Brookings scholar Elaine Kamarck has a new study favoring partial privatization of the U.S. Postal Service (USPS). Her study comes on the heels of a solid study by Clinton administration economist Robert Shapiro, who looked at the subsidies and regulatory protections enjoyed by the USPS.
New data show that worker compensation is rising faster in the federal government than in the private sector. After rapid growth in federal pay during the George W. Bush years, growth slowed from 2011 to 2013 after policymakers enacted a partial freeze on federal wages.
In the federal government, employees are paid to faithfully execute the laws, but they often pursue self-serving goals counter to those of the general public. Unionized federal workers actively oppose legislators who support reforms. Agency leaders try to maximize their budgets by exaggerating problems in society. They leak biased information to the media to ward off budget cuts. They put forward the most sensitive spending cuts in response to proposed reductions, which is the “Washington Monument” strategy.
The longest running show on Broadway is The Phantom of the Opera at 27 years. The longest running show on television is Meet the Press at 68 years. The longest running show of waste in Washington is cost overruns on Pentagon weapon systems. That show has been ongoing for more than 220 years.
Data from the Tax Policy Center show that 45 percent of U.S. households (“tax units”) will pay no federal income tax in 2015. That figure has risen in recent decades. In raw numbers, 94 million households will pay some income tax in 2015, while 78 million will pay none. As the TPC table shows, virtually all higher-income households pay income tax, while the nonpayers are mainly in the bottom half.
In a romantic view of democracy, legislators act with the interests of the general public in mind. They grapple with policy issues, work toward a broad consensus, and pass legislation that has strong support. They frequently reevaluate existing programs and prune the low-value and harmful ones. They put citizens first and limit their actions to those allowable under the U.S. Constitution.
The federal government spends almost $4 trillion a year. It has hundreds of agencies and runs more than 2,300 subsidy programs. It employs 2.1 million civilian workers, 1.4 million uniformed military personnel, and 560,000 postal workers. It is a huge organization.
We have released a study looking at cost overruns on government projects, such as weapon systems, light rail systems, and VA hospital construction.
The Inspector General (IG) of the Department of Homeland Security (DHS) has released a report finding waste in the department’s vast warehousing of equipment and supplies. Here are a few examples of the problems found by the IG:
The federal government spends hundreds of billions of dollars more each year than it collects in taxes. Those large budget deficits are financed by issuing growing amounts of debt. Federal debt now totals more than $13 trillion, or about $107,000 for every household in the nation.