Apropos of the previous post regarding Mr. Soros’ reflexivity theory, Andrew Sullivan quotes Alan Greenspan testifying before the House Committee on Oversight and Government Reform, October 23, 2008.

“I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms. I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”

The chart from the Center On Budget and Policy Priorities report, Where Do Our Federal Tax Dollars Go? , breaks down how the Federal Government spent $2.7 trillion in fiscal year 2007. Defense, Social Security and Healthcare continue to be the 3 big tickets. The “Everything Else” category accounts for Benefits for Civilian Retirees and Veterans, Education, Scientific and Medical Research, Transportation, and Non-security International expenditures.

Andrew Sullivan also points out an interesting article on Portfolio.com about the Pentagon’s accounting problem.

“Since 2004, the Pentagon has spent roughly $16 billion annually to maintain and modernize the military’s business systems, but most are as unreliable as ever—even as the surge in defense spending is creating more room for error.”

How can you not have waste and abuse if you can’t even account for the resources you expend?

New House rules mandate that the congressional earmarks be identified. In the upcoming defense appropriations bill there are 1,337 earmarks reported which will cost $3.07 billion, ”less than half the number and value of earmarks in last year’s bill. ” It’s a start.

“Even though the panel disclosed the project name, the requesting member, and the budget line in which the project was requested, the bill and its earmarks are not a model of transparency. The panel did not disclose either the amount requested or the companies that would benefit.”

Sens. Tom Coburn (R) of Oklahoma, Barack Obama (D) of Illinois, Thomas Carper (D) of Delaware, and John McCain (R) of Arizona  are consponsors of legislation S. 2590 - Federal Funding Accountability and Transparency Act, that “directs the White House Office of Management and Budget to create a website showing all recipients of federal grants, contracts, and other payments. It must be free, easy to search, and accessible to the public.”

The Federal Assistance Award Data System currently available only provides access to information for one year. The new system would provide a resource to search for US contracts, grants, or other payments made over the past 10 years so taxpayers could really see where there money was going.

 Source: Christian Science Monitor