Most Outrageous Government Waste
Bureaucrats Have Little Incentive to Spend Taxpayer Dollars Responsibly
Mr. Schatz is president of Citizens Against Government Waste.
Since my job is to be a watchdog on government waste, I’m often asked about the most outrageous cases.
That’s a tough call because government bureaucrats never take care of your money as carefully as you would take care of it yourself. More important, bureaucrats spend money on what government wants, not what you want—which is the whole point of taxing away your money.
Without authorization, for instance, the feds spent $19.6 million annually on the International Fund for Ireland. Sounds like a noble cause, but the money went for projects like pony-trekking centers and golf videos.
Congressional budget-cutters spared the $440,000 spent annually to have attendants push buttons on the fully automated Capitol Hill elevators used by Representatives and Senators.
Last year, the National Endowment for the Humanities spent $4.2 million to conduct a nebulous “National Conversation on Pluralism and Identity.” Obviously, talk radio wasn’t considered good enough.
The Pentagon and Central Intelligence Agency channeled some $11 million to psychics who might provide special insights about various foreign threats. This was the disappointing “Stargate” program.
The Department of Education spent $34 million supposedly helping Americans become better shoppers and homemakers. Wasn’t it about time?
The federal government proposed spending $14 million for a new Army Museum, although there already were 47 Army Museums around the country. We helped stop that idea.
Dubious government spending schemes abound since bureaucrats play with other people’s money. For example, the National Institutes of Mental Health (NIMH) spent $70,029 to see if the degu, a diurnal South American rodent, can help us better understand jet lag . . . they spent $77,826 to study “Coping with Change in Czechoslovakia” . . . $100,271 to see if volunteering is good for older people . . . $124,910 to reduce “School Phobia” in children . . . $161,913 to study “Israeli reactions to SCUD Attacks during the Gulf War” . . . and $187,042 to study the quality of life in Hawaii.
Over the years, political wrangling twists the most noble-sounding government programs beyond recognition. For example, the Social Security Administration’s $25 billion a year Supplemental Security Income (SSI) program. Almost 250,000 children qualify for SSI checks because they can’t participate in “age appropriate activities.” Worse, thousands of prisoners get SSI checks relating to their alleged disabilities—costing taxpayers about $20 million a year.
That’s not all. In Denver, the government reportedly sent $160,000 to recipients at their “official address”—a tavern. A San Francisco addict used his SSI check to buy drugs, which he subsequently sold on the street for a profit. A Van Nuys, California, alcoholic received a $26,000 SSI check, then spent the money on a van and two cars which he subsequently wrecked while driving drunk. Los Angeles SSI recipients reportedly faked mental illness and had a doctor concoct false medical records, so they could pocket $45,000 worth of checks. An estimated 79,000 alcoholics and drug addicts are believed to spend SSI checks—some $360 million annually—on their habits.
Again and again, programs aimed at the poor are captured by well-heeled interest groups. For example, the Commerce Department’s U.S. Travel and Tourism Administration (USTTA) gave away $440,000 in so-called “disaster relief” to Western ski resort operators when there wasn’t much snow.
The Economic Development Administration spent “anti-poverty” funds to help build a $1.2 million football stadium in spiffy Spartanburg, South Carolina. During the summer, it will serve as a practice facility for the National Football League Carolina Panthers, and the rest of the year it will be used by Wofford College, which has a $50 million endowment.
Look at one of the most enduring legacies of Lyndon Johnson’s “War on Poverty”: the Appalachian Regional Commission. It was billed as help for an impoverished region. During the past three decades, this bureaucracy you’ve probably never heard of has spent $6.2 billion, yet the region remains impoverished.
Where did the money go? Two-thirds was spent building 26 highways connecting well-to-do urban centers. The money went to construction workers whose wages are definitely above-average. Despite revolutionary talk in Washington, the Appalachian Regional Commission goes on and on.
Or take the plight of the family farmer. I know you’ve been regaled about wasteful spending on agricultural subsidies, so I’ll just cite a single intriguing example: 1.6 million farm subsidy checks for $1.3 billion, mailed to urban zip codes during the past decade. New York City “farmers” pocketed $7 million during the past decade, Washington, D.C., “farmers” $10 million, Los Angeles “farmers” $10.7 million, Minneapolis “farmers” $48 million, Miami “farmers” $54.5 million, and Phoenix “farmers” $71.5 million. Among those on the take, to the tune of $1.3 million: 47 “farmers” in Beverly Hills, California—one of America’s wealthiest cities.
A lot of government spending is justified as necessary for national security. For instance, maritime subsidies supposedly help maintain a fleet for an emergency. Laws require government agencies to use U.S.-flag vessels which are U.S.-built, U.S.-owned, and U.S.-crewed, costing two to four times the world market price of comparable vessels available elsewhere. When the U.S. Department of Agriculture and Agency for International Development give away surplus grain, they must use U.S.-flag vessels for at least 75 percent of shipments, adding $233 million to the taxpayer burden. The U.S.-flag requirement adds $1.75 billion to the defense budget. Subsidy per maritime job: over $100,000.
The defense budget is larded with waste not because it’s run by bad guys but because it’s big, and bureaucrats are, as always, spending other people’s money. The Pentagon has an “operational support airlift” consisting of some 500 airplanes and 100 helicopters for flying military brass and civilian bureaucrats on 1,800 trips a month—costing taxpayers $380 million a year. Many of the destinations are served by commercial airlines.
Last year, the Pentagon announced it would spend $5.1 million to build a new 18-hole golf course at Andrews Air Force Base in suburban Maryland, which already has two. Golf Digest reported there are 19 military golf courses around Washington, D.C. Why a new golf course? One Pentagon official was quoted as saying “a lot of golf gets played out there. On Saturday mornings, people are standing on top of each other.”
Can It Continue?
How can such outrageous waste go on year after year? Simple: bureaucrats aren’t doling out their money, so they have little incentive to be responsible. Politically connected special interests, who are usually better off than the average taxpayer, seem to get most of the loot.
The most powerful special interest is government itself. In fiscal year 1993, the federal government owned 569,556 vehicles—one for every six full-time employees. Included were 117 limousines. The government’s fleet expanded more than 130,000 vehicles since the Grace Commission called for it to be cut in half more than a decade ago.
Government officials multiply the number of regulations regardless of the waste they cause. For example, the Defense Department has 1,357 pages of regulations about how officials travel. Complying with these regulations adds about 30 percent to travel costs. If the Pentagon adopted the best practices of private companies, it could save an estimated $650 million to $840 million every year. Of course, government regulations cause enormous waste in the private sector—tax compliance costs alone run into the billions—but that’s a vast subject unto itself.
The federal government wastes money through grants to the most politically powerful environmental lobbyists. For example, between 1990 and 1994, the Natural Resources Defense Council got $246,622; Defenders of Wildlife, $1,285,658; Environmental Defense Fund, $1,493,976; and the World Wildlife Fund, $26,584,335. All together, environmental lobbyists collected $156,644,352 during this period. Every one pushes the federal government to enact more regulations.
Whenever you hear a politician propose that government take over some private business, like New York’s troubled Long Island Lighting Company, there should be red flags all over the place, because government operation means high costs. At the U.S. Government Printing Office, for instance, costs are estimated to be 50 percent higher than in the private printing industry. If the U.S. air traffic control system were transferred to private companies and the services paid by user fees, taxpayer savings would probably be around $18 billion over the next five years.
With a $1.5 trillion annual budget, the feds take so much of your money that they can’t possibly keep track of it even if they wanted to. For example, a contractor sold $27 electronic relays to the government’s Strategic Petroleum Reserve for between $484 and $521 apiece. The Department of Energy paid some of its employees $5,000 a year to lose weight—the outlays totaled $10 million a year. The owner of a California apartment building got Department of Housing and Urban Development subsidies, then illicitly diverted $610,000 into his own accounts. One “farmer” collected $1.6 million in government insurance payments for non-existent crops. Forty-three people in New York City pocketed over $40 million in phony food stamp claims. Five Floridians stole $20 million from Medicare—part of the estimated $17 billion of annual Medicare fraud.
What to do about such waste? The government is crawling with auditors, and there have been a zillion investigations, yet waste goes on. Citizens Against Government Waste will continue to be a watchdog. The only long-term solution, though, is to somehow cut big government down to size. Only when it’s much smaller will you be able to keep more of your hard-earned money, which, after all, is yours.
Comment by tospendalot on 2 April 2009:
I am looking for organizations on the internet dedicated to identifying programs and activities in the federal government that waste taxpayers money. Is there a directory on the internet that has a list of such sites?
Comment by nate johnson on 20 April 2009:
wow im just suprised psychics come on doesnt the government have better things to spend their money on like drug prevention or education even community outreach programs but no trying to read the minds of terrorists is important i guess
Comment by Dick on 21 October 2009:
I work for the Department of Defense and see this everyday. It’s completely sick……..can’t say it enough!!
Comment by IAIresearch on 12 March 2010:
The only way to stop wasteful spending, and its eventual debilitating taxation, is to starve the government machine. Yet our founders envisioned even this occurrence in Article V of the Constitution: “Congress … on the application of the Legislatures of two thirds of the several States, shall call a Convention for proposing Amendments, …” The only solution is to amend with
1. Except in time of declared war against a foreign enemy, the federal government shall balance its budget. Further, the total cash expenditures of the federal government shall not exceed eighteen percent (18%) of the prior year’s gross domestic product.
2. Included in budget expenditures will be a 3% annual payment to retire the national debt.
3. Any increase in taxes or other sources of revenue shall require a 2/3 vote of each chamber of Congress.
4. No unfunded mandates or requirements shall be placed on state or local governments.
Please share with others.
http://www.IAIresearch.wordpress.com
Comment by Orion on 14 October 2010:
Comment above=Genius
I agree
It’s silly really, although the government is the one constantly spending the money it’s still American citizens who want them to do more.
Comment by Buddy George on 1 December 2010:
A matter that needs investigated
On case#VA107160
People Vs buddy lee George
Norwalk superior court norwalk California division S
Judge the Honorable Roger Ito
Los Angeles county district attorney Kang.
A case that can be proved as unconstitutional due to the following
1.) I was denied my due process rights.
2.) the district attorney had me charged with prison priors and strikes that I did not have and it was not until after the verdict did she admit her mistakes.
3.) I was denied to confront witnesses I supoened 5 officers and only one showed up.
4.) the only witness that showed up was detective hakala from Whittier police department he was the lead detective and expert witness.
5.) the was bias with the processing of evidence he used his own lab.
6.) he lied under oath by saying he removed the drugs before the pre search video because he had a dog.
7.) the evidence in the case had been destroyed before the trial
Evidence was destroyed 5-29-09
The verdict was read on 8-15-09
8.) the attorney that represented me right before the trial caused a conflict of interest by violating attorney client privilege by having a meeting with the city of la mirada without my permission nor knowledge were he discussed my case were he was convinced by the city saying I should take a deal under the condition I move out of la mirada when I get out of prison.
9.) Henry salcido also told me at one point he didn’t care If I was innocent or guilty I should take a deal.
10.) he also told me at one point he was best friends with steve Cooley and if I gave him $180.000 and sign over the deed to our home he could make the case disappear.
11.) their was two retired district attorneys that were working for Henry salcidos law firm that were also over familiar with sheriffs and narcotics department that were involved in my case.
12.) through the whole case the la mirada mayor and council members had law enforcement harassing me their was about 300 or more calls made to law enforcement with the intent to have me harassed
13.) I can also prove false imprisonment.
14.) I was charged with possession for sales when no drugs were ever found to be in my possessing neither was any money ever recovered and according to the detective he found $13 dollars worth of drugs in our home all together in separate bags and only one had been tested.
15.) it was unconstitutional for detective hakala to target me when their was 5 occupants living in our home at the time.
16.) the search warrant he used to get in our home the day he supposedly found the drugs was stamped denied.
17.) the second search warrant had a type -o- error and the name on the search warrant was Walter Eugene Farris a guy that I don’t know and neither did any one els that lived in our home and he had never been in our home.
18.)The attorney that represented me during the trial had not been given enough to to familiarize her self with my case the judge refused to give her time to overlook the case.
19.) after we picked the jurors one of the jurors was prejudice he said no matter what he would find me guilty because he hates drug dealers the judge still allowed juror # 19 to hang out with all the other jurors until he was replaced.
The following needs to be investigated
1.) violation of due process rights
2.) my state and federal rights were violated.
3.) false imprisonment
4.) harassment
5.) negligent
6.) malpractice
7.) wrongful conviction
8.) officer misconduct
9.) judicial misconduct
10.) cruel and unusual punishment. Email below evidence when the evidence had been destroyed a email from detective hakala to district attorney kang.
11.) the city of la mirada offered to buy our home at cost saying under the condition I couldn’t live in la mirada nor Whittier.
12.)la mirada law enforcement was raiding our home practically daily.
13.) before this case started detective jerry Reyes told me as he handed me his card with his hand writing on it that if I dident help him he would fuck me.
14.) detective hakala and district attorney kang kept inflicting lies on the jury.
15.) I was not on probation or parole when this case started.
16.) our car had also been impounded 3 to 4 times every time officers said just tell us were the drugs are we won’t impound the vehicle and every time I was honest by saying I don’t have any drugs they impounded it any way.
Buddy George – VA107160From: joanne alberry
View Contact To: LAURIE YTARTE —————–
————————————————————-
– Laurie,here is the email from the Detective
telling the court that all the property was
destroyed. Sorry about all of it. Feel free to mail
me any payments you can at my office address
4229 Main St Suite 4 Riverside CA 92501 I will
let you know when I find an attorney who will
take on a governemtn entity. good luck to you
and Buddy,Joanne ———- Forwarded message
———-From: Date: Fri, Sep 25, 2009 at 7:23
AMSubject: Fw: Buddy George – VA107160To:
joannealberry@gmail.com Hi Joanne, Per our
conversation, here is the email from Detective
Hakala confirming that the evidence was
destroyed. I will request that our matter be taken
off calendar today. Thanks. ———————-
Forwarded by Miriam Kang/DAUsers/NLADA on
09/25/2009 07:22 AM ————————— To:
cc: Subject: RE: Buddy George – VA107160 I
contacted our central property and the items
seized in the Buddy George case (408-15814-
0460-184) were dispoed on 05-29-09. Any other
questions just let me know. Eric ———————
———————————————————–
From: MKang@da.lacounty.gov
[mailto:MKang@da.lacounty.gov]Sent: Thu
9/24/2009 2:49 PMTo: Hakala, Eric J.Subject:
Buddy George – VA107160 Hi Detective Hakala,
Just as a reminder, please email me a letter
confirming that the the property booked into
evidence for this case has been disposed of and
the date of disposal. Thanks so much!
Sincerely,Miriam KangDeputy District
AttorneyTel: 562-807-7211
Sent from my iPhone
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Comment by Mommag on 3 February 2011:
Isn’t there 1 good attorney willing to take on this man’s case, for pete’s sake.
RE: Government overspending, fraud, etc. I almost feel helpless and hopeless; but if a few people start trying to do something, maybe it could make a difference. For one thing, when I was young and trusting, I always assumed businesses and people did things or sold things to the government at a discount. Then I grew up & found out it was actually the opposite – they gouge the government. It is such a shame. People who are very charitable (which can be deducted from taxes), but take advantage of government should be ashamed of themselves. WE are (at least supposed to be) the government, so they are gouging their neighbors and families not some unknown bureaucrat. Charity begins at home, charge the regular market price – or lower – for your goods and services. AND to Congress, unless a project is direly needed to protect life or limb, it should not be approved until our National debt is paid off. If you don’t have the money for something, you have to wait until you do – that’s what most Americans have to do. HOW CAN I HELP find fraud, etc and expose it? Can I do research online or something else? I want to do SOMETHING; I don’t like feeling hopeless and helpless.
Comment by Noah Hughes on 8 February 2011:
I don’t really have any comments except i think that perhaps the government is in a very confused and misled situation the last couple of years. I think that it’s possible however that new laws can be made to reduce over consumption and patient processing so that Americans would quit putting themselves in a deeper, agonizing deficit. It’s not right and it’s not fair that we as the American people are ruining ourselves, every finger can’t be pointed at the government alone. Just face it and realize that the American people need a better guidance for a better eco-system.
Comment by Dan on 2 March 2011:
Noah,
You’re seriously saying that the government needs to protect us from ourselves? For the sake of the environment?
Comment by vern on 9 March 2011:
Its very good to find government waste, but to pick on the little guys waste’ing his benifits instead of the blue collar or above wasting tax payers dollars should be a crime.Pick on somebody your own size, coward!
Comment by vern on 9 March 2011:
pick on somebody your own size coward
Comment by mackinder on 17 April 2011:
the goverment needs to cut these corupted programs to help the needy as well as make goverment service strictly voluteer. they can make thier money by giving speeches like Bill Clinton. we should also eliminate lobbeing and the parties making everything independent. this would solve some of the childish bikering. im not proposing communism just a more independent govermental system.
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Comment by Philip Lewis on 19 November 2011:
From June, 1996 … could just as well be published tomorrow. It remains disgusting and scandalous … however, Americans have gotten so used to being “ripped off” by our corrupt, sniveling, lazy political elites … we refrain from flogging, hanging and the firing squad. Quarter Nancy Pelosi on CNN and perhaps our “resident thieves” will learn a lesson. Am I being a bit too mild?
Comment by Aaron on 22 November 2011:
I was hoping for an informative article when I came across this headline. The wordy writing style is distracting and the lack of supporting information for the conclusions is disappointing. Government waste is a worthy topic and there are many examples that could have been cited. The logical fallacies in this article, however, do a disservice to the cause of combating government excess. Anecdotes about misdeeds by welfare recipients only show that the system can be gamed, but don’t even scratch the surface of the real problems. These are examples of fraud and poor behavior by individuals. Although deplorable, these stories are only tangential to the deeper issues of government waste. The brief descriptions of government programs are mere dysphemism; they give a negative spin without really identifying the nature of the program. Many studies can be made to sound ludicrous. For example, if I told you that a scientist had been studying mold growing on bread, you might think that an undeserving cause. Never mind that this is how penicillin was discovered. Government waste is an outrageous problem that affects us all. I had really hoped to see an article that built solid, coherent arguments based on fact, but this author seems ill-equipped to take on this noble task.
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