Politicizing Metrics 101
Contents
Metrics are a set of measurements that quantify results. Good management requires good decisions and good decisions must be based on good metrics. 2014/05/23 User:Tharrisn
What Are Metrics
Metrics are a set of measurements that quantify results. Good management requires good decisions and good decisions must be based on good metrics.
- The starting point for understanding government is understanding the fundamentals of the role of metrics in organizational management, thus providing insight into the role that it plays in governing.
- Start with the most straightforward case – commercial corporations
- Investors provide their money in order to get a return on investment. The fundamental metric is ROI. It’s a very precise metric – accurate and understood by all. If it begins to underperform, managers lose their jobs. With no improvement. The CEOs lose their jobs. If no improvement after that the board of directors is voted out by the stockholders – they lose their jobs. If that doesn’t result in improvement. The corporation goes into bankruptcy and everyone’s job is at risk. So basically everyone’s livelihood is linked to an exact mathematical metric. The management process at the lower levels uses lots of secondary metrics that are indicators of how things are going and managers frequently use those metrics to promote their self-interests, but to the extent that their behavior damages ROI, they’re in trouble.
Historical Insights Into Politicizing Metrics
There is no ROI-equivalent fundamental management metric for government. But it has a huge array of secondary metrics. In the political side of government – as opposed to civil service – one’s livelihood is dependent upon getting votes, so the secondary metrics that exists are manipulated and selected to optimize getting elected. This is nothing new, it’s been going on for at least 2500 years. Here are some concise quotes by highly respected people that make the point:
- “We hang the petty thieves and appoint the great ones to public office.” –Aesop/about 600 BC
- “Just because you do not take an interest in politics doesn't mean politics won't take an interest in you!” –Pericles (430 B.C.)
- “In general, the art of government consists of taking as much money as possible from one class of citizens to give to another.” –Voltaire (1764)
- “In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress.” –John Adams/about 1800
- “Government is the great fiction, through which everybody endeavors to live at the expense of everybody else.” –Frederic Bastiat, French economist/1801-1850
- “No man's life, liberty, or property is safe while the legislature is in session.” –Mark Twain (1866)
- “A government which robs Peter to pay Paul can always depend on the support of Paul.” –George Bernard Shaw/early 1900s
Current Insight Into Politicizing Metrics
The most obvious example of manipulating the data to your political advantage is the unemployment rate. If your party is in power, you use the lower U3 rate as the metric. If your party is not in power use the higher U6 unemployment rate. U-3 is the official unemployment rate, which is the proportion of the civilian labor force that is unemployed but actively seeking employment. U-6 unemployment rate counts not only people without work seeking full-time employment (the more familiar U-3 rate), but also counts “marginally attached workers” and those working part-time for economic reasons. Their recent history can be seen here:
The Big Problem
You can count on every candidate for office to optimize his or her use of the government’s huge supply of metrics and dollars to get elected. Here are a few of the many ways that it is done:
Giving away government money to gain political support
By Presidential decree
“The Administration has decreed that hundreds of billions of dollars in healthcare subsidies will be paid out in states that embrace ObamaCare–with no questions asked about eligibility.” Source–Read More…
By Legislative action
Loopholes
A loophole is an ambiguity in a law which can be used to circumvent or otherwise avoid the intent of the law. Loopholes are searched for and used strategically by legislators to benefit their political supporters. Source–Read More…
Earmarks
“An earmark is a legislative provision that directs approved funds to be spent on specific projects, or that directs specific exemptions from taxes or mandated fees. Typically, a legislator seeks to insert earmarks that direct a specified amount of money to a particular organization or project in their home state or district.” Source–Read More…
Since there is no fundamental metric for government effectiveness, nor for the performance of individual politicians, politicians are free to manipulate the system and the information. And the sad truth is, they do so for their own benefit to the great detriment of the people. This means doing what your big contributors want done. This is not a new thing – what’s new is the amount of dollars involved, and it has become a huge problem.
How Much Money is Involved?
On the Legislative side
Sen. Tom Coburn’s 2013 waste book indicates that there was nearly $30 billion in questionable and lower-priority spending through legislative action. Source–Read More…
On the Presidential side
President Obama is demonstrating how he can advance his agenda without legislation. Here’s a recent quote:
- “We’re not just going to be waiting for legislation in order to make sure that we’re providing Americans the kind of help they need. I’ve got a pen and I’ve got a phone. And I can use that pen to sign executive orders and take executive actions and administrative actions that move the ball forward…” Source–Read More…
He used his pen and phone to make over 20 changes to Obama care without congressional approval. Source–Read More…
The additional cost for these changes is unknown, but overall, the cost of ObamaCare to the American people over the next 10 years will not be less than $1 TRILLION, as Obama promised in his nationally televised speech to the nation. Instead, the real cost of ObamaCare to the Federal Treasury is $2.4 TRILLION, according to the non-partisan Congressional Budget Office.
Source–Read More…
Campaign Financing
The 2012 presidential election was the most expensive in history. (Updated: Dec. 7, 2012.)Democrats & Barack Obama raised $1.20 billionRepublicans & Mitt Romney raised $1.18 billion
The top contributor gave $30 million and 10 others gave 3 million or more each.
According to CRP’s new analysis of Federal Election Commission data, this past election will likely cost $6 billion.
“In the new campaign finance landscape, post-Citizens United, we’re seeing historic spending levels spurred by outside groups dominated by a small number of individuals and organizations making exceptional contributions,” said Sheila Krumholz, executive director of the Center for Responsive Politics.
House and Senate candidates combined will spend about $1.82 billion.
What remains unknown — and may never fully be accounted for — is how much money secretive “shadow money” organizations spent, with some investing massive sums on ads, but also on unreported and purportedly “non-political” activities, as the election neared. It may take years to determine how much they spent. Furthermore, it likely will never be known who provided the vast majority of this money, which includes at least $203 million in the last two months. Source–Read More…
Bottom Line
So, with only faulty metrics and the media filled with political misinformation, what can be done to make the future better? Thankfully, the power is still in the hands of the people – if we can just get the political momentum to change things. And how do we do that, by developing a good understanding of the issues most important to our future and of the options being considered for each. Make sure your vote reflects an informed decision on your part. Better to not vote than to vote in a way that would threaten your future, and that of our country.
