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Money Matters: JP Morgan saying sorryNECNJP Morgan Chase CEO Jamie Dimon plans to apologize before members of Congress on Wednesday for a trading loss that has cost the bank more than $2 …and more »
Facebook stock performance, IPO said to be under investigation by SECWashington PostThe Securities and Exchange Commission is examining how the company, its underwriters and the NASDAQ stock market executed Facebook's IPO, according to Capitol Hill…
The markets rallied Monday on news that global leaders favor additional stimulus. The hope is that additional spending will induce growth and put the world back on track.
Don’t hold your breath.
Big government robs the economy of wealth, strips it of initiative and further undermines our recovery.
So why, then, do our leaders continue to throw good money after bad?
Try this on for size.
In 1958, a man named Cyril Northcote Parkinson published a series of essays in book form called Parkinson’s Law: The Pursuit of Progress. In it, he postulated a mathematical equation that describes how bureaucracies expand over time and why.
I don’t know if he had a wicked sense of humor or a dramatic flair for irony but the equation at the core of his argument relied on something he termed the “coefficient of inefficiency.”
The coefficient of inefficiency says the size of a committee or government decision-making body is determined by the point at which it becomes completely inefficient or irrelevant. Or both – hence the name.
Parkinson determined that the minimal effective size for a decision-making body is about five people, and the optimal size is somewhere between three and 20.
Last time I checked, we had 548 people inside the beltway – 535 voting members of Congress, nine Supreme Court justices, one president, one vice president, one treasurer and one Fed chairman – who are responsible for making decisions on behalf of 330 million citizens.
Combine that with nearly 2.8 million total Federal employees (excluding our military) and we’re waaaaay beyond anything even remotely resembling workable decision making.
Now here’s the thing. Parkinson also observed that bureaucracies grew by about 5%-7% a year, “irrespective of any variation in the amount of work (if any) to be done.”
In other words, the larger bureaucracies become, the more ineffective they get even if additional people are hired to do work that doesn’t exist.
And to think, all this time I thought our government ran on the Peter Principle!
Parkinson attributed this to two things:
I was thinking of writing a book. “The Coming Age Warfare”. If I did get around to it, the following story might be the first chapter. Like most wars, the one I see coming between young and old will simmer for years. Along the way there will be sk…
These days, being a millionaire typically qualifies you as part of the one percent. But in Congress, it only makes you average.
About 47 percent of Congress, or 249 current members of Congress, are millionaires, according to a new study by the Center …
October 14, 2011
In Private, Wall St. Bankers Dismiss Protesters as Unsophisticated
By NELSON D. SCHWARTZ and ERIC DASH
Publicly, bankers say they understand the anger at Wall Street — but believe they are misunderstood by the protesters camped on t…
An Agency Builder, but Not Yet Its Leader
By EDWARD WYATT
Published: July 4, 2011
WASHINGTON — It is conventional wisdom in this town that the first director of the new Consumer Financial Protection Bureau will be anyone but Elizabeth Warren.
People scared of getting “effed” up!
Gun stores across America have reported a roaring trade for pistols, especially the Austrian-made Glock weapon that retails for about $499. In Arizona alone, one day sales of pistols rose 60 per cent on Monday t…
As if we needed more evidence that the corporations control government. Check out this piece from the Washington Post. Can you say ‘Bribery?’….
Numerous times this year, members of Congress have held fundraisers and collected big checks while the…