August, 2014 Political Class Insanity, Part 2; Social Security Wastes $300 Million, NASA Wastes $350 MIllion, and More

It is that time of the month where every month we review the latest insanity, ineptness, wasteful spending, stupid quotes, and other frivolity of the American political class. Unfortunately, we have a pretty full plate this month, a plate that is going to take a long list of posts to get through as our politicians continue to prove that we are living through the worst set of politicians today that this nation has ever had to endure.

Our first insanity update was yesterday, making this the second in what promises to be a long series of continuing ineptness by the American political class.

1) We start off today with a typical Federal government data systems project. Typical in that after spending big bucks to build the system, the system does not work, much like the Obama Care online heath insurance exchange data system processes. This example was within the Social Security administration and involved the following fiascos, according to a recent Associated Press report:

• The Federal Social Security Administration (SSA) spent nearly $300 million on a new computer system to handle disability claims.
• Despite spending so much money, the Administration cannot get it to work. 
• They have been working on the project and problem for six years and still have no idea when it might be available to help with the high volumes of disability claims.
• The SSA claims the project is still only in the testing phase, six years and $300 million later, but claims it cannot estimate when it will be operational or how much it will cost.
• "The program has invested $288 million over six years, delivered limited functionality and faced schedule delays as well as increasing stakeholder concerns," said a report by McKinsey & Co., a management consulting firm.
• According to the article, SSA executives have decided to "reset" the program in an effort to save it and needed bring in the outside consultants from McKinsey to figure out what went wrong.
• On top of the operational problems and disasters, now the House Oversight Committee is also looking into the computer project, and whether Social Security officials tried to bury the McKinsey report, with committee members officially calling the project "an IT boondoggle."

Unfortunately, this is so typical of large Federal government data systems projects. We have previously reported on such ineptness where we discussed a study that found over 90% of large government data systems projects never get finished at all or fall far short of their intended goals.

Thus, while members of Congress worry about trivial things like the name of the Washington Redskins or names of Post Office locations, we are pretty sure that the Federal government is basically broken at the operations level in executing its basic functions. But that that situation never seems to be part of what politicians are worried about, issue PR releases about, or set up photo ops about.

2) Depressing article recently published by the AgainstCronyCapitalism.org website, "The Real Problem with the Economy," further illustrated the economic ignorance and stupidity of the current political class. Their inability to understand basic economic theory and policy has resulted in probably the most serious deterioration in the standard of living in this country in our entire history.

According to the website’s review of a recent New York Times article, the inflation-adjusted net worth for the typical American household was $87,992 in 2003. Just ten years later, it was only $56,335, representing a whopping 36% decline when adjusted for inflation and reality. This analysis and depressing finding was included in a study financed by the Russell Sage Foundation. 

I would bet that most long term members of Congress have been immune to this trend, given that they currently enjoy annual salaries that are three times the size of the $56,335 median. Their immunity and economic ignorance probably means that their personal trend will not turn around soon.

That is why we suggested Step 36 from “Love My Country, Loathe My Government” be implemented for all members of Congress. Step 36 reads as follows: Require all members of the political class upon their election to Congress of the White House to take and pass a course on economic concepts and principles. 

This might at least give them a fighting chance to put forth sound economic policies. Lord knows that without such training we are stuck with an ever declining standard of living.

3) A recent article in Business Week looked at how much the Defense Department (DOD) paid for standard helicopter parts from Bell Helicopter. The article was based on work done by a DOD watchdog group. Their top line findings found that the Department of Defense in 2012 paid $13.4 million for 35 standard helicopter parts but should have only paid $4.4 million.

Their detailed findings included the following examples of overpayment:

• A sleeve spacer: paid $29.95 for each, should have paid $7.49, a 300% markup.
• An inner swash plate cap: paid $2,355.85 each, should have paid $412.12, a 472% markup.
• A shim: paid $237.51 each, should have paid $25.86, an 818% markup.
• Bevel gear: paid $8,123.50, should have paid $445.06, an amazing 1,725% markup.

The article contains other parts examples which are just as insane. It is these types of examples that prove:

1. Government is severely broken at the operational level.
2. It should be no surprise how the country got to almost $18 TILLION in debt given how out of control and wasteful government and political class spending is across all facets of government.
3. When Nancy Pelosi pathetically states there is nowhere to cut government spending, just give her these examples.

4) Speaking of wasting money, consider another recent article from Business Week. NASA will complete work on a $350 million tower to test rocket engines at the John C. Stennis Space Center in Mississippi. The 350 foot steel frame facility was built to test rockets that were going to send America back into space, to the moon, and possibly beyond under NASA’s Constellation program.

The sad news is that the tower will probably never be used since the program was terminated years ago. President Obama proposed ending the Constellation program back in 2010 but taxpayer money continued to be spent on the tower. $292 million had already been spent by that time but incredibly, another additional $57 million was spent on this relic since then.

Not surprisingly, Mississippi's two U.S. Senators have helped keep taxpayer money flowing to create jobs on a home state project that will never be used. Another reason why we have an $18 TRILLION national debt with nothing to show in return for our wasted investment. Think about it. For $350 million we have useless cement tower in Mississippi. If we had used that money logically, sanely, and unselfishly:

• How many homeless kids could have been fed in America?
• How many sick and ailing vets could have gotten the medical treatment they need and deserve?
• How many drug addicts could have gotten the treatment they need to kick the habit?
• How many unemployed Americans could have gotten job training aid to help them reenter the workforce?

Wasting hundreds of millions of dollars is bad enough. The lost opportunity to take care of those in need in this country is even a sadder commentary on the horrendous priorities of Washington’s political class.

That’s enough insanity for today. More to follow over the next few days as we continue to prove that we are being served by the worst set of politicians in the history of this country, hands down.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

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Please visit the following sites for freedom:

Term Limits Now: http://www.howmuchworsecoulditget.com
http://www.reason.com
http://www.cato.org
http://www.robertringer.com/
http://www.youtube.com/watch?v=08j0sYUOb5w