This illustrates precisely why we can’t count on politicians and bureaucrats and regulators to police themselves. It likewise shows how, once you expand government, it is nearly impossible to contract it without a complete and, dare I say, fundamental transformation, of the political culture.
Which is what the TEA Party proposes. Not coincidentally.
Cato:
Perhaps no failure was as avoidable as that of the Bernie Madoff scheme. After all outside parties basically put the case together and brought it to the Securities and Exchange Commission (SEC). Yet the SEC did nothing until it was far too late. Eventually the SEC’s human resources department and an outside law firm advised the agency on how to handle these regulatory failures. Their recommendation: fire the manager responsible. SEC Chair Mary Schapiro’s response? No, as such “would harm the agency’s work.” I’d think having incompetent employees would harm the agency’s work. But then we have yet to hear what happened to the many SEC employees that spent the crisis watching porn instead of doing their job.
This is just another example, in a long list, of why relying on the relatively weak incentives of government regulatory oversight is inferior to relying on the strong incentives contained in market participants having their own wealth on the line. But then for such incentives to be effective, we need to end bailouts and have real market discipline. Sadly we are currently stuck in the worst of both worlds: incompetent and unaccountable regulators coupled with a neutering of market discipline by these very same regulators.
Firing failed regulators would set a bad precedent: specifically, that failed regulators can be fired for performing terribly in their jobs.
This goes against the very essence of a leftwing union mentality: you get all your life chits for being, not for performing well or even adequately.
Competition is unfair. Everybody in the public sector is entitled to a lifetime trophy.
As for the private sector? Meh. So long as they shut up and pay, who really cares?
(h/t Walter Olson via Twitter)
This is what happens when the “Everybody gets a trophy” mentality escapes the playground.
Reminds me of the Incredibles:
It seems to me that the motion of the notion was historically in the other direction, from “civil service protections” toward the playground.
The harm being the tell all book they would write if fired. Keeping them on the payroll keeps them quiet. Keeping quiet, in turn, might even be beneficial for a nephew or two.
Cynical much? Not me!
But hey, the Administration also encouraged Solyndra to hold off its layoffs until after the mid terms. http://ace.mu.nu/archives/323750.php
So it is all good. This is how you save jobs in the Obama administration!
Somebody has to watch web porn. If it weren’t SEC employees, why…you or even I would have to do it. I say give ’em a break.
we should at least know the names of the failshit regulators …. this is the same as how the lickspittle media protects union whore teachers and piggy piggy union whore cop nazis when they fuck up
constantly
Reminds me of Harry Reid noting that the private sector was doing just fine but the public sector was suffering not too long ago. I don’t which was worse, his inability to see and understand the truth or the blatant implication that the public sector is his real constituency.
Anyone who can work for a gubmint agency without having to fight the desire to walk into a helicopter blade is by definition useless.
A regulator who cannot regulate the industry under his watch should be fired. An administrator who cannot administer the regulators under her watch should be fired. Why is this such a difficult concept?
Because as a concept it doesn’t leave room for the question of which side of the bread is buttered.
Clearly the manager had something on the SEC. It is clear that he told them that he would not be the fall guy. It is much more likely that the failure went higher.
This part is incorrect though. They really do want the whole private sector in unions too. They just haven’t managed, what with it being a model for bankrupcy, as well as they have in unionizing government workers.
By hook or by crook.
Is it Michigan where, if you take care of an elderly parent at home, you’re automatically enrolled in SEIU and the taxpayers are raped to pay your
protection moneydues?