world, documents show. …Worker wages and labor conditions are determined through negotiations between the unions and the companies, none of whom have any incentive to control costs. The transit authority has made no attempt to intervene to contain the spending.

The featherbedding belies belief.

Mr. Roach, a California-based tunneling contractor, was…stunned by how many people were operating the machine churning through soil to create the tunnel. “I actually started counting because I was so surprised, and I counted 25 or 26 people,” he said. “That’s three times what I’m used to.” …documents reveal a dizzying maze of jobs, many of which do not exist on projects elsewhere. There are “nippers” to watch material being moved around and “hog house tenders” to supervise the break room. Each crane must have an “oiler,” a relic of a time when they needed frequent lubrication. Standby electricians and plumbers are to be on hand at all times, as is at least one “master mechanic.” Generators and elevators must have their own operators, even though they are automatic. …In New York, “underground construction employs approximately four times the number of personnel as in similar jobs in Asia, Australia, or Europe,” according to an internal report by Arup, a consulting firm that worked on…many similar projects around the world.

The international cost comparisons are the most persuasive part of the story.

Taxpayers in New York City are paying far more to get far less.

…transit construction is booming around the world. At least 150 projects have been initiated since 1990, according to a recent study by Yale University researcher David Schleicher. The approximate average cost of the projects — both in the U.S. and abroad — has been less than $500 million per track mile, the study concluded. “There was one glaring exception,” Mr. Schleicher said. “New York.”

If you want a partial explanation of why this staggering level of graft and corruption is allowed, this sentence is a good place to start.

The unions working on M.T.A. projects have donated more than $1 million combined to Mr. Cuomo during his administration, records show.

And I’m sure huge amounts of money have also been diverted to city politicians as well.

It’s almost as if the whole thing is a racket, with politicians and union bosses conspiring to rip off taxpayers.

“Almost”? I must be getting soft in my old age. Let me rephrase that sentence: It is a racket to rip off taxpayers.

But let’s be fair. I don’t want to imply that it’s all the fault of the unions. The contractors also buy off the politicians.

…the…main engineering firm: WSP USA, …has donated hundreds of thousands to politicians in recent years, and has hired so many transit officials that some in the system refer to it as “the M.T.A. retirement home.”

Speaking of the M.T.A., the bureaucrats also get a sweet deal, with the rest of us picking up the tab.

More than a dozen M.T.A. workers were fined for accepting gifts from contractors during that time, records show. …A Times analysis of the 25 M.T.A. agency presidents who have left over the past two decades found that at least 18 of them became consultants or went to work for authority contractors, including many who have worked on expansion projects. “Is it rigged? Yes,” said Charles G. Moerdler, who has served on the M.T.A. board since 2010.

There’s a lot more to read in the article, including details on how a big French infrastructure project is being built at far lower cost.

It’s basically a perfect example of what Milton Friedman said about what happens when you get to spend other people’s money.

For instance, the story also has grim data about cost overruns, which are a routine feature of government infrastructure scams, both in America and other nations.

But one thing that isn’t in the report is the degree to which Washington is subsidizing this wretched boondoggle.

This is the part that irks me. I wouldn’t get too upset if New York City politicians were conspiring with interest groups to rip off New York City taxpayers. Heck, I wouldn’t even care if they were ripping off taxpayers from elsewhere in the state.

But the fact that I’m also paying for this pork-barrel project is very distressing. And it helps to explain why I want to shut down the Department of Transportation in Washington. That’s the real moral of this story.

P.S. Trump’s infrastructure plan will be unveiled next year. I’m not overflowing with optimism, but hope springs eternal that maybe he’ll listen to my advice.

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