Sometimes I sound like a broken record—err, broken iPad for all the millennials.  But once again, the problem of bureaucracy comes up, in this case, specifically in relation to the Veterans Administration.  This is the scandal that won’t go away.  It is in the news again, as we rad of whistleblowers who are “rewarded” for their efforts with harassment from the VA officials.  In the meantime, veterans are still placed on waiting lists, then they wait for what would be an unconscionable time period in any private sector or ordinary public sector hospital.  When they do get service, it is sub-standard at many locations.  Then when inspectors start “snooping” and whistleblowers begin to reveal these and other abuses, the VA stymies investigations and retaliates.

But this is typical of the kind of dysfunction to be found in large bureaucratic agencies.  And here is the problem.  Instead of attacking the problem at its root, almost everyone goes for the superficial approaches.   The problem is not that the VA is somehow acting irrationally, rather its leaders and managers are in fact acting perfectly rationally, and perversely, because they can.  It is a well studied phenomenon that public organizations, who have no profit incentive or competition, tend to adopt different strategies that may not be in line with the needs of their consumers—in this case, veterans.  The bigger they get the more likely this perverse phenomenon becomes.  At the Federal level, the pathologies of bureaucracies seem to be so commonplace that no one is even shocked.  We have the IRS, the SEC, the CPBA, the NSA (yes, and it is pretty opaque too), the EPA (a notorious offender), the DOE, DHS and others.  Because of the lack of competition, some price and cost mechanism, and of course, transparency, these agencies are able to pursue maximizing strategies like bigger budgets, nicer offices, pay raises and bonuses, and pretty “cushy” work situations without any or much scrutiny.  Their managers, heads and even line employees have every incentive to support such strategies.  The net outcome is just what we would expect.  Inefficiency, unresponsiveness and even injustice, sometimes criminal by any reasonable standard.  The VA is no exception, though it does, as most agencies do, contain pockets of resistance to the status quo.  But the dissenters are usually in a minority and when they speak out, the agency tends to try to squash them, as has happened with the VA.

So why do we insist on superficial band aid solutions?  Congress cannot just moan about incompetent heads and managers, or rail against incompetent and deliberately bad behavior.  It cannot simply argue for “better people” though that might help somewhat.  The agency culture is too ingrained and civil service laws and rules so arcane as to be byzantine.  The solutions are not found in adjustments at the margins.  Taking the VA as an example, the best solution—and a politically feasible one too—is to eliminate most of the current functions of the VA, give veterans a card that allows them to get help at any hospital they choose and pay for it.  That should take care of the scandalous wait times, the lying officials, and the bad service at many facilities.  Give our veterans the choice and quality they deserve.  Cut almost all funding for the VA and allow those who need those services it did provide to decide for themselves.

Now to clarify, some kinds of services are so “public” in nature (like many functions of national defense) that it is practically impossible for the private sector to provide them without serious problems arising.  Nevertheless, even agencies can and should be brought under tighter scrutiny.  Merely reducing their tendency to “mission creep” can help immensely.  But other means are available as well.  But the VA is not one of these kinds of services and so nothing is lost if it simply disappeared.

And, while we are at it Congress should also cut most of the EPA’s funding.  Worried about a government shutdown if those budgetary strategies were adopted?  Stop worrying.  Or, wait until the next president, in which case little will be done.  Yes, I said it.  Even under a one-party regime, special interests are very strongly attached to their programs.  Congress should just take the plunge whenever it can, though I am a bit skeptical that it will do anything to rein in these Federal Leviathans.  But I reiterate that the only long-term and viable solution is to lop off some agencies from the Federal body politic—or rather, body administrative—in order to save the rest of us.