Wednesday, April 20, 2011

Wanna Cut The Budget...........Here's Another Way

I just spent a couple of hours reading scholarly pieces about the failures of the Trade Adjustment Act as it was implemented through the mid 1980s.  This legislation was enacted to provide additional assistance to those who were laid off due to competition from foreign imports.  It involved a supplement to unemployment insurance, plus entitlement to certain retraining, job search expenses and relocation allowances.  Eligibility was based on an employer's petition being certified by the Department of Labor.

None of these pieces even remotely addressed how programs of this nature are truly wasteful and costly.  They focused on overall ineffectiveness, the union vs non-union participation rate, idiotic theories on how it negatively impacted free markets and competitiveness, etc, etc, etc. Nowhere did they think to mention one of the main (attributes) of this boondoggle - the bureaucratic nightmare it presented to those charged to implement it.  The avalanche of needless paperwork, forms, worker hours, reports and record keeping, time usage justification, frustration, diversion of limited staff and the other stuff that goes with it.

I was a youngster back then working in a relatively low level position for the state agency that handles payment of unemployment insurance and employment services.  State Employment and Training agencies are historically minimally staffed during normal times, but add great numbers of part time or temporary workers during recessionary periods bringing high unemployment.  By its nature, the newly hired are basically trained "on the job" to respond to increased immediate needs.  They try their best to learn their jobs quickly under supervision of permanent staff.

I worked in so-called local offices during three recessions when people's actual names were called to file for their new or continued UI claims.  Direct service given to unemployed individuals collecting benefits on a weekly or biweekly basis. "File the continued claims and get the benefit check a couple of days later in the mail" or initiate claims and get an award decision within three weeks.  It worked reasonably well for the straight stuff.

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Enter the seemingly innocent Trade Adjustment  Act of 1974 (with all its amendments).  It was based on the simple notion that workers unemployed due to foreign imports should get a total package higher than others based on the impact of foreign competition.  OK - if that is what Congress feels is justified - the agency staff will implement it.  No big deal.  But no - a phalanx of paper pushers, self justification junkies, congressional staff monkeys, clueless DOL dreamers, federal register mongers, and assorted other types have to include profoundly burdensome procedural processing regulations to make this basic concept into an impossibly complex act of terror.  So monumentally labor intensive that it detracts from every other aspect of the staff's job functions.  Unemployed TAA eligible claimants only really cared about getting the cash supplement to their regular UI benefits.  This normally amounted to about 70% or so of their usual after tax wage.  Only a miniscule amount even thought twice about job retraining, schooling or relocation.  Most merely returned to their former job after temporary layoff (largely in the shoe or apparel industry) or just found better jobs.  In the vast majority of cases, any counseling or training components were superfluous.  Unwanted and undesired by the recipients.

But this didn't stop the burdens placed on local office staff workers who were compelled by regulations to spend time and energy individually meeting with the clients to explain and promote all the unwanted provisions.  The staffers not only had to do this, but they had to produce mountains of paperwork proving it.  They had to give all kinds of aptitude tests, score the tests, submit reports, counsel about the results and establish individualized plans.  This to people who by and large were recalled by their former employers within months and had little or no interest.

So the staffers were beset by what some flunky in Washington or flaky congressional staffer thought was a good idea.  It detracted from their ability to efficiently do their basic job.  (Keep in mind that such relatively complex functions were assigned to the senior staff as most qualified),

Going back to the supplemental benefits received by TAA certified clients.  It should be realized that all states, through the regular "reporting of wages" requirement on employers, have records of wages earned.  This is how state unemployment taxes are paid by employers and how individual UI benefit rates are established.  One would therefore think that it would be rather uncomplicated to simply arrive at a predetermined TAA supplement from wage information already on record.  But no.  Once again federal register regulatory requirements unleashed a series of formulas needing to be processed in order to arrive at the figure.  Why merely utilize what was already available when the opportunity exists to demand additional cumbersome work.  Why shouldn't a bunch of turds sitting in cubicles force their psychotic desires to be carried out by those with no choice.  Heck, these anonymous paper pushers are paid to make life miserable for direct service providers.  This is the reason for their existence - to transform the simple into the unwieldy.  For God's sake - just tack on what is required to bring the total cash benefit to 70% of the previous average weekly wage and be done with it if that's what you want.  That would be the rational way of doing it - the most cost effective method.

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So this little story from the front lines is just a vanishingly small example of what could readily be cut from our budget.  One can multiply it by hundreds to see where so much of our tax revenue goes.  To "little Hitlers" pervading government everywhere who continue to justify their needless existence by making the simple difficult.  Who make the seemingly inexpensive profoundly costly.  Those whose uninformed decisions and ill-conceived requirements made overburdened direct service staffers perceive the TAA eligible as the enemy at the same time that the TAA eligible perceive the counselors/testers as unwanted nuisances.

At the same time, of course, the focus of the highest trained and qualified direct service staffers was diverted from "normal" clients to fulfill the neurotic desires of bureaucratic nothings with nothing better to do than negatively impact those who they believe they have actually served when going to cash their paychecks for a job well done.

Granted, my story goes back a few years.  But one would have to be far more than foolish to think that this situation is not even more egregious today.  They are least dangerous when on their coffee breaks and lunch breaks.  These types cut productivity so much and increase costs so much that it would actually be better if they called in sick 52 weeks out of each year.  If we insist on awarding them a salary at least they couldn't do any damage if they didn't show up.  (Just kidding).

If you really want to lower the federal budget deficit - eliminate these detriments to effectively functioning government agencies. They are parasites.  They serve no positive purpose whatsoever.  They detract from efficiency.  They "earn" salaries by increasing costs and raising frustration levels.  They are the bureaucratic equivalent of cancer and must be dealt with accordingly.  All they bring is misery to anyone impacted by them.

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