Lack of business experience is rampant in Washington DC

Michael A. MacDowell

The Department of Labor’s own Inspector General’s Office recently reported that $77 billion of the $413 billion unemployment benefits paid by the Department of Labor in 2021 was wrongfully paid. This amount represents 18% of all their unemployment benefits.

These incorrect payments do not include an additional $865 million in “unknown payments” — allocations to recipients that have not been identified. And these Department of Labor mistakes don’t include the $100 billion illegally obtained from the Paycheck Protection Fund (PPP) and administered by the Small Business Administration. These and other misallocations were reported as part of the Payment Integrity Act 2019, which requires federal departments and agencies to report any or all improper payments in government benefit programs to the Office of Management and Budget (OMB).

Michael MacDowell

Few can deny the humanitarian intentions behind the potpourri of benefits to individuals, organizations and businesses during the pandemic. Many of the programs helped families during the economic storm caused by the pandemic. However, the indisputable fact remains that significant amounts of taxpayers’ money were wasted on ineligible people, businesses and institutions.

The “opportunities” for dishonest activities were more abundant during the pandemic. Consequently, the poor management of government programs has become more visible to the public. However, the problem of mismanagement of government programs is a perennial problem. These departments and agencies are just too big and desperate to be managed by people with extremely little business experience.

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