“The reforms in this bill are a good start. But much better solutions that actually drain the swamp would find a way to reduce bureaucracy and roll back regulations.”
On Friday, Donald Trump and Republicans enacted a VA reform bill. The bill makes it easier to fire underperforming employees, allows the VA to deny bonuses to disciplined employees, and strengthens the protection of whistle blowers. These are good efforts, because the unions and government bureaucracy have protected underperforming teachers, government officials, and workers for far too long. But they miss the fundamental point. A true reform would get at the root problems, such as removing a lethargic bureaucracy that doesn’t serve its community and giving vouchers that would allow veterans to get care at private sector facilities.
Donald Trump promised to be a transformative figure that would drain the swamp. Yet this bill does little more than provide more stringent rules for the crocodiles. Being able to fire somebody is a basic power to private sector employers, and it helps ensure the quality of the work force and the product being delivered. Yet this bill only streamlines the firing process, which means the VA still doesn’t match the private sector.
The bill protects whistle blowers but does nothing to stop the root causes of those abuses. Free market forces demand that a company adapt, improve, innovate, and deliver quality goods at a quality price or fade away. For example, in 2015, the A&P grocery chain closed its last store. During its heyday in the early and mid-20th century, they had as large a market share as Walmart does today. But the stores were eventually outclassed by new models closer to the suburbs carrying national brands that they often lacked.
The A&P failed to adapt, and it no longer exists. The needs of customers are now met by new and more efficient stores, such as Walmart and Amazon, which will eventually be replaced by yet other innovating companies. The net result for customers is better products and lower prices.
In contrast, the government has little incentive to change and innovate. A government entity that fails to adapt can simply demand more money. Unlike a business that goes bankrupt, they have the unlimited pockets of taxpayers and politicians and can always raise taxes and demand a bigger part of the budget. Those who say no to additional funding are accused of failing to support the soldiers (or lacking compassion and so on). Firing unproductive employees is just a minor factor in the failures of the VA.
When a turgid bureaucracy then tries to react to market or political pressures to be leaner and more efficient, it simply doesn’t have the ability to do so. A demand to shorten the time that veterans waited for coverage didn’t result in more efficiency; it resulted in “hidden” lists that distorted the wait time. A demand to increase the quality of patient care didn’t result in better employees, only a bigger budget, and so on.
The reforms in this bill are a good start. But much better solutions that actually drain the swamp would find a way to reduce bureaucracy and roll back regulations. Trump and Republicans should give more than lip service to the free market and let those market forces reduce the price while increasing quality similar to the effect on televisions, phones, and every other product where the government hasn’t intervened.
