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Fiscal Waste During the Pandemic in Canada and the United States

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Submitted by the Fraser Institute

During the pandemic, governments around the world spent a significant amount of taxpayer money in an effort to support their economies. This was particularly true in Canada, with hundred billion-dollar programs such as the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Response Benefit (CERB), and in the United States, with nearly trillion-dollar programs such as the Paycheck Protection Program (PPP), Economic Impact Payments, and expanded and extended unemployment programs. Given the significant cost of these programs, it’s important to assess their efficiency or, rather, the degree to which they were excessive, poorly targeted, or simply wasteful.

Canadian COVID programs such as CEWS and CERB were ripe with problems including overpayments, funds provided to individuals and businesses not in genuine need, and excessive amounts of support that went above what was required to stabilize incomes. In the United States, independent analysis found excess unemployment payments, a poorly designed paycheck protection program, and largely ineffective stimulus payments.

Each country wasted billions in taxpayer money on their COVID responses, which was financed entirely through borrowing. Canada’s federal COVID spending totaled $359.7 billion, of which an estimated 25 percent ($89.9 billion), at a minimum, was wasted. Total federal COVID spending has added $8.3 billion to present-day interest costs and we estimate approximately $2.1 billion of that amount is attributable to wasteful COVID spending. Over the next 10 years, Canada’s federal government is projected to pay $21.1 billion in interest costs attributable to COVID fiscal waste. Put differently, the cost of Canada’s COVID fiscal waste will total roughly $111.0 billion by the end of 2032/33.

The United States’ COVID spending response came at a price tag of nearly $5.1 trillion and an estimated 25 percent ($1.3 trillion) of that amount, at a minimum, was wasted. At least $28.8 billion of current interest costs are directly connected to fiscal waste in the US during the pandemic. Further, the US government will pay approximately $289.4 billion in interest payments over the next decade due to COVID waste. In summary, the cost of the United States’ COVID fiscal waste will total more than $1.56 trillion by the conclusion of 2032/33.

Overall, it’s clear that over the long-term Canadians and Americans will face significant ongoing costs to pay for wasteful and poorly targeted government spending during the pandemic.


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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

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Kennedy to cut 10,000 HHS employees to reduce ‘bureaucratic sprawl’

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From The Center Square

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The changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees.

Robert F. Kennedy Jr. announced a significant restructuring of the U.S. Department of Health and Human Services on Thursday in a move to streamline the huge federal agency and cut costs.

Kennedy plans to trim about 10,000 employees from the agency’s workforce in addition to employees who left as part of a Deferred Resignation Program, similar to a buy out, earlier this year. The move is expected to save about $1.8 billion.

Kennedy said the restructuring won’t affect the agency’s critical services. When combined with HHS’ other efforts, including early retirement, the changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees. The restructuring will also align the department with Kennedy’s goals for a healthier U.S. population.

“We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” Kennedy said. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

Kennedy also said the restructuring of the department’s 28 divisions will get rid of redundant units, consolidating them into “15 new divisions, including a new Administration for a Healthy America, or AHA, and will centralize core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy.” Regional offices will be reduced from 10 to 5.

The overhaul will implement the new “HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins. These priorities will be reflected in the reorganization of HHS.”

Kennedy also said the restructuring would improve taxpayers’ experience with HHS by making the agency more responsive and efficient. He also said the changes would ensure that Medicare, Medicaid, and other essential health services remain intact.

The Administration for a Healthy America will combine multiple agencies – the Office of the Assistant Secretary for Health, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, Agency for Toxic Substances and Disease Registry, and National Institute for Occupational Safety and Health — into a single, unified entity, Kennedy said.

The Centers for Disease Control and Prevention will get the Administration for Strategic Preparedness and Response, which is responsible for national disaster and public health emergency response.

“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” Kennedy said. “This overhaul will be a win-win for taxpayers and for those that HHS serves.”

Among the cuts: The U.S. Food and Drug Administration will shed about 3,500 full-time employees. Officials said the reduction won’t affect drug, medical device, or food reviewers, nor will it impact inspectors. The CDC will drop about 2,400 employees. The National Institutes of Health will cut about 1,200 employees. The Centers for Medicare & Medicaid Services will cut about 300 employees. The reorganization won’t affect Medicare and Medicaid services, officials said.

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Feds Spent Roughly $1 Billion To Conduct Survey That Could’ve Been Done For $10,000, Musk Says

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From the Daily Caller News Foundation

By Hailey Gomez

The Department of Government Efficiency’s (DOGE’s) Elon Musk said Thursday on Fox News that the group found the federal government spent almost $1 billion on a survey that could’ve only cost thousands.

Following President Donald Trump entering office in January, his administration pushed for Musk and DOGE to comb through the government’s spending and identify potential cuts to save taxpayer dollars. On “Special Report with Bret Baier,” the Fox News host sat with Musk and his DOGE team and asked the billionaire what has been the most “astonishing thing” he’s witnessed so far in this process.

“The sheer amount of waste and fraud in the government,” Musk said. “It is astonishing. It’s mind-blowing. We routinely encounter waste of a billion dollars or more, casually.”

“For example, like the simple survey that was literally [a] 10 questions survey. You could do it with SurveyMonkey, [which] would cost about $10,000. The government was being charged almost a billion dollars for that,” Musk added.

WATCH:

Baier could be seen interrupting Musk as he sounded astonished, later asking, “For just a survey?”

Musk responded and said the survey was essentially pointless as it had no “feedback loop.”

“A billion dollars for a simple online survey — ‘Do you like the National Park?,’ and then there appeared to be no feedback loop for what would be done with that survey,” Musk said. “So the survey would just go into nothing. It was insane.”

In February, Democrats’ opposition to Musk’s and DOGE’s place in the Trump administration began to ramp up after the billionaire announced during an X discussion that he and the president had agreed to upend the U.S. Agency for International Development (USAID). Musk warned the agency was wasting billions of taxpayer dollars.

Some of the programs funded through USAID had not only attempted to advance a radical leftist agenda worldwide, but some had a high risk of landing in the Taliban’s hands and also aiding an organization linked to the Wuhan Institute of Virology.

Baier told Musk how he and DOGE technically had 130 days as a “special government employee,” asking if he believes he will be able to complete his task in the time frame allotted.

“I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that time frame,” Musk said.

“We are cutting the waste and fraud in real time. So every day like that passes, our goal is to reduce the waste and fraud by $4 billion a day, every day, seven days a week. So far we are succeeding,” Musk added.

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