Both the economy and the environment are complex ecosystems. Governments often upset the natural balance and cause damage because they combine limited understanding with an excessive zeal to mandate and subsidize.
USA Today reported: “The Port Authority, which operates the bridge at the heart of a New Jersey scandal, says a key appointee of Gov. Chris Christie directed the controversial closing of access lanes to the George Washington Bridge … David Wildstein and Bill Baroni, who were appointed to the Port Authority by Christie, have resigned in the wake of the scandal.”
Robert Poole is one the nation’s top experts on privatization and transportation policy reform. He has a great new Hudson Institute study on problems with our air traffic control (ATC) system and ideas for restructuring it. The nation’s ATC system is operated by the Federal Aviation Administration (FAA).
In my testimony last week to the House Oversight Committee, I focused on aid-to-state programs as a major source of waste in the federal budget.
All federal programs impose burdens on taxpaying families, and so members of Congress have a duty to weed out low-value agencies, programs, and activities on an ongoing basis.
Wasteful spending is a fundamental problem with the way the government works. Private businesses can also make bad decisions, have cost overruns, and misallocate investments. But private markets have built-in mechanisms to minimize those problems, whereas the government does not.
The New York Times today described a vast Social Security Disability fraud scheme among retired New York City police officers and firefighters. The retirees were collecting tens of thousands of dollars per year in fraudulent SSDI payments by faking various illnesses. Many of the claims stemmed from false allegations of disabilities caused by the 9/11 terrorist attacks.
In a speech on Friday, outgoing Fed Chairman Ben Bernanke defended his record of extraordinary policy interventions. One of his framing techniques is to claim that extreme monetary efforts were needed in the last few years—from his Keynesian perspective—to offset “contractionary” fiscal policy.
Republican Senator Dean Heller of Nevada has co-sponsored a bill to revive the emergency unemployment insurance program. Senator Harry Reid is pleased as punch that Heller is breaking with the “tea party folks” on the issue.
Federal Reserve chairmen are famous for their opaque but sophisticated-sounding comments designed to make it appear that they know more about the shape of the economy than they really do. But outgoing chairman Ben Bernanke’s direct and transparent assertions yesterday about fiscal policy also left me scratching my head.