Here’s an interesting story: a government scandal arising from the government attempting to hide what we all already knew they were doing…. wasting taxpayer money.
This particular case arises out of the Pentagon, when a Pentagon-commissioned study in 2015 found the Defense headquarters wasted $125 billion. Following the discovery, there was a rush to hide the findings of the study before they could be made public.
According to the Washington Examiner; In January 2015, the Pentagon learned it could cut $125 billion in administrative costs at the Arlington, Va., facility over the next five years. But Defense leaders chose to keep the report secret in fear lawmakers would cut funding, the Washington Post found.
The Defense Business Board study stated all of these cutbacks could take place without any military employees being terminated. The federal advisory board of corporate executives and consultants recommended that some employees be encouraged into early retirements and their positions be eliminated through attrition, while overcompensated contractors would be cut back.
The Defense Department has more than 1 million contractors, civilians, and uniformed personnel on its payroll, as well as 1.3 million troops on active duty, which is the lowest amount in some time.The now-public study may catch the attention of President-elect Trump, who has promised to bulk up America’s military while “eliminating government waste and budget gimmicks.”It should be noted that the $125 billion in spending is over five years – so $25 billion in waste annually (or 4 percent of the military budget). It’s small as a percentage, but shows just how expensive waste truly is. [Note: This post was written by The Analytical Economist]