Patrick Carroll selects some of the least-defendable ways the US government has been spending taxpayer money from Senator Rand Paul’s 2024 Festivus Report, including pickleball courts, $10B in unused office space, DEI initiatives for birdwatchers, crop fertilizer in foreign countries, and literal circus performances:

Rand Paul by Gage Skidmore is licensed under CC BY-SA 2.0 .
Why does such government waste persist year after year? A significant part of the explanation traces back to the concept of concentrated benefits and dispersed costs. Essentially, the beneficiaries tend to be a small, concentrated group, so they lobby hard for these outlays because they stand to gain a lot from them. Taxpayers, on the other hand, tend to be dispersed and only minimally affected by any single expense, so it’s not usually worth it for them to lobby against the spending, or even learn about it in the first place.
Economist Gordon Tullock famously illustrated this concept with his fictional Tullock Economic Development Plan. The plan “involves placing a dollar of additional tax on each income tax form in the United States and paying the resulting funds to Tullock, whose economy would develop rapidly”.
Think about the incentive Tullock would have to advocate for this plan, compared to the incentive that an ordinary taxpayer would have to look into it and voice their objections. With campaign contributions and votes to be gained from the special interest beneficiaries, is it any wonder politicians often go for these kinds of wealth transfers?
The ubiquity and stubborn persistence — year after year — of all this waste, combined with the economic theory that explains why it happens, suggests that there is a fundamental problem with the process of government as we know it. This is not, as many are itching to believe, a “Democrat” problem or a “Republican” problem. The degree of government waste changes very little with changing administrations. No, this is a problem with the government as such.
To solve this problem, we need to ask not just who should run the government, but what the government should be allowed to spend money on in the first place, given what we know about its entirely predictable and repeatedly demonstrated propensity for waste and dysfunction.
Milei has already started that conversation in Argentina. Let’s hope that with the new Trump administration and DOGE, that’s a conversation we can have here as well.