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Fraud and Waste in Federal Government

Over the summer I got in many debates with liberals who supported the government's plan to nationalize the healthcare system. One of the most frequent pieces of evidence cited to support their argument was that currently there is a lot of waste and fraud in the system, and that when the federal government runs your insurance plan, that will all be eliminated. Because the government will run such an efficient system with no waste and fraud, these liberals would argue, it will be able to provide quality insurance to high risk individuals who never paid a dime into the system.

When faced with this logic, I would laugh, and question the assumption that the government will have less fraud and waste than private companies, especially the dramatically less rates needed to fund the magic system of to each according to their needs that liberals are promising.

This week my logic is reinforced by two points. First, the U.S. Office of Budget and Management this week announced that taxpayers lost at least $98 billion through waste and fraud in fiscal year 2009. That’s up $26 billion from last year. The Medicare and Medicaid programs counted for more than half the total—about $54.2 billion. Most of that went out for erroneous payments and outright fraud. With the massive power of the federal government supporting every move, the government still lost AT LEAST $98 billion, and I bet you that the number is much much higher than that in reality (a lot of what a liberal auditing private companies would call 'waste and fraud' is not counted when it is the government doing it). Oh, and amount of waste and fraud is not going down after the election of 'make government more efficient' and 'get rid of the special interests' Barack Obama to President- it is going up, almost as if Obama is doing the exact opposite of everything he promised to do and yet exactly the stuff I predicted he would do.

The other interesting story this week is that the according to the best and the brightest people in our nation's government, publishing official statistics meant to demonstrate the competence and transparency of the best that government has to offer, over $6.4 billion in stimulus money had been spent in hundreds of nonexistent congressional districts. That's right, the federal government 'created and saved jobs' and spent stimulus money in districts that don't exist (like Puerto Rico's 99th Congressional District). Joe Biden says it isn't a big deal- that the numbers the government published were totally made up and had no basis in reality, so don't get upset about it. But that doesn't comfort me and demonstrate to me that government can run a more efficient, less corrupt, less fraudulent, and less wasteful operation than private industry.

The very foundations of this healthcare bill are called into question every day using logic and common sense, and to be perfectly honest, it doesn't matter. The bill that the Democrats are producing could be proved to do everything that conservatives say it is going to do, and Democrats and Obama would still support it. Because its intent is not to make health care costs go down (in fact, it will make them go up) and it is not to cover more people (most people will lose coverage under their old plans), but the whole point of this healthcare bill is to expand the government power over your life. They want to control your life. They want to control your liberty. And they want to control your property. Government is, as it has always been, the biggest threat to your natural god-given rights, and we can see that today in the Obama administration backed by Democratic Congressman.

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