Free Markets, Free People

government efficiency


The newest oxymoron? “Government efficiency”

I’m always surprised by people that think government can run something better and more efficiently than a private entity.  Oh sure, there are things that are best left to government – like national defense – because it simply makes more sense when it comes to that.  But the fact that we charge them with that duty doesn’t mean they run it efficiently.

Governments have no incentive to be efficient.  We’ve talked about how, in private concerns, the profit motive provides incentive to be efficient.  In government there is no such motive.  So waste, fraud and abuse are rampant.

How rampant?  Take a look at this chart:

We’ve all been told by the Democrats that the government can help lower costs in health care.  But when you look at the 4 health care items on the chart (Medicare fee for svc, Medicaid, Medicare part C and D), you are looking at $63.5 billion … that’s with a “b” … dollars a year in “improper payment rates”.  Also look at the percentage of error.  In the EITC program, 22.7% or 12.6 billion of what they pay out is in error. (Don’t forget, the chart looks only at programs of $750 million or more a year – and we all know there are literally thousands of government programs below that threshold doing the same thing.)

Add all these up and government is making about $100 billion dollars a year in improper payments.  So if anyone wonders why I snort derisively when I hear Congress talk about a $10 billion savings over 10 years (not to mention that usually means not spending as much as they now spend) you can understand why. We’re not bleeding money at a federal level, we’re hemorrhaging it. What in the world is a 10 year $10 billion dollar “savings” worth when government is blowing a trillion dollars in 10 years via waste, fraud and abuse?

But do they actually address the problem?  No.  We’ve known about this level of waste, fraud and abuse for years … decades even.  And absolutely nothing of worth has been done to correct it.  In fact, given the amount of expansion the federal government has seen in the last decades, it’s gotten worse.  As the Mercatus Center says:

While people of good conscience on both sides of the political aisle can debate the merits of whether or not government should be involved in certain activities, none should tolerate the high levels of improper payments currently associated with government spending on social welfare programs. Federal spending has grown too massive to be adequately overseen. Waste, fraud, and abuse squanders public resources and undermines trust in government.

Indeed.  But there is one sure fire way to at least reduce this waste, given the apparent fact that government hasn’t a clue about how to reduce it.  Get government out of areas it has no business and cut spending.  Simplistic?  Not really.  That is a solution, or at least a partial solution.  I certainly understand there will be argument about the areas where government should be involved or not, but hey, crazy me, I’ve always found the Constitution provides some pretty good guidelines.  And, of course, then you have to elect legislators with both balls and a charter to do that (and who won’t succumb to “Potomac fever” when they arrive on the scene) and stay on them until they do what is necessary to accomplish the task.

Yeah, I know, not going to happen anytime soon.  People like their government cheese too much and most don’t mind at all that someone else is paying the freight.

Meanwhile this atrocious and unacceptable waste of your tax dollars will continue unabated (and likely get worse) – a victim of “government efficiency”.

~McQ

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