Government Workers Yawning As Taxpayer Dollars Are Stolen
There's a lot of opportunity for theft of pandemic-related funding and plenty of people are seizing it.
A few examples of obvious fraud, per a Bank of America report: Hundreds of unemployment debit cards going to the same address, multiple cards using the same contact phone number or address, and benefits issued to babies and children as well as very elderly people not likely to be working.
Bank of America estimates that there's more than $2 billion in fraud in California's expanded pandemic unemployment benefits system. "The bank has identified 640,000 potentially fraudulent accounts," writes Brad Polumbo at FEE:
Michigan unemployment worker Brandi Hawkins was charged with allegedly having distributed more than $2 million in fraudulent funds. That's right: $2 million swindled from taxpayers by just one person! One can only wonder how many more like Hawkins got away with it.Why does endemic fraud so consistently plague government welfare systems? It's due to a simple principle explained by Nobel-prize-winning economist Milton Friedman in his book Free to Choose.
He identified the four types of spending. You can spend your money on yourself, in which case you'll be quite judicious with it. You can also spend your money on someone else, or someone else's money on yourself. In either case you'll still have a strong incentive to spend the money responsibly.
Yet Friedman identified a fourth scenario.
"If I spend somebody else's money on somebody else, I'm not concerned about how much it is, and I'm not concerned about what I get," the economist wrote. "And that's government."As long as California voters keep voting for progressive legislators who think the government can solve all our problems, billions of their dollars will keep getting flushed down the drain.
In this case, legislators rushed to expand unemployment benefits to convince voters they were doing something to help people amid a crisis. Yet the government bureaucrats handling California's unemployment program weren't particularly concerned about where billions of taxpayer dollars actually went.
But that's Big Government for you in a nutshell. As long as California voters keep voting for progressive legislators who think the government can solve all our problems, billions of their dollars will keep getting flushed down the drain.








What's more, it's not the effectiveness of the program on which politicians run, but on the program itself. It's not that their billion-dollar program solved the problem, but that they voted to implement a billion-dollar program that's put forth as a reason to re-elect them. And that's what gets them re-elected.
Trump asked in the 2020 election what people were getting from the Democratic administrations they kept electing in cities like Baltimore, Detroit, and Philadelphia. It's a good question. These cities are mired in poverty and several levels of government are spending billions on amelioration efforts to no avail.
It is time we started judging politicians not on the existence of signature programs, but on the effectiveness of those programs in achieving the stated aims. Instead of spending all their time coming up with new ways to spend money, politicians might then be incentivized to monitor the effectiveness of the billions of dollars of our money that they're spending.
Conan the Grammarian at December 11, 2020 6:25 AM
Coney, most voters — truly, most of them — aren't creating the wealth that's being spent, and can't imagine they'd ever be required to.
Most voters adore the sanctimony by which the left affirms itself. They enjoy the presumption that spending the wealth of others is a demonstration of something kind in their own hearts.
No matter what one's take on policy might be, the truest expression of how you value something, charity or education or roads or anything at all, is how much money you personally pay for it.
Taxation does not count in this moral calculation. Once your money is mingled with that of others, the moral authority which it might portend is evacuated.
Crid at December 11, 2020 10:58 PM
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