Government Waste

Something incumbent Republicans and those who support them keep repeating is “there’s no such thing as a free lunch” in regards to healthcare reform and public college tuition. They are correct, nothing is actually free. These programs will be covered by our tax dollars, but not by increasing our taxes. There is a tremendous amount of government waste from the bloat of the military industrial complex to legacy programs that have continued in spite of being decades beyond obsolete. Citizens Against Government Waste (CAGW) has published their annual Prime Cuts report reviewing 2016 waste.

I do not agree with all of the programs they have highlighted to get rid of completely. Many of the issues plaguing some programs can be resolved with regular auditing and hold administrators and others accountable for their budgets and efficiency. Below I am going to summarize the segments I agree with and how much money will be saved by eliminating these specific items by agency.

Agriculture

The sugar subsidy: yes, you read that correctly, there is a sugar subsidy. To summarize CAGW’s report, the United States has a mess of tariffs, import quotas, loans, etc., to prop up the sugar price to be around double the global price. This means everything that contains sugar that is bought has an automatically inflated price at market. According to CAGW, Americans pay $3.5 Billion dollars in inflated prices per year. Eliminating this subsidy will save $1.2 billion per year or $6 billion over 5 years per the CAGW report. Market Access Program: first of all, what is it? Below is the description by CAGW.

Formerly known as the Market Promotion Program, MAP is one of the federal government’s most blatant examples of corporate welfare. Over the past decade, MAP has provided nearly $2 billion in taxpayer money to help agriculture trade associations, farmer cooperatives, and individual companies advertise their products overseas. Previous beneficiaries have included successful companies such as Blue Diamond, Sunkist, Tyson, and Welch Foods.

As you can see by the names listed in the description, these are some very deep pocketed lobbying companies. Multiple attempts to cut this program have been unsuccessful due to lobbying. CAGW estimates eliminating this program will save $200 million a year and $1 billion over 5 years.

There are other programs in Agriculture the CAGW slated to cut, however I believe there are better methods to bring costs under control than outright cutting those programs. By cutting the 2 programs listed above, $1.3 billion can be saved and re-appropriated each year to Medicare for All healthcare, tuition free higher education, and guaranteed basic income programs.

Commerce Hollings Manufacturing Extension Partnership subsidizes consultant services for the manufacturing industry. Manufacturers pay a reduced cost for these services because the taxpayers pick up the difference. CAGW states eliminating this corporate welfare for consultants will save $143 million a year and $715 million over 5 years.

Defense I am in utter disbelief that CAGW only found 1 DoD project to be wasteful, but that is likely because the DoD itself has labeled it as waste. Congress has been funding the M1 Abrams tank retro fit to the M12A SEP variant for several years even though the Army Chief of Staff General Raymond Odierno has stated that the tank was only effective in conventional warfare that we will not be facing again. Eliminating this this expenditure will save the taxpayers $40 million annually and $200 million over 5 years.

Energy Selling the Southeastern Power Administration and its related assets. Alaska sold its power administration to the private sector in 1996. The Southeastern Power Administration subsidized electricity rates in certain communities, but it’s not geared to low-income communities. According to the Congressional Budget Office, CAGW states the communities receiving the subsidies are similar in make up as those not getting subsidies. Also, the subsidies are not substantial to actual bill reduction. CAGW’s report cites the Government Accountability Office showing electric bills will go up between $1 and $8 per month by ending this practice. First year savings will be $0, but 5 year savings are estimated at $1.2 billion. Sell and privatize the Tennessee Valley Authority and its non-power functions. The TVA was established in 1933 to get electricity to unserved rural southern communities. Since then, it has also promoted use of federal land and waterways for recreational use and run a national fertilizer research program. According to the CAGW report, these functions can be done more efficiently in the private sector for similar consumer electric rates saving $5 in year 1 and $1.1 billion in 5 years. Treasury The benefits of Replacing the $1 bill with the $1 coin have been well documented. Bills have a lifespan of about 21 months and coins have lifespans of about 30 years. According to the CAGW’s report, the bill costs approximately 4.2 cents each and the coins cost between 12 and 20 cents each to produce. The GAO as stated on multiple occasions that switching to $1 coins would provide a net savings of hundreds of millions of dollars annually and coins are more difficult to counterfeit. Annual savings of $146 million and 5 year savings of $730 million. As I stated at the beginning of this post, I only wrote the cuts I actually agree with. The CAGW report is much longer and covers many more cuts that look like a Paul Ryan and Mitch McConnell wet dream buffet.