“Federal Government Spending Is a Leaky Bucket,” by Chris Edwards and Ryan Bourne, Cato Institute
Quote:
“People often hold optimistic views about federal government spending programs. They assume that new and expanded programs can fix the nation’s social and economic problems. The government is a powerful institution, and so people think that it can steer funding to individuals, businesses, and nonprofit groups to solve problems and aid those in need. However, solving problems through the federal government is not so simple. Spending programs require funding from taxation or borrowing, and both create collateral damage on the economy. As funds flow through the government, resources are wasted on bureaucracy, mismanagement, and faulty planning. As the remaining funds flow out of the government and into the private sector, they induce people to change their working and investing activities, further undermining the economy. Only a fraction of the tax dollars raised for programs ultimately delivers on the outcomes promised by policymakers.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
This excellent paper should be mandatory reading for the Pollyannaish researchers who insist a big new government entitlement is the answer to long-term care’s problems. Subject WA Cares to this withering analysis and you’ll get a preview of what is unfolding in the Evergreen State. How about the WISH Act? Think it’s exempt? Hardly. Rather, another case in point. Likewise, Medicaid LTC. The principles in this paper go a long way to explain how Medicaid ruined LTC services and financing. Here’s just one example of the Medicaid bucket’s many leaks: “Medicaid’s $100+ Billion Leak.” For more, read anything here.