Pick an Agency, Any Agency: GIPSA

As fiscal conservatives continue to seek avenues through which to derail the federal gravy train, it helps from time to time to take a look at the mind-numbingly long list of federal departments and agencies that are on board. Of course, this list is hardly exhaustive – just one that is publicly available – but it can certainly give us some concrete ideas on how and where to cut the spending.

Today: Grain Inspection, Packers, and Stockyards Administration

About: “The Grain Inspection, Packers and Stockyards Administration (GIPSA) facilitates the marketing of livestock, poultry, meat, cereals, oilseeds, and related agricultural products, and promotes fair and competitive trading practices for the overall benefit of consumers and American agriculture. GIPSA is part of USDA's Marketing and Regulatory Programs, which are working to ensure a productive and competitive global marketplace for U.S. agricultural products.”
FY 2010 Budget: $84 million (Source)

You read that correctly. The USDA essentially has a marketing department called GIPSA, established in 1994. While they speak of a “competitive global marketplace,” however, they don't deal with foreign marketing or exports; no, for that, you'd have to go down a couple floors to the Foreign Agricultural Service (FAS). But that's another article for another day. If GIPSA is in the business of marketing, but there's a separate agency to improve American agriculture in foreign markets, then what does that leave GIPSA tasked with?

Pick an Agency, Any Agency: BTS

As fiscal conservatives continue to seek avenues through which to derail the federal gravy train, it helps from time to time to take a look at the mind-numbingly long list of federal departments and agencies that are on board. Of course, this list is hardly exhaustive – just one that is publicly available – but it can certainly give us some concrete ideas on how and where to cut the spending.

Today: The Bureau of Transportation Statistics (BTS)

About: “The Bureau of Transportation Statistics (BTS) was established by the Intermodal Surface Transportation Efficiency Act of 1991. As the newest operating administration of the U.S. Department of Transportation, the BTS mission is to compile, analyze, and make accessible information about the nation’s transportation systems; collect information on intermodal transportation and other areas as needed; enhance the quality and effectiveness of the Department’s programs through research and the development of guidelines; promote improvements in data acquisition and use.”

FY 2010 Budget: $28 million (Source)

Cash for Caulkers

If you regularly watch or read interviews with Peter Schiff, you'll know he has long predicted a 'dough-for-dumps' program.  Like many of the other successes he's had in forecasting the economic situation we are in, it appears his dough-for-dumps scenario may be realized to an extent.  Expect to see it announced next week by the President.

...the economy still needs help. So White House officials are looking at creating a new version of cash for clunkers — this time for home weatherization.

John Doerr, the Silicon Valley venture capitalist, and former President Bill Clinton have separately suggested versions of the idea to the White House. Mr. Doerr calls his proposal, which would give households money to pay for weatherization projects, “cash for caulkers.” Rahm Emanuel, President Obama’s chief of staff, told me, “It’s one of the top things he’s looking at.”

While the Cash for Clunkers program spent a total of around $3 billion; or $24,500 per car, the Doerr plan would cost $23 billion over two years.  That $23 billion would be well spent according to the author of the editorialized article, David Leonhardt:

Done right, cash for caulkers would be precisely the kind of stimulus that makes the most sense: spending money now to save money later.

Perhaps you can help me attempt to educate Mr. Leonhardt and others on the simple economic theory of the broken window fallacy by posting it on your facebook and twitter feeds?