Fraud and Abuse
In this essay on government construction projects, I discuss how promoters use “strategic misrepresentation” to subdue taxpayer opposition and get dubious spending schemes approved. The low-balling of projected costs is a tried and true deception used by infrastructure promoters the world over.
Many articles in recent years have expressed concern about Pentagon bloat. Mackenzie Eaglen called for streamlining the Pentagon’s “army of bureaucrats.” Ray Mabus said“Twenty percent of the Pentagon budget, one dollar out of five, is spent on … the Office of the Secretary of Defense and the defense agencies … Pure overhead.”
Congratulations to Senator James Lankford of Oklahoma for his new report “Federal Fumbles.” The senator and his staff identify 100 screw-ups in federal programs and agencies, and propose some modest fixes.
Back in 2011 I wrote several times about the failure of Solyndra, the solar panel company that was well connected to the Obama administration. Then, as with so many stories, the topic passed out of the headlines and I lost touch with it.
A common feature of Obama administration economic policies is the use of government coercion. The Obamacare health law mandated that individuals buy insurance. The administration’s tax increases grabbed more earnings from millions of people. And federal agencies are imposing an increasing pile of labor, environmental, and financial regulations on businesses.
Americans have a sour view of the federal government. Just one-third of people think Washington is competent. The public thinks half of taxes collected are wasted. More people say “government” is the nation’s most important problem than say that honor goes to the economy, immigration or terrorism.
I testified to the House Budget Committee yesterday on the history of federal debt and reasons to balance the budget. John Taylor, Jared Bernstein, and Ryan Silvey also testified.
The federal Supplemental Security Income (SSI) program provides income to low-income, disabled individuals, including children. In 2014, SSI paid benefits totaling $56 billion to 8 million people. A new Government Accountability Office (GAO) report suggests that a substantial share of that money was spent improperly.
The Transportation Security Administration (TSA) has another failure on its hands. In recent tests, undercover investigators smuggled mock explosives and banned weapons through U.S. airport checkpoints 96 percent of the time. According to ABC, “In one case, agents failed to detect a fake explosive taped to an agent’s back, even after performing a pat down that was prompted after the agent set off the magnetometer alarm.”
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