Posts Tagged ‘Waste’

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hey, nice work if you can get it.

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Since I’m an advocate of smaller government, you might imagine I’m perpetually depressed. After all, I work in Washington where I’m vastly outnumbered by people who specialize in looting and mooching. At times, I feel like a missionary in a house of ill repute.

But I always look for the silver lining when there’s a dark cloud overhead. So while it’s true that government squanders our money and violates our rights, at least we sometimes get some semi-amusing stories about sheer incompetence and staggering stupidity.

Like Detroit spending $32 to issue $30 parking tickets.

The State Department buying friends.

Or Georgia’s drug warriors raiding a house because of okra plants.

FEMA house guidelines that make houses less safe in hurricanes.

Federal rules that prevent school bake sales.

Bureaucrats defecating in hallways.

Yes, I realize I also should be outraged about these examples. But I can’t help being amused as well.

So let’s add to our collection of bizarre, foolish, and wasteful behavior by government.

Here are some passages from a Washington Post exposé on mismanagement and waste at the federal department that is infamous for secret waiting lists that resulted in denied health care (and in some cases needless deaths) for America’s veterans.

The Department of Veterans Affairs has been spending at least $6 billion a year in violation of federal contracting rules to pay for medical care and supplies, wasting taxpayer money and putting veterans at risk, according to an internal memo written by the agency’s senior official for procurement. In a 35-page document addressed to VA Secretary Robert McDonald, the official accuses other agency leaders of “gross mismanagement” and making a “mockery” of federal acquisition laws that require competitive bidding and proper contracts. Jan R. Frye, deputy assistant secretary for acquisition and logistics, describes a culture of “lawlessness and chaos” at the Veterans Health Administration.

I confess that it’s hard to find anything amusing about this story, but I’m worried that I might go crazy if I simply focus on how a bureaucracy gets more and more money every year, yet also manages to waste money with no negative consequences.

Or maybe I just enjoy the fact that I have a new reason to mock a wasteful government department (sorry to be redundant).

Here’s an example of spending that is so silly that it’s okay for all of us to laugh. Enjoy this blurb on how tax dollars are being wasted by the foreign aid bureaucracy.

American taxpayers might come down with a case of the blues when they hear about how the State Department is spending their tax dollars. According to ForeignAssistance.gov, India has requested $88,439,000 in U.S. foreign aid for the year 2015, but the State Department plans to spend additional funds on diplomacy: music diplomacy. The U.S. Mission to India is offering a $100,000 grant opportunity titled “Strengthening US-India Relations Through Jazz.” Eligible applicants include public and private universities as well as non-profit organizations. …Another grant available to universities and non-profit groups is for a “Visual Exhibit on Indian Faith and Traditions in America.” For $75,000, U.S. taxpayers will fund a “photographic exhibit that showcases both the ways that Indian-Americans practice their faith traditions in the United States, and the ways that Indian faith traditions have been adopted by American communities.” According to the offering, “The images will capture the diversity of the Indian-American community, so that a broad range of religious traditions are depicted.

These numbers are small compared to, say, the malfeasance and waste at the Department of Veterans Affairs. But that doesn’t mean we shouldn’t get upset in addition to being amused.

Think about it from this perspective. The amounts being wasted in this example are equal to the entire federal tax burden for several American families.

Do any of us think it’s okay to confiscate so much of their income and then have it squandered so pointlessly and irresponsibly?

Besides, the foreign aid bureaucracy is also capable of wasting huge amounts of money.

But remember that the federal government doesn’t have a monopoly on foolish and stupid behavior.

Here’s another example of inane government behavior. And you won’t be surprised that it took place in California because, as Reason reports, it involved a raid against an establishment serving probiotic tea.

Last Friday, an undercover officer from the state’s Alcohol Beverage Control (ABC) “infiltrated the temple,” Vice reports, “clearing the way for a 9 PM incursion by five officers.” What manner of crazy bootlegged hooch were the agents there to confiscate? Kombucha. Blueberry kombucha. For the uninitiated, kombucha is a type of carbonated, probiotic tea, popular among hipsters and health foodies. It’s made by mixing regular tea, sugar, and a “symbiotic culture of bacteria and yeast” known as the “mother” and letting the whole business ferment for a few days. The end result is a somewhat vinegar-like beverage that’s packed with good bacteria (à la yogurt) and ever-so-slightly alcoholic….But because the tea contains slightly above 0.5 percent alcohol, it requires a special license to sell say ABC agents, who cited a Full Circle rep for misdemeanor selling alcohol without a license.

Reminds me of the story about the federal milk police at the FDA. Or the federal bagpipe police at our borders.

Don’t these bureaucrats have anything better to do with their time (and our money)?!?

P.S. How could I forget all the examples of insane anti-gun political correctness in government schools?

P.P.S. Or the examples of unconstrained stupidity at the TSA?

P.P.P.S. And the odd collection of “human rights” that governments have created.

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

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

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

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

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

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

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

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

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

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

Hey, nice “work” if you can get it.

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

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

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

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

Reason has the wonderful details.

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

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

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

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

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As shown by this graphic, why are so many people in Maine taking advantage of the food stamp program? As shown by this map, why does Oregon have such a high level of food stamp dependency?

These are just rhetorical questions since I don’t have the answers. But if we can come up with good answers, that could lead to better public policy.

After all, if we want a self-reliant citizenry, it would be better if people were more like those in Nevada and less like the folks in Vermont, at least based on the infamous Moocher Index.

But one thing we can say with certainty is that the food stamp program has morphed into a very expensive form of dependency.

Jason Riley of the Wall Street Journal opines on the importance of reforming this costly entitlement.

Officially known as the Supplemental Nutrition Assistance Program, or SNAP, the food-stamp program has become the country’s fastest-growing means-tested social-welfare program. …Between 2000 and 2013, SNAP caseloads grew to 47.6 million from 17.2 million, and spending grew to $80 billion from $20.6 billion… SNAP participation fell slightly last year, to 46.5 million individuals, as the economy improved, but that still leaves a population the size of Spain’s living in the U.S. on food stamps. …The unprecedented jump in food-stamp use over the past six years has mostly been driven by manufactured demand. The Obama administration has attempted to turn SNAP into a middle-class entitlement by easing eligibility rules and recruiting new food-stamp recipients. …Democrats tend to consider greater government dependence an achievement and use handouts to increase voter support. The president considers European-style welfare states a model for America.

Making America more like Greece, however, is not good news for taxpayers.

But the program also has negative effects on recipients. Contrary to the left’s narrative, we don’t have millions of starving people in America.

…it now operates more like an open-ended income-supplement program that discourages work. Some 56% of SNAP users are in the program for longer than five years, which suggests that the assistance is being used by most recipients as a permanent source of income, not as a temporary safety net. …“Today, instead of hunger, the central nutritional problem facing the poor, indeed all Americans, is not too little food but rather too much—or at least too many calories,” Douglas Besharov, who teaches courses on poverty alleviation at the University of Maryland, told the House Agriculture Committee last month. “Despite this massive increase in overweight and obesity among the poor, federal feeding programs still operate under their nearly half-century-old objective of increasing food consumption.

So why don’t we try to help both taxpayers and low-income Americans by reforming the program, specifically by “block-granting” it to the states?

Uncle Sam picks up almost all of the bill. That means states have little incentive to control costs. Republicans argue that shifting to block grants would not only save money but also encourage states to increase the labor-participation rate of low-income populations. A state that has only so much money to work with is more likely to promote self-sufficiency in the form of employment, job-search and job-training requirements for able-bodied adults on the dole.

Decentralization, Riley explains, worked very well in the 1990s with welfare reform.

…1996 reforms…imposed more stringent time limits and work requirements on welfare recipients enrolled in programs like Temporary Assistance for Needy Families, or TANF. Welfare rolls subsequently plunged. By 2004, caseloads had fallen by 60% overall and by at least 30% in nearly every state. Child poverty, black child poverty and child hunger also decreased, while employment among single mothers rose. This was a welcome outcome for taxpayers, poor people and everyone else—except those politicians with a vested interest in putting government dependence ahead of self-sufficiency to get elected and re-elected.

So kudos to Republicans on Capitol Hill for proposing to put the states in charge of food stamps.

Just like they also deserve applause for working to block-grant the Medicaid program.

This is something that should happen to all mean-tested programs. Once they’re all back at the state level, we’ll get innovation, experimentation, and diversity, all of which will help teach policy makers which approaches are genuinely in the best interests of both taxpayers and poor people (at least the ones seeking to escape dependency).

Though I can’t resist adding one caveat. The ultimate goal should be to phase out the block grants so that states are responsible for both raising and spending the money.

Let’s close with a few real-world horror stories of what we’re getting in exchange for the tens of billions of dollars that are being spent each year for food stamps.

With stories like this, I’m surprised my head didn’t explode during this debate I did on Larry Kudlow’s show.

P.S. Shifting to another example of government waste, let’s look at the latest example of overspending and mismanagement by the Department of Veterans Affairs.

Nothing, of course, can compare with the horrible outrage of bureaucrats awarding themselves bonuses after putting veterans on secret waiting lists and denying them care.

But having taxpayers pay nearly $300,000 just so a bureaucrat can move from one highly paid job in DC to another highly paid job in Philadelphia should get every American upset. Here are some of the sordid details from a local news report.

Rep. Jeff Miller (R., Fla.), who chairs the House Veterans Affairs Committee, has also raised questions about the salary and “relocation payments” to the new director of the Philadelphia office, Diana Rubens. Rubens, who was a senior executive in the D.C. office when she was tapped in June to take over the troubled Philadelphia branch, received more than $288,000 in relocation expenses. “The government shouldn’t be in the business of doling out hundreds of thousands in cash to extremely well-compensated executives just to move less than three hours down the road,” Miller said. …Under federal regulations, an agency can pay a variety of costs associated with reassigning an employee, including moving, closing costs, and a per-diem allowance for meals and temporary lodging for the employee’s household.

I’m baffled at how somebody could run up such a big bill. Did she use the space shuttle as a moving van?

Did she have to stay six months at a 5-star resort while waiting for her new house to be ready?

Does a per-diem allowance allow three meals a day at the most expensive restaurant in town?

This is either a case of fraud, which is outrageous, or it’s legal, which means it’s an outrageous example of government run amok.

Regardless, it underscores what I wrote back in 2011.

I will never relent in my opposition to tax increases so long as the crowd in Washington is spending money on things that are not appropriate functions of the federal government. …I will also be dogmatic in my fight against higher taxes so long as there is massive waste, fraud, and abuse in federal programs.

Not to mention that we should never allow tax hikes when it’s so simple to balance the budget with modest spending restraint.

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I’ve periodically cited the great 19th-century French economist, Frederic Bastiat, for his very wise words about the importance of looking at both the seen and the unseen when analyzing public policy.

Those that fail to consider secondary or indirect effects of government, such as Paul Krugman, are guilty of the “broken window” fallacy.

There are several examples we can cite.

A sloppy person, for instance, will think a higher minimum wage is good because workers will have more income. But a thoughtful analyst will think of the unintended consequence of lost jobs for low-skilled workers.

An unthinking person will conclude that government spending is good for growth because the recipients of redistribution have money to spend. But a wiser analyst will understand that such outlays divert money from the economy’s productive sector.

A careless person will applaud when government “creates” jobs. Sober-minded analysts, though, will wonder about the private jobs destroyed by such policies.

It’s time, though, to give some attention to another important contribution from Bastiat.

He also deserves credit for the pithy and accurate observation about government basically being a racket or a scam.

And what’s really amazing is that he reached that conclusion in the mid-1800s when the burden of government spending – even in France – was only about 10 percent of economic output. So Bastiat was largely limited to examples of corrupt regulatory arrangements and protectionist trade policy.

One can only imagine what he would think if he could see today’s bloated welfare states and the various ingenious ways politicians and interest groups have concocted to line their pockets with other people’s money!

Which brings us to today’s topic. We’re going to look at venal, corrupt, wasteful, incompetent, and bullying government at the federal, state, and local level in America.

We’ll start with the clowns in Washington, DC.

Remember when the unveiling of the Obamacare turned into a cluster-you-know-what of historic proportions?

Well, the Daily Caller reports that the IRS has just signed an Obamacare-related contract with an insider company that recently became famous for completely botching its previous Obamacare-related contract.

Seven months after federal officials fired CGI Federal for its botched work on Obamacare website Healthcare.gov, the IRS awarded the same company a $4.5 million IT contract for its new Obamacare tax program. …IRS officials signed a new contract with CGI to provide “critical functions” and “management support” for its Obamacare tax program, according to the Federal Procurement Data System, a federal government procurement database. The IRS contract is worth $4.46 million, according to the FPDS data.

Just one more piece of evidence that Washington is a town where failure gets rewarded.

And CGI is an expert on failure.

A joint Senate Finance and Judiciary Committee staff report in June 2014 found that Turning Point Global Solutions, hired by HHS to review CGI’s performance on Healthcare.gov, reported they found 21,000 lines of defective software code inserted by CGI. Scott Amey, the general counsel for the non-profit Project on Government Oversight, which reviews government contracting, examined the IRS contract with CGI. “CGI was the poster child for government failure,” he told The Daily Caller. “I am shocked that the IRS has turned around and is using them for Obamacare IT work.” Washington was not the only city that has been fed up with CGI on healthcare. Last year, CGI was fired by the liberal states of Vermont and Massachusetts for failing to deliver on their Obamacare websites. The Obamacare health website in Massachusetts never worked, despite the state paying $170 million to CGI.

For a company like this to stay in business, you have to wonder how many bribes, pay-offs, and campaign contributions are involved.

Now let’s look at an example of state government in action.

Kim Strassel of the Wall Street Journal has a column about a blatantly corrupt deal between slip-and-fall lawyers and the second most powerful Democrat in the Empire State.

New York Assembly Speaker Sheldon Silver was last week arrested and accused by the feds of an elaborate kickback scheme. …Mr. Silver is alleged to have pocketed more than $5 million in a set-up in which he directed state funds to the clinic of an asbestos doctor, who in turn provided him with patients who could be turned into jackpot plaintiffs. Weitz & Luxenberg, a class-action titan, paid Mr. Silver huge referral fees for these names, off which the firm stands to make many millions. …when the Silver headlines broke, Weitz & Luxenberg founder Perry Weitz said he was “shocked”… The firm quickly put the Albany politician on “leave.”

A logical person might ask “on leave” from what? After all, he didn’t do anything.

But he did do something, even if it was corrupt and sleazy.

…here’s the revealing bit. Queried by prosecutors as to what exactly the firm did hire Mr. Silver to do—since he performed no legal work—Weitz & Luxenberg admitted that he was brought on “because of his official position and stature.” In other words, this was transactional. Weitz & Luxenberg gave Mr. Silver a plum job, and Mr. Silver looked out for the firm—namely by blocking any Albany bills that might interfere with its business model.

So workers, consumers, and businesses get screwed by a malfunctioning tort system, while insider lawyers and politicians get rich. Isn’t government wonderful!

Just one example among many of how state governments are a scam. Perhaps now folks will understand why I’m not very sympathetic to the notion of letting them take more of our money.

Last but not least, let’s look at a great moment in local government.

As we see from a report in USA Today, a village in New Jersey is dealing with the scourge of…gasp…unlicensed snow removal!

Matt Molinari and Eric Schnepf, both 18, also learned a valuable lesson about one of the costs of doing business: government regulations. The two friends were canvasing a neighborhood near this borough’s border with Bridgewater early Monday evening, handing out fliers promoting their service, when they were pulled over by police and told to stop. …Bound Brook, like many municipalities in the state and country, has a law against unlicensed solicitors and peddlers. … anyone selling goods and services door to door must apply for a license that can cost as much as $450 for permission that is valid for only 180 days. …Similar bans around the country have put the kibosh on other capitalist rites of passage, such as lemonade stands and selling Girl Scouts cookies.

Though, to be fair, it doesn’t seem like the cops were being complete jerks.

Despite the rule, however, Police Chief Michael Jannone said the two young businessmen were not arrested or issued a ticket, and that the police’s concern was about them being outside during dangerous conditions, not that they were unlicensed. “We don’t make the laws but we have to uphold them,” he said Tuesday after reading some of the online comments about the incident. “This was a state of emergency. Nobody was supposed to be out on the road.”

But the bottom line is that it says something bad about our society that we have rules that hinder teenagers from hustling for some money after a snowstorm.

Just like these other examples of local government in action also don’t reflect well on our nation.

Let’s close with my attempt to re-state Bastiat’s wise words. Here’s my “First Theorem of Government.”

And if you think what I wrote, or what Bastiat wrote, is too cynical, then I invite you to check out how politicians are bureaucrats are squandering money on Medicare, the Veterans Administration, the Agriculture Department, Medicaid, the Patent and Trademark Office, the so-called Consumer Financial Protection Bureau, the National Institutes of Health, Food Stamps, , the Government Services Administration, unemployment insurance, the Pentagon

Well, you get the idea.

Which is why this poster is a painfully accurate summary of government.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

And this anecdote shows how congressional budgeting and bureaucracy intersect.

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

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

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