How the Federal Government Abuses Funds


The problem with the government is that it is run by politicians. And the problem with politicians is that they want to give away free stuff all the time. The problem with that is the free stuff the politicians are giving away costs money; our money. Taxpayer money. And the stuff the government buys and then gives away is typically not taken care of very well.

Here’s Cato with an example:

A recent New York Times article described the wretched management of New York City’s public housing. The main problem highlighted is a common one in government ownership: bureaucracies do not maintain their assets.

Governments build shiny new highways, rail systems, schools, parks, sidewalks, and other infrastructure, and then let the assets rapidly deteriorate. Politicians like to brag about the new projects they are spending money on, but they pay little attention to old facilities that are falling apart, except when the media shines a spotlight.

The federal government provides $7 billion in annual funding to public housing agencies. Such aid induces irresponsible local management. It should be zeroed out and states encouraged to privatize their public housing stock. See these studies on federal aid and public housing.

The federal government should not be in the business of providing housing. They have proven time and time again that even if something was their idea, and seemed super important at the time, the government will not maintain and take care of their assets.