The Two Americas: The Public Sector and Those the Public Sector Screws

Posted by PITHOCRATES - November 13th, 2010

Public Sector Living it Up While We Don’t

Who’s weathering the recession with the least amount of pain?  Why, the rich, of course.  And where do the rich live?  Well, according to Newsweek, seven out ten of the richest counties can be found surrounding our nation’s capital (see You live in nation’s richest counties posted 11/12/2010 on www.wtop.com).  Coincidence?  Or is it because many of those people living around Washington DC work in Washington DC?

Meanwhile, in California, voters rolled up a newspaper and swatted their public sector unions across their collective snout (see The Rollback Begins, and Investor’s Business Daily editorial posted 11/10/2010).

Last week’s elections didn’t just upend the Democratic Party in Congress. They also delivered a warning to the public-sector unions that form the core of the party’s support. In nearly all elections where public pay and benefits were an issue, the voters ruled that the era of ever-richer rewards for government was over: Say goodbye to fat pensions at 55. Get used to living like the rest of us.

Did they finally just have enough?  Or is it that they’re just finding out how much better they live than the people paying those salaries and benefits?

Then there’s the Bell effect. Earlier this year, struggling taxpayers learned just how well some public-sector employees were doing. The revelation of outrageous salaries in the California city of Bell was a catalyst for scrutiny of public pay in general. All kinds of data have surfaced since then about six-figure salaries and lavish overtime in places large and small. It’s clear that the governing class has not been shouldering its share of sacrifice in these tough times.

They had no idea how bad their government was screwing them.  When they did, they spoke at the recent midterm elections.  They said, “Bad public sector unions!  Bad!  [Deleted expletive] you and the horse you rode in on.”

Your Stimulus Program at Work: $27 Light Bulbs

And if the raping and pillaging wasn’t bad enough (and don’t you think it should be?), look at what we got for that excessive compensation.  Graft, corruption and incompetence.  Government construction contracts have long been a license to steal.  The vehicle of choice?  Change orders.  Contractors win bids by submitting quotes substantially below cost.  Once they get the contract, the raping and pillaging begins.  They submit grossly inflated invoices for extra work.  Bloomberg reports a typical example (see New Jersey Auditor Questions $27 Light Bulbs Billed Under Stimulus Program by Dunstan McNichol posted on 11/12/2010). 

One contractor sought $27 for light bulbs, while another billed $1.50 for similar items, according to the report and Assistant Auditor Thomas Meseroll. Another vendor charged $75 for carbon-monoxide detectors that it had provided to a different program for $22, the report said. Eells also cited $32,700 in auditing fees when “no services had been performed” and $69,000 in construction costs that couldn’t be verified.

There are honest contractors out there.  But it’s hard for an honest contractor to get any of these contracts when incompetent boobs in government make it so easy to steal.  Especially repugnant in this example is that we paid for this contract via the $814 billion federal economic-stimulus program.  And, sadly, we know this is not the exception to the rule.  It is the rule.

Neither Rain nor Sleet nor Competence nor Fiscal Accountability

Whenever government runs anything they do a piss poor job of it.  Take, for example, the U.S. Postal Service (USPS).  Sure, it’s an independent organization, but the House oversees it.  And provided it a $15 billion line of credit.  Which they just borrowed the remaining $3.5 billion available on it (and who out there really thinks that they will repay that $15 billion?  If you have your hand up, put it down.  You’re embarrassing yourself).  If it walks like a duck, quacks like a duck then it’s run by government.  And run poorly.  UPS and FedEx are doing fine.  In fact, they’re chomping at the bit to deliver some mail.  But the government says no.  Only government has the requisite skill and expertise to walk around and put things into slots (thank you Seinfelds Newman for that bastardized line).  And just how well are they doing over there at the USPS?  Not good.  They’re projecting bankruptcy unless government saves their sorry ass (see Postal Service posts $8.5 billion loss by Ed O’Keefe posted 11/12/2010 on the Washington Post).

The cash-strapped U.S. Postal Service delivered more bad news Friday, announcing it lost $8.5 billion in the fiscal year that ended in September. Without congressional action to change its obligations, officials said, the Postal Service likely will go broke at the end of fiscal 2011.

Railroads used to say they were in the railroad business.  That’s why a lot of them went belly up.  They didn’t know what kind of business they were in.  And because of that, their competition swooped in and took their customers.  Because truckers understood what kind of business they were in.  Transportation.  And they could compete against the railroads.  Stunned by this revelation, the railroads reinvented themselves.  Understood their role in the transportation industry.  They’re doing well now.  That’s what the USPS needs to do.  Find their role.  Because this can’t be your dad’s USPS anymore.  And they can’t keep trying to run it like it is.

The Only Thing Government is Good for They’re not Good AT

Whether it’s graft or incompetence, the end result is the same.  Government screws us.  That’s what the power to tax can do for you.  You can give yourself whatever pay and benefits you want.  You have no competition.  No one can sell better government services for less.  There is no restraint on their greed but their conscious.  Which, of course, they have repeatedly shown not to have one.

If you place a government employee into a room, without a doubt he or she will be the most unqualified person in the room.  They have no marketable skills.  They can’t run a business.  They just know how to buy and sell votes.  And how to get rich off of the public purse.  If you want to destroy a business, let government run it.  If you want cost overruns, let government run it.  If you want to cozy up with unscrupulous people who want to steel from the public purse, let government run it.  And yet who do we keep demanding to fix and run things?  Government.  It boggles the mind. 

We need government.  Some government.  As in ‘limited’ government.  Private business cannot provide some public goods and services.  Sanitary sewers, for example.  Or the fresh water system.  But it’s like Peggy Bundy said on the television show Married with Children.  She was lamenting about the sexual inadequacy of men.  She said, “The only thing they’re good for they’re not good at.”  And so it is with government.  At least, based on their track record.

www.PITHOCRATES.com


Share

Tags: , , , , , , , , , , , , , , , , , , , , , ,

Comments are closed.

Blog Home