The Seven Rules of Bureaucracy
Mises Daily: Friday, March 23, 2012 by Loyd S. Pettegrew and Carol A. Vance Harry E. Teasley Jr One of Wolfman Jack's favorite tongue-in-cheek commercials, delivered in his raspy voice, went like this: "You say ya kids ain't got no clothes, ya ain't got no food in the frigerator — THEN BUY YOURSELF A COLOR TV BABY!" This facetious admonition, spending way beyond ones means, is exactly how government at the federal, state, and local levels have been behaving over the past 50 years. Even worse, government at all levels has been enabling Americans to do the same. Gone are the days when both the people and their government lived within their means. With 44 percent of households receiving some form of federal subsidy and the majority of Americans not paying any taxes, our country is now more the land of entitlements than the land of opportunity (Boskin, 2011; Heritage Foundation Report, 2011). With the current challenge of reducing the runaway government spending and an entitlement mentality by citizens, it is quite possible to trim $4 trillion by reining in just our federal bureaucracy. Thomas Sowell suggested that to do so, we must further examine and challenge the giant economic leviathan of our government bureaucracy. The Office of Management and Budget revealed that the executive branch of our federal government grew by 23 percent since President Obama took office. The Wall Street Journal (2012) opined that the president has "presided over the largest expansion of government since LBJ — health care, financial regulation," and in so doing has spent 24 percent of our nation's GDP. Unfortunately, both taxpayers and the media get social amnesia, seldom holding bureaucrats' feet to the fire when programs they created fail or simply don't do what they were designed to do. Sowell (1995, p. 257) reveals part of this problem in The Vision of the Anointed: When the government creates some new program, nothing is easier than to show whatever benefits that program produces.… But it is virtually impossible to trace the taxes that paid for the program back to their sources and to show the alternative uses of that same money that could have been far more beneficial. Even worse, bureaucrats and their supporters are loath to admit when their programs have harmful consequences and are inclined to double-down on a failing policy once it has proven its worthlessness. The classic example is Representative Barney Frank who as recently as 2009 announced that he was planning to introduce legislation that would increase the FHA loan ceiling by an additional $100,000 to $839,750 (New York Times, 2009). Bureaucracy: A Root Evil In order to understand the foundation of America's morass, we must examine bureaucracy. At the root of this growing evil is the very nature of bureaucracy, especially political bureaucracy. French economist Frédéric Bastiat offered an early warning in 1850 that laws, institutions, and acts — the stuff of political bureaucracy — produce economic effects that can be seen
while good economists are able to look at the immediate effects and foresee effects. One of the truisms of bureaucracies. 1944). Max Weber. and they consider bureaucracy not an instrument of democratic government but. and the great question is therefore not how we can promote and hasten it. and less manageable over time. they will grow bigger. is credited with formalizing the elements of bureaucracy as a fundamental principle of organization. Teasley concludes that the free market has historically done a better job of distributing benefits justly and adjusting to any unintended consequences efficiently and effectively. it has not been attempted. 44) Harry Teasley warns us that US history is full of examples of government bureaucracy arbitrarily passing out benefits and. bolder. Teasley has seen this happen over and over again and put his considerable intellect to how its apparatus works. We argue that knowing these rules can help Americans set a course
. solutions to the bureaucratic leviathan. the grounds for which started with the Fair Housing Act and government underwriting of Fannie Mae and Freddie Mac. He warned. That the world should know not me but these: it is in such an evolution that we are already caught up. He claimed that bad economists look only at the immediate. Despite the concept being nearly 20 years old. p. He has also fought governmental bureaucracies successfully. Harry Teasley has spent his life confronting bureaucracy. unforeseen effects happen much later. yet ignored. is that if left to their own devices. that come later. the problem lies in the very rules that underpin bureaucracies. from this supreme mastery of the bureaucratic way of life. considered the father of modern bureaucracy largely in response to the Industrial Revolution. He was also painfully aware of the arbitrariness of bureaucratic decision processes. overriding and sometimes punishing the free market. asked if Americans should give away their individual freedom and private initiative for the guardianship of the bureaucratic state. on the contrary. Baden (1993) puts the problem at the feet of politicians concentrating benefits and dispersing costs and believes "predatory bureaucracies" would allow bureaucracies to feed on themselves with the most effective and efficient bureaucracy taking money and responsibility away from those that are less efficient and effective. (Mises. Only in recent years have people become aware of the menace of bureaucracy. both good and bad. be they government or private sector. the worst enemy of freedom and democracy. America is an old democracy and the talk about the dangers of bureaucracy is a new phenomenon in this country. While a provocative theory. 2009). in the preface to his 1944 edition of Bureaucracy. let alone enacted in any meaningful or widespread way. John Baden has offered us one of the most promising. he trumped his abiding commitment to bureaucracy with a decided uneasiness of its adoption by government and universities (Mayer. in so doing. seeable effects and ignore effects that come later. In a speech he gave to the German Association for Social Policy in 1909. Congress decided to punish banks and further regulate them to make risky mortgage loans in the name of social justice (see Sowell's The Housing Boom and Bust. Free-market economists have challenged government bureaucracies since the 1920s. Ludwig von Mises. This has given him superb insight into the dynamics that give rise and cover to bureaucracies. 1944. Both the seen and the unseen have become a necessary condition of modern bureaucracy. but what we can oppose to this machinery in order to keep a portion of mankind free from the parceling-out of the soul. The perfect example of this is the recent housing bubble. Yet amid the chaos of the ensuing financial meltdown. but that other.immediately.
This was a coordination of counterterrorism and drug interdiction forces. on new government programs and employees. once started. state. Any fifth-grader can see that there hasn't been much progress on the poverty front. It also allows bureaucrats to spend lavishly and. Bureaucrats feign trying to fix problems while usually making them worse. the College Work Study Program (CWSP). This led to an explosion of poverty programs including the Economic Opportunity Act. With this war came the creation of the Drug Enforcement Administration (DEA). Not surprisingly. the Office of Economic Opportunity (OEO). Political careers have been made by bureaucrats promising to fix problems. Volunteers in Service to America (VISTA). privilege. The War on Drugs President Richard Nixon declared the war on drugs in 1971 to support the Comprehensive Drug Abuse Prevention and Control Act of 1970. the Community Action Program (CAP). the Office of National Drug Control Policy (ONDCP) and its head bureaucrat the Drug Czar. privileges.1 percent. and security. Bush began pushing for the involvement of the US military and CIA in drug interdiction. are the basis of bureaucratic power. the Neighborhood Youth Corps. Texas A&M economics professor Edgar K. Head Start. In politics. the poverty rate was 15 percent and in 2010 it was 15.away from statism and political service as a profession and career. the Treasury and General Government Appropriations Act of 1998 and the Drug Free Media Campaign Act the same year. the National Youth Anti-Drug Media Campaign. and local government programs comprise the legions in this war. This war has also spawned drug-enforcement divisions in most police departments across the United States. and lead our country back to fiscal solvency and exceptionalism through dismantling bureaucracy. Browning estimates that 80 targeted federal. the year this "war" began. US Census figures show that in 1964. Legal Services.
. and nearly three decades later. the Job Corps. the more resources must be devoted to it. Upward Bound. most of these programs have never gone away and demand an ever-increasing amount of taxpayer dollars. The War on Poverty In 1964 President Lyndon Johnson declared the war on poverty. In 1982 Vice President George H. Teasley correctly points out that problems. not solutions. perks. This is because maintaining the problem creates constituent dependency and allows the bureaucrat to show tangible evidence that he or she is working hard for constituents and their cause. As recently as 2009 the National Southwest Border Counternarcotics Strategy was announced by Homeland Security Chief Janet Napolitano. and political security. seemingly endlessly. especially given the trillions of dollars spent since then. and recently the new White House Office of Urban Affairs. The apparatus grows larger while the problem grows worse. Examining the three "wars against" created by politicians in the last 50 years provides ample illustration of rule #1. the tougher the problem appears. perks. Rules of Bureaucracy Rule #1: Maintain the problem at all costs! The problem is the basis of power.
the president's war-on-drugs budget increased by $1. Numerous terrorist attacks had been executed on US sovereign interests before September 11. state and federal bureaucracy and the attendant king's ransom of taxpayer dollars that feed it. The National Institute of Drug Abuse reports that among 8th-. Scotland. drink alcohol. and 12th-graders. (US No Drugs. 2008) Rule #2: Use crisis and perceived crisis to increase your power and control. Americans should expect a reasonable return on their tax dollar. (Substance Abuse and Mental Health Administration. housing the 4404th wing of the US Air Force in Saudi Arabia." The unintended consequences of the war on drugs have been far worse.6 million — a significantly higher number of individuals in need of professional help than had been previously thought. most who need treatment fail to recognize they have a drug abuse problem. Despite the expanding price tag. 2001. Articles in the Economist (April 16.Like many wars the nation fights. but only the latest. costly. and the 1988 Pan Am flight 103 over Lockerbie. the 1998 US embassy bombing in Kenya. and current illicit drug use remained unchanged during the last decade. creating market wealth for the producers and smugglers that has attracted international terrorists and compromised the US war on terror. in a series of crises that have been used to increase government power and control. the 1993 World Trade Center bombing in New York City. 2012) conclude that the US war on drugs has thrown all of Latin America into the cartel drugproduction and smuggling enterprise. the 1995 Oklahoma City bombing of a federal building. America today is no less ravaged by drug trafficking and drug use despite more than a trillion dollars our government has spent waging this war. Through US drug-interdiction efforts. Between 2008 and 2012. For this extraordinary increase in local. snort cocaine and swallow prescription drugs. according to government estimates. 114 million Americans — 46 percent of the US population over the age of 12 — reported having used illegal drugs at least once in their lifetime and about one-third of these individuals (36 million Americans) reported having used illegal drugs during the previous year. But yet another federal drug agency says otherwise: In 2007. 2009) The growing cost of fighting the US war on drugs amid mounting evidence of its ineffectiveness can be seen by tracking the recent annual budget increases. On the home front. The results of the 2001 National Household Survey on Drug Abuse and Addiction revealed that. increasing drug production and smuggling into this country and elsewhere around the world. These include but are not limited to the 2000 USS Cole attack. and ineffective. the 1996 Kobar Towers bombing. past-year.7 billion (Office of National Drug Policy. The 2001 World Trade Center attack is the quintessential. 2012). the war on drugs has been long term.
. the cost of naturally growing weeds (marijuana and opium poppies for example) has risen spectacularly. lifetime. while millions of Americans habitually smoke pot. 2011) and the Wall Street Journal (January 14. The figure of those "in denial" of their drug abuse is estimated at more than 4. the National Institute for Drug Abuse concluded. 10th-. "The decline in illicit drug use by the Nation's adolescents since the mid to late-1990s has leveled off.
the Patriot Act was quickly signed into law by President George W. and Bureaucracies. we were once traveling from my home in Tampa. Muslims point to the fact that the Patriot Act diminishes one's Fourth Amendment rights against unlawful search and seizure and also directly abridges amendments 5. The Department of Homeland Security is a new and expensive federal bureaucracy that increases the government's right to search airline passengers and their luggage. physically pat them down and confiscate items they believe may be hazardous. Rule 2a. Even with the influence from a new president who criticized the Patriot Act during his election campaign. As a personal note. 6. the fact that approximately 12 to 32 million Americans. to California. even from nature. L. to spend a trillion dollars on universal health coverage that the majority of Americans didn't want or need.a. the Antiterrorism and Effective Death Penalty Act of 1996. 2011). A TSA agent spotted the insulin pump I was wearing on my belt and called for a complete screening including swabbing my pump and my hands for traces of explosive. 2001.k. depending on whose numbers were believed. 104–132. 110 Stat. By all accounts of the legislative process. both well-studied and acknowledged crises. Travelers have no right to protest or to have a higher level of authority review a TSA decision. were without healthcare coverage was turned into a crisis that the US Congress rushed in to fix. Rule #3: If there are not enough crises. and frisked me. Bureaucracies are always on the lookout for a new crisis. driving up the cost of healthcare and creating enough ambiguity among small-business owners to ensure any job creation is stifled. having only minor opposition by Congress.On the heels of the first World Trade Center bombing. In his "Guiding Principles of Politicians. 1214 (a. 2004). hand searched everything in my carryon bag. the law of the land remains securely in place. Bush and abridges US citizens' constitutional rights with little judicial review if you are suspected of terrorist activities or even of providing "material support" to terrorist groups. and limit the opposition's opportunity to review and critique. Bureaucrats. and 8 (Ghazali. few if any members of Congress had fully read the bill before being forced to vote it into law. where none exist. It turns out that emergency rooms across the United States treat a great many of these people when sick. whether or not they have any links to terrorism. manufacture them. The unintended consequences of this action are a flawed piece of legislation that several federal courts have struck down as unconstitutional. Little if any attention was given to the fact that millions of Americans didn't have health insurance when they could afford it simply because they chose not to purchase it ( Wall Street Journal. as does the prison in Guantanamo Bay. On October 26. Congress and President Obama chose to ignore the pending collapse of Social Security and Medicare. another TSA agent quietly apologized and told me that no other agent has authority to stop a TSA agent if he or she wants to execute a detailed and time-consuming search of a passenger. Its effects on the economic recovery were harshly negative." Harry Teasley points to three examples:
. Florida. In the first year of the Obama presidency. threaten the loss of options and opportunities. No. Force 11th-hour decisions. AEDPA) was passed by a substantial majority of Congress and signed into law by President Bill Clinton. Pub. When he was finished.
allowing President Johnson to deploy conventional military forces to Vietnam without congressional approval. 2011). We are still in the throes of discovering the effects of the third crisis. 2. never explicitly defined. growing in size and power as a regulatory agency with all the prosecutorial powers to fine and even imprison violators (and the latitude to ignore violations as fits their interest). The EPA has also teamed up with the Justice Department and Fish & Wildlife in prosecuting musical-instrument manufacturers and musicians deemed to have endangered hardwoods in their instruments. Like political correctness. The attribution of weapons of mass destruction (WMDs) to Saddam Hussein permitted President George Bush to invade Iraq (again.… And so unfortunately you get technologies that. where an alleged attack took place on two US naval destroyers by a North Vietnamese torpedo boat. It's cute you know.
. and people turn their air conditioners on during the day. makers of classic instruments. James Taranto (2011) points to a "Diversity bureaucracy" that state universities continue to populate when teachers are laid off. no matter how much of them you buy. We do know that under President Obama the power of the EPA is at a zenith. so far from making sense. so you can catch some of that peaking load. Once crises are created. Ebony Wood in Various Forms" (Felten. The first two resulted in loss of life and a terrible toll of people maimed and injured. Musicians who play older instruments that used such hardwoods before it was illegal can no longer safely take their instruments across US borders without "adequate" documentation and hope to return with the instruments back in to the United States without Customs agents seizing their instruments and fining or even imprisoning them. The EPA has enlisted US Customs to enforce problematic environmental policy. because they bring greater monetary reward). etc. international students (particularly graduate students. The Gulf of Tonkin incident. You know the sun shines during the day. there's no path to being economical. 3. gays. after which no WMDs were found. Man-made global warming. On campuses these days we must spend scarce resources on glorifying the transgendered. and there is now a criminal case. lesbians. Diversity is another example of creating a social crisis where none had existed. Alternative and renewable fuels have become a lightning rod for the EPA. Gibson Guitars. "United States of America v. has been singled out in federal raids. Bill Gates was quoted recently in the Wall Street Journal as saying this about EPA solar-energy subsidies: I think people deeply underestimate what a huge problem this day-night issue is if you're trying to design an energy system involving solar technology that's more than just a hobby. diversity has become a primary orthodoxy and a perpetual goal of government that simply cannot be achieved. But the economics are so. No matter how much progress is made. haunts government bureaucracies particularly. particularly if you get enough subsidies. without the need of congressional approval). and bisexuals. they become self-sustaining.1. it's nice. Muslims. The ongoing need for diversity. there are new groups that emerge representing the nation's continued failure to embrace the crisis of diversity.
across a wide array of metrics. Heather Mac Donald reported in the City Journal how an entrenched gender bureaucracy in the University of California system has grown despite the majority of students being female: California's budget crisis has reduced the University of California to near-penury. the graduate diversity coordinators. the government has allowed diversity to be whatever bureaucrats want it to be. not exactly to the bone. A series of New York Times articles documents that on college campuses." "public communication & liaison. the staff diversity liaison. Rule #4: Control the flow and release of information while feigning openness. Every academic department and school had to produce a report from which cuts would be made that would allegedly save the university and state money. Culture and Inclusion. female gender issues remain an imbedded hallmark of diversity worthy of sizable resource expenditure. The president and provost quickly ignored the need to cut academic programs based on their performance and the two programs were retained. the president and provost of our university created a committee to look for ways to pare their academic budget. and the Women's Center. Instead you have "public affairs. the Lesbian Gay Bisexual Transgender Resource Center. The bottom line is that government bureaucracies don't want people to think that they are controlling the spin and flow of
. and the directors of the Cross-Cultural Center. the Office of Academic Diversity and Equal Opportunity." This position would augment UC San Diego's already massive diversity apparatus. Ironically. It is telling that the term public relations is not used in government bureaucracies. This is not to say that governmental bureaucracies don't engage in public influence. the associate vice chancellor for faculty equity. the Committee on Gender Identity and Sexual Orientation Issues. "Our campuses and the UC Office of the President have cut to the bone. 1999). The American Association of Medical Colleges reported that more than 20 years ago. which includes the Chancellor's Diversity Office. but often escape accountability. the assistant vice chancellor for diversity." "public information. by 2007 women represented 79 percent of the students in American schools of veterinary medicine and the Journal of Accountancy (2011) reported that half of both undergraduate and masters students in accountancy were women. the number of women equaled the number of men in America's 40 medical schools (AAMC. The lowest-scoring academic departments by these performance data." and "public engagement" to duck public criticism of their information-control efforts. the chief diversity officer. the director of development for diversity initiatives. the diversity crisis is perpetuated. Race and gender not only continue to flourish at public universities. no matter what the costs.Despite monumental gains in the status of women and minorities in what has always been a diverse nation. and inclusion. According to a story in the Boston Globe (2007).… The University of California at San Diego. diversity. the undergraduate student diversity liaison. During the height of the 2000 recession. the Committee on the Status of Women. they spend huge sums of money at all levels trying to persuade the public and media that they aren't persuading them. the Campus Council on Climate. the graduate student diversity liaison. were Women's Studies and Africana Studies. it's just that they don't want to be seen as doing so. the Diversity Council. for example is creating a new full-time "vice chancellor for equity. the faculty equity advisors. where women outnumber men by 57 percent to 43 percent. provided by their own faculty. claimed its spokesmen.…" Well. Despite the rise of women to now be the dominant gender in most professional schools.
the government's Bureau of Labor Statistics continued to release optimistic monthly reports that would subsequently prove to be wrong. 1985). spin. Another example of government information control comes from the economic recession that began in 2007. also spoke to the American people as well as Congress and his cabinet and said. is ignored by the president. It is a testament to information control that Operation Desert Storm received rave media reviews and that Operation Iraqi Freedom. "I am not a crook. The U-6 unemployment rate is currently 16 percent. There are two classic examples of this rule. Rule 4a: Deny. six top-level administration officials were indicted and sent to prison. the government strategically leaked a CIA report from 2002 that strongly presented the idea that Iraq did have WMDs (see CIA). When the press called for the president's ouster after the Republican break-in to the Democratic Party's offices at the Watergate Hotel was confirmed by W. or people who have been out of work for five months or more. delay. What many people don't know is that government methods of data gathering are skewed to be much more positive that they ever are. Since then. U-6. obfuscate. President Nixon came on national television and uttered the now famous. and the media in favor of the rate presented monthly. Secretary of Defense Donald Rumsfeld held multiple press conferences about the invasion and reported WMDs where he would routinely begin by stating the question and then answering it before the press had a chance to probe further. whose administration had honed the fine art of spin doctoring into a science. One of the best examples of controlling information surrounds the information on Iraq's alleged weapons of mass destruction (WMD) that was strategically released just before the United States and its allies invaded Iraq. During the Vietnam War. had mostly positive news until the war began to drag on and warriors from other Middle Eastern countries began using terrorist tactics. Feeling the need to create widespread support for the invasion. employed persons are anybody 16 years of age or older who did any work for pay or profit during the survey week and all persons who did at least 15 hours of work in a family-owned enterprise operated by someone in their household.information. and lie. Unemployment data from the Bureau of Labor Statistics (2012) do not include retirees reentering the workforce. "I did not have sexual
. It is instructive that the Department of Labor's little-known measure of unemployment. Mark Felt ("Deep Throat"). war correspondents brought death and destruction to television screens every night and kindled immense negative public opposition (see Meyrowitz." In all. While this was going on. new college graduates looking for a job. For example. despite its questionable validity. nondeployed military personnel. As employment continued to decline. instead of persuasive. Bill Clinton. While President Obama certainly inherited the recession from President Bush. his administration's efforts to control the information about it and our progress through it are instructive. led by the US military and their public-relations staff. so the appearance is all about giving the public the information they want and need and making it sound benign. The first was from the Nixon administration during the Watergate scandal. Congress. the government has been strategically engaged in efforts to co-opt the media by organizing carefully controlled combat sorties.
Over the 33 years it has been in existence. (6) the national defense. most of Clinton's cabinet resigned (presumably for having been lied to by the president). He forgot to mention the actuarial fiscal liabilities of this law. and especially when dealing with the press. the long-range unfunded cost projections of the Medicare Part D mandate is $7. Bureaucrats have become skilled at using the "helping the people" angle when making speeches. The Community Reinvestment Act of 1977. and the Departments of Justice
. (5) the homeless. Sowell points out in his book The Quest for Cosmic Justicethat all justice is. Lying. or (8) the sick. Rule #5: Maximize public-relations exposure by creating a cover story that appeals to the universal need to help people. It is so pervasive that your child can even pursue a major in social justice at institutions of higher learning like the University of California. no matter what its cost in money or personal liberties. Bush claimed the Medicare Part D pharmaceutical supplement he signed into law was the greatest advance in health care coverage for America's seniors since the founding of Medicare. and spinning are all tools of the accomplished bureaucrat who is caught doing something wrong. (7) homeland security. its force has grown the size and reach of the Federal Housing Administration." it is important to first look behind the curtain." After DNA evidence was presented by Miss Lewinsky to the federal prosecutor. It is a variation of the "people angle" taught in media relations training programs as the best method to attract media attention and promotion. we're giving older Americans better choices and more control over their health care. Government bureaucracy is honed on populist rhetoric. When bureaucrats of any ilk promote their new law or program as being "for the people. Miss Lewinsky. Santa Barbara. signed into law by President Carter. From the 2009 Financial Report of the United States Government. can be sold through the media by claiming it is for (1) the children. CNN (2003) reported that George W. yet very few in the media or the public are inclined to look beneath the veneer of social justice to examine the costs and the unintended consequences.relations with that woman. (3) the elderly." Hillary Clinton stood by him and attributed the commotion to the "vast right-wing conspiracy. For example. (4) the poor. obfuscating. the Federal Reserve. (2) the environment. social. These reforms are the act of a vibrant and compassionate government. A cover story that seeks social justice or to right the wrongs of an unjust society is guaranteed media attention. With this law. by definition. the Federal Deposit Insurance Corporation. cheating. while distributing the costs broadly to one's political opponents. so they can receive the modern medical care they deserve.2 trillion. Rule #6: Create vested support groups by distributing concentrated benefits and/or entitlements to these special interests. established the federal government's role in providing affordable housing to the needy. and "social" is most often used in the populist sense of everyone but the wealthy. "Social justice" is the veneer used by bureaucrats to gain positive media exposure while pursuing the building of more bureaucracy. Almost any government program.
having received billions of tax dollars from more than 15 federal agencies over the past 50 years. It has received huge loan guarantees ($535 million) through the American Recovery and Reinvestment Act (itself a huge and expensive federal program to fix the mistakes of the Community Reinvestment Act) and the Federal Financing Bank. placed
. The poster child of corporate welfare is Archer Daniels Midland (ADM). one of three green-energy companies that received nearly $700 million in federal-government money and filed bankruptcy in the past two years. As Sowell (2009. These are the recipients of corporate welfare. Even more insidious are government laws that benefit for-profit corporations. yet many of its proponents and even the media failed to see or understand the real problem or the long-term costs and market dislocation that would result. As a testament to ADM's political ecumenicalism. were big financial supporters of the Obama presidential campaign as a bona fide for his "green" stand. The Wall Street Journal (2011) indicated that the company was also backed by the George Kaiser Family Foundation and. "affordable" became the ability for people to buy the home they wanted in the area they wanted and the government's role was to make it financially possible to purchase it. as well as being the beneficiary of federal and state policies mandating the use of renewable energy sources (US Department of Energy's ENERGY STAR Program and by the requirements of the California Title 24 Energy Standard. to return the favor to the federal bureaucracy. which attracts a large portion of the left-liberal minded. Our last example of Teasley's sixth rule of bureaucracy is Solyndra. it has been a long-time sponsor/advertiser of National Public Radio. The EPA is planning to issue an edict to allow 15 percent ethanol to be blended into gasoline. which prescribes cool roofs to be employed whenever low-slope commercial roofs are constructed or replaced). but the agreement with private investors. pp. along with its founder. While the initial goal was to provide the less economically advantaged with an opportunity to purchase a home. Solyndra is a photovoltaic-solar-energy-systems manufacturer in California. including Kaiser. 31–56) points out. Chip Krakoff (2011) quotes ADM's Dwayne Andreas as justifying his corporate welfare history: There isn't one grain of anything in the world that is sold in a free market. which will result in a 50 percent market gain for ADM's ethanol-production facilities and a similar market gain in the sale of their dominant field-corn holdings used to make ethanol. Not one! The only place you see a free market is in the speeches of politicians. ADM has also been funding reelection campaigns on both sides of the congressional aisle and for both Democratic and Republican presidential candidates. no one bothered to look at the possible unintended consequences of helping people whose personal credit wouldn't qualify them to buy a home. An additional $75 million loan was made to Solyndra. As James Bovard (1995) and Chip Krakoff (2011) point out. It has also given rise to the Federal National Mortgage Association ("Fannie Mae" and "Freddie Mac"). The Community Reinvestment Act ultimately led to the biggest financial crisis since the Great Depression.and Housing & Urban Development. People who are not in the Midwest do not understand that this is a socialist country.
Until the company announced its bankruptcy in August 2011. 2007. Congressman Barney Frank (head of the House Financial Services Committee) and Senator Dodd (head of the Senate Banking Committee). CNN (2005) reported that President Bush said during a Veteran's Day speech in Pennsylvania. Unlike previous examples we have had where substantial excessive inflation of prices later caused some problems. I think. and even President Bush frequently took critics to task. we are talking here about an entity. Frank implicated foreign central banks. (McDonald. In 2010 Mr. including Fannie Mae. but on the very notion that America has a right to give a primary focus to our own economic need for growth at this time. So those of us on our committee in particular will continue to push toward home ownership. home ownership. This is not the dot com situation. HUD. Most in Washington. Frank as saying." Rule #7: Demonize the truth tellers who have the temerity to say.them ahead of American taxpayers in case of default. administration officials dismissed these reports as "B. Some Democrats and anti-war critics are now claiming we manipulated the
. and Republican congressional leaders share the attack by these foreign banks not simply on the Federal Reserve's proposal. Obviously speculation is never a good thing. and George Kaiser to the White House between March 2009 and April 2010. More than 20 trips were made by company officials. homes. not only in America but around the world. President Obama had hailed the company as "leading the way toward a brighter and more prosperous future" (Ibid)." In the House of Representatives on June 25. railing against any warnings that Fannie and Freddie were in financial trouble.… Homes that are occupied may see an ebb and flow in the price at a certain percentage level but you're not going to see a collapse that you see when people talk about a bubble. Stephen Labaton (2003) of the New York Times quoted Mr." There were plenty of people sounding alarms as early as 2003 about the housing bubble and growing deficits that led directly to the devastating economic downturn that lingers today. where there is not the degree of leverage that we have seen elsewhere. particularly China. an excessive degree of concern right now about home ownership and its role in the economy. Donald Rumsfeld. and despite reports from industry insiders about Solyndra's financial health. During the invasion of Iraq. Vice President Dick Cheney. all refused to pay attention to the growing signs of the housing-market collapse and its risk to the US economy. But those who argue that housing prices are now at the point of a bubble seem to me to be missing a very important point. "The emperor has no clothes. "These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis.S. when attacking a letter written by Republican economists to the Federal Reserve for joining a broad attack by the foreign central banks who insist that America somehow must subordinate our own legitimate economic needs to their currency requirements. 2010) Of course. Freddie Mac. the Federal Reserve. Congressman Frank stated. investors. both political parties demonize the truth tellers who speak out against costly and wasteful policies and their unintended consequences. We have. asserting that there was "incontrovertible" evidence that Saddam Hussein had weapons of mass destruction. What did disappoint me was to see conservative economists. high-ranking officials of previous Republican administrations.
"Bureaucrat" should not be thought of as a career path. The Democratic and Republican parties will push back from this antidote in their faux political fight for power. 1. implying racism as the motive for the criticism: They get to take things out on poor people. asking where Americans can go from here is not a rhetorical question. especially when the reporting is false. Rangel held about the ethics violations. particularly politicians. Given an economy that is not responding to Keynesian stimulus. who attended a foreclosure symposium in Boston and challenged the critics of Fannie Mae. he responded about the possibility of being removed as chairman of the House Ways and Means Committee: "I don't see what purpose that would serve. Rangel said. I believe. "Gall was divided into three parts and politicians have all three of them." When asked specifically about nearly $80." We habitually find government bureaucrats. not saviors of this country. there are several solutions that we believe will make a difference and take the wind out of the sails of bureaucracy. We offer a series of antidotes to the scourge of bureaucracy. Glen Johnson (2008). crimes. to appeal to a kind of anger in people." Mr. This is an effort. Associate Press writer. Washington Post reporters Leoning & Kane (2010) reported that. my son and a great American. Rule 7a: Accuse the truth teller of one's own defects. and misdemeanors. he replied. trying to turn the tables of their accusers in misdeeds. proffered by an authoritarian administration and a market-corrupting federal bureaucracy. Let's be honest: The fact that some of the poor people are black doesn't hurt them either. History has proven that "career bureaucrats" do much more harm than good and we must characterize such people as pariahs and scallywags. a veteran. from their standpoint. after a news conference Mr.
. deficiencies. my friend. "It's one of the crummiest deviations from the truth that I've seen in these recent stories. quoted Congressman Barney Frank. "The reporter should really crawl from under his rock and apologize to my son." The Road Less Traveled from Here After presenting Teasley's rules of bureaucracy. While it's perfectly legitimate to criticize my decision or the conduct of the war.intelligence and misled the American people about why we went to war. They also know that intelligence agencies from around the world agreed with our assessment of Saddam Hussein. Knowing how to get things done in state capitols and in Washington is only an asset to law-making junkies and directly reflects the dark underbelly of the bureaucratic beast. Former representative Charles Rangel was ultimately accused of 13 ethics infractions by the House of Representatives. I don't think reporters should be in the position to remove chairmen. One wag said. not even temporarily.000 his son had received from his campaign to design a website. it is deeply irresponsible to rewrite the history of how that war began.
and how much it will cost. Third. As Bastiat warned us more that 150 years ago. political bureaucrats ignore who will be hurt by a new law. To stem the tide of fiscal irresponsibility leading to unsustainable government size and debt. an analysis of what we can do about a problem. a careful.
. Fourth. Personal health and education are splendid examples. Federal bureaucracy has grown at an alarming rate under Republican president George Bush and as much in just three years under Democratic president Barack Obama. America's bureaucracies have forgotten that resources are scarce. and it will reestablish our exceptionalism in a way that other first-world countries have been unable to do with their stifling bureaucracies and statist programs. including its importance to the economic competitiveness of our country. Sowell (1999) has long advocated that we use an economic analysis to examine our legislative initiativesbefore they become law. econometric analysis must be made of the possible long-term unintended consequences of proposed legislation. does America need Sarbanes-Oxley or Dodd-Frank legislation? While it may inflate bureaucrats' selfworth and hubris. the results of which must be presented to the American people before the vote. no bill should pass from committee to a full chamber vote without first being carefully analyzed by the Government Accountability Office using a four-step rubric. Addressing real problems while reducing government bureaucracies and entitlements will give the United States a new resourcefulness that can go a long way toward making the United States a decidedly freer market." we should fight it. an analysis of what we should do collectively as a nation and what should be left up to individual initiative. much of the federal legislation of the last two decades would never have been passed. Had our legislators done this.2. instead of trying to seize the political moment and the headlines. While legislators keep an informal scorecard with how many pieces of legislation bear their names. America must reduce the number of existing laws and agencies significantly. no matter what the war is against. Send all newly elected officials to the state capitol or Washington with the specific goal toreduce legislation. Second. a careful analysis must be undertaken of who will be helped and who will be hurt by any new legislation. and most legislation builds bigger government and demands more tax dollars. If Congress comes up with a new "war against. The federal government's track record is abysmal and the equivalent of a taxpayer boat — a hole in the water that you sink your money in. First. 3.