Wednesday, January 15, 2014

A disproportionate slice of the pie (Greed part 3)

We all know the stories of the businessmen who cut corners to make their product cheaper yet more dangerous, the lawmakers who take bribes so a corporation can save a little money in taxes, or the vast waste in our government and military.  These stories of corruption and greed bombard us daily through our newspapers, while we peruse the internet or when we are catching up on the news.  The strangest thing about all of these similar stories is that, even though every story outlines the same message of corrupt individuals placing their personal interests ahead of everyone else, we rarely ever read about anything being done.

I have a buddy working as a civilian contractor for the Air Force up in Alaska who loves to share stories about the wanton waste he sees around the base.  Amongst all of the sickening stories of excess and corruption, one sticks out in my mind.

As you may already know, the military is one of the biggest purveyors of waste known to Americans.  And, sadly, the way the system is set up almost begs for corruption.  You see, every year each unit is given a set budget.  This budget is based loosely upon what the unit has needed in the past, but the numbers are always inflated, "just in case something comes up".  The commanding officer can do whatever they set fit with this money with very few checks and balances.  However, there is always one things in the back of their mind; you see, at the end of the year, if there is any money left over, the excess is absorbed and the difference is reduced from their overall budget for future years.

I am sure you can see the issue.

The story (100% true story mind you) is told of a CO realizing that he was, towards the end of the fiscal year, around $500,000 in the black.  That's no good...  Knowing that he had to do something with the excess or else have it taken from his unit forever he got the brilliant idea of putting a $500,000 A/C unit in DECEMBER into an ALASKAN Air Force building that was knowingly being TORN DOWN 6 months later.  Problem solved...

Can you imagine what could be done in ANY school district with $500,000?

Why is this allowed?  How in the world is that person not held responsible for wasting a half a million of the taxpayers dollars?  Better question, why is the system so screwed?  Would it not be just as easy to give each unit a standard operating budget (figure out what their costs are and adjust for inflation and growth) and, if they need more, set up a grant proposal system.  This way, not only is every project actually forced to be outlined as necessary, but this system would limit waste.

Sure, this system would still allow for the greedy out there to abuse it, but there are always going to be those who want more than their slice of the pie and who would easily lie in these grants.  But I wonder, why is it so difficult to go out and check on each project once it is finished?  If you see a $50,000 gold toilet bowl or fish tank, hold the CO responsible.  If you audit and find that not all of the money is accounted for, figure out where it went and go after that individual.  Seems simple enough.

The problem of course is two fold:  1) It is almost too easy these days to get away with stealing.  It's almost as if the system is set up to fail.  OH wait... and 2) So many of those who are doing the auditing and checking are themselves corrupt.  How many times have you heard a story of an inspector taking a bribe, or an official looking the other way for a buddy?

It has been pointed out to me that I have an idealist mindset, that finding waste will not necessarily lead to an alleviation of the problem.  As I see it, this is exactly what those in charge want us to believe.  That, if we think nothing can ever be done, then we will give up trying.

Talk about a perfect cover.

As I see it, if, as you find this waste, you research and find those truly in charge (not the scapegoats used to hide the true culprit) and punish them with charges that befit the crime, things will change.  If someone is in charge of a project and it fails, hold them responsible.  It something goes missing or something is done incorrectly, find out the source of the cause and the person in charge and hold them responsible.  Why is this not done with higher ups?

It is the same with so many construction projects.  When was the last time you heard of a project finishing under budget?  Yet, you always hear about overruns.  I have heard the argument that it is cost of materials, failure to see this problem or that problem, but I have a difficult time fully understanding why this is the consumer's problem.  In fact, it seems like a system rife with corruption.  Lowball a bid, get midway through construction, then raise your fee.

Economists are always talking about a need to create job, there is, to me, a simple solution.  If you need jobs, create auditors (for both tax evasion and those abusing the welfare systems) and use these workers to find those who abuse the system.  People need to be held accountable for their actions, good and bad, and rewarded or punished based upon what was done.  This system needs to be equitable across all classes of society.

Of course, I am altruist.  I believe that everyone does indeed deserve a chance.  I believe that we can learn a lot about a person from this chance and that giving everyone a fair chance will make the world a better place.

I am also a realist, I know that it will take a LOT of work to arrive at this place and that there are many, many obstacles in place to ensure that exactly this does not happen.  Again, why give up power when you don't have to?  Why change a system that you control and can abuse?  Well, again, it comes down to those of us who are on the other side of that coin.  We are in charge of creating change.  Without us, corruption and greed will forever persist.

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