HOME

ABOUT US

OUR ISSUES

Information & Access

Nonprofit Advocacy

Regulatory Policy


PRESS ROOM

ACTION CENTER

PUBLICATIONS

THE WATCHER

OUR BLOGS


SIGN UP

Receive news, updates, and alerts!

DONATE

Help support our work


OTHER SITES

FedSpending.org

RTK NET

NPAction

Working Group on Community Right-to-Know

Citizens for Sensible Safeguards

Open the Government

OMB Watch Logo

Demanding a federal budget that is fair, responsible, and meets our nation's priorities

Home :  Federal Budget & Tax : 
Federal Budget & Tax:      News     Blog     Background    



Monday, October 23, 2006

Heritage Gets Desperate

The Heritage Foundation blog put an irresponsible bit of nonsense on their blog last week.

Drawing on an unscientific, informal poll of the readers of Federal Times, the author concludes that there is still much waste in federal programs that can only be rooted out with more competition from the private sector.

From a policy perspective, we wonder that competitive sourcing wouldn't address the lax and wasteful budgeting and work procedures behind these poor results. The basic idea is that government workers compete with private-sector entities in submitting bids for the functions that they now perform.

Big surprise, I know- Heritage thinks market forces make everything nice again. But the interesting thing here is that, for the last 6 years, the Bush Administration has been actively pushing an extreme privatization agenda, outsourcing thousands of jobs and effectively doubling the amount of money spent by government contractors.

And guess what? It hasn’t saved a dime. Nobody has documented any actualized savings.

Moreover, privatization has undermined the integrity of several federal agencies. Abuse, fraud and waste are rampant in federal contracting. Just take a look at the news and you'll see what I mean.

Heritage-ies might think that this only means we haven’t gone far enough. Privatize more and better, they’ll say, and the theory will finally bear itself out. That might be true. Who knows? But privatization has gone very far already. Nearly 1 million jobs have been slated to be examined for their potential to be privatized, thousands have been privatized, and government contracting has gotten out of control. Given the sheer scope of privatization over the last 6 years, in the very least, it’s clear that privatization has not made that much of an impact on the cost of government services.

For the last 6 years of failure, though, Heritage has sung the same song, despite mounting counterfactuals. Makes you wonder if they’re really all that interested in solving the problem. Or if the problem of widespread waste and inefficiency by government employees ever really existed in the first place.



Posted by Matt Lewis



Entries by Theme

All Themes

Appropriations & Spending

Federal Tax Policy

Income/Wealth Inequality

Budget Projections

Government Performance

Estate Tax

State Fiscal Policy

Watcher

Entitlements

Budget Process

Debt & Deficit

Oversight & Enforcement

Transparency

Privatization

Contact Us

Most Recent Entries for Federal Budget & Tax

Orszag to head up OMB?

Change We Can Believe In?

Grassley Asks Treasury IG to Look Into Tax Rule Change

Time to Get Tough on the Swiss

Treasury Overrides Congress Through Fiat, Giving Banks $140 Billion in Tax Breaks

House Definitely Maybe Returning for Lame-Duck Session

Paulson: Troubled Asset Relief Program Will Not Buy Troubled Assets

Trust But Verify

Treasury Releases TARP Transaction, First Tranche Reports

TARP Accounting: More than One Way to Follow the Law?

Archived Entries for Government Performance

November

October

September

August

July

June

May

April

March

February

January

December, 2007

November, 2007

October, 2007

September, 2007

August, 2007

July, 2007

June, 2007

May, 2007

April, 2007

March, 2007

February, 2007

January, 2007

December, 2006

November, 2006

October, 2006

September, 2006

August, 2006

July, 2006

June, 2006

May, 2006

April, 2006

March, 2006

February, 2006

December, 2005

November, 2005

October, 2005

September, 2005

August, 2005

July, 2005

June, 2005

April, 2005

March, 2005

December, 2004

November, 2004

October, 2004