Yet More Government Waste

Sen. Chuck Grassley, chairman of the Finance Committee, is asking Medicare/Medicaid administrator Mark McClellan why two senior Medicare investigators spend up to two months each year “on travel to popular vacation destinations.” Grassley wants to know, “What did American taxpayers and Medicare beneficiaries get for the travels of Rollow and Jencks?”

Good for him. As I suggested in another recent item, it’s better for Grassley and the Finance Committee to be exercising their oversight of federal programs than to run amok through American society, investigating the Red Cross, American University, the Nature Conservancy, and other charities and nonprofits. A top Grassley aide has met 500 times with nonprofit officials as part of his investigations and hearing preparations.

So better to remember that the role of the United States Senate Committee on Finance is not to regulate American society, but to oversee the finances of the federal government. In that light, the investigations into wasteful spending at Medicare and the Legal Services Corporation are to be welcomed.

Still, you have to consider: The budget for Legal Services is about $326 million, and the allegedly wasteful spending probably amounts to a few million dollars. In the case of Medicare, Grassley is complaining about $75,000 in travel expenses. Total spending on Medicare will rise by $52 billion this year, to $382 billion. Medicaid will cost taxpayers another $200 billion in FY2007. The federal deficit is projected to total $1.76 trillion over the coming decade. And the government’s total fiscal imbalance, as calculated by Kent Smetters and Cato’s Jagadeesh Gokhale, is now $63 trillion.

When the Senate Finance Committee investigates $75,000 in suspicious travel at Medicare or doubled meal expenses at Legal Services, it is engaging in sleight of hand. Like a magician who draws your attention to his right hand while he moves things around with his left, the committee is trying to divert our attention from the fact that it is ignoring these massive problems while it gets favorable headlines for penny-ante stunts.