How would that work exactly, an efficiency commission? In the business world, when the system is open and monopolies aren’t gumming up the flow of things, new entrants keep prices lean by undercutting the legacy companies, while maintaining a high enough price so as not to go bust. This tension is how people trust that they are paying a competitive price.
When groups or governments come up with pledges to jointly pay for goods and services, the obligation to purchase distorts a more fluid and flexible exchange. It also can set up a fictitious demand, as in the Feeding our Future Fraud case. The knowledge that the funds would arrive gave a financial incentive to fabricate the hungry kids who demanded the meals.
Another inefficiency appears in the form of joint missions, also known as mission creep. For instance, a government acquires a property in poor condition. Instead of bringing it up to the standard that most of the nearby residents would do if it were their home, the government entity goes over and above, not by a little but perhaps by three times the expense of average expectations. “Because it is the right thing to do.”
There are two counting mechanisms that could help an efficiency commission discuss examples such as these. The first is to count the population of the end recipients or receivers of service. A simple demographic count of the kids meant to be served would have immiediately revealed the fraud that led to the theft of $250 million from Federal subsidies. The state demographer has those numbers. It’s not hard to add.
The second example requires a comparison to the average typical repair for the area. Many home repairs and services vary in price. Should a homeowner go with the highest efficiency model, or is 80% high enough? It seems that the likely answer lies with the community of like-minded folks and not the bureaucrat. Wouldn’t it make most sense to spend the money in the fashion that a conscientious owner in the neighborhood would choose to do? After all, they’ve gone through the scheme of pricing and comparing.
Those in charge of public dollars should be vigilant to avoid being taken for a ride, as well as in line with the spending expectations of their constituents.
Home Economics 