A news story in today’s Boston Globe titled, “Auditors Fault Treasury Policing of Bailout Funds,” cites a report by federal government auditors at the Government Accountability [sic] Office. The GAO criticized the Treasury for not making sure banks comply with limits set by Congress.
The story goes on to say:
“The GAO’s discouraging report makes clear that the Treasury Department’s implementation of the (rescue plan) is insufficiently transparent and is not accountable to American taxpayers,” said House Speaker Nancy Pelosi, D-Calif.
Ms. Pelosi, apparently, is shocked, shocked that such a thing could occur. After all, she did so much to make the Treasury accountable to taxpayers by pushing a bill that would let us get our money back if the government messed up.
Seriously, though, I think her upset is on a par with the upset of those who blindly supported the U.S. government’s invasion of Iraq. The standard procedure for most members of Congress is to ignore everything public choice economists teach us about the incentives of bureaucrats, give the bureaucrats enormous power, and then complain when they use that power badly, fail to achieve their goals, create other problems, and transfer wealth to their political allies.