At A Wrap Rate of 733.33%, Does America Deserve Damnation?


If our media worked to inform the people – instead of electing Democrats,
the Stimulus Plan of 2009 would go down in history with the $500
jet-fighter toilet seat. It would be remembered as our modern Teapot Dome
Scandal. It would go down in history as one of the most pathetically
wasteful and corrupt government programs ever spawned. Sixteen Billion
dollars of initial spending have been analyzed for effect. Thirty-thousand and eighty-three new workers have joined the workforce as
a result of these efforts.

Vice President Joe Biden shows surprising humility when he describes this
as better than expected. If I were Joe Biden, my personal expectations
would remain pretty low as well, but this is patently ridiculous. By any
fair and objective means of evaluation, this program has careened past
Failure-Land; afar into the darkling plain of Clusterkfuc Morder!

Measuring the effects of stimulus against the same efficiency standards
used to rate major defense contractors gives us a snapshot view of just
how rapidly our stimulus dollars are going up in smoke. When the Defense
Contract management Agency evaluates the cost effectiveness of a defense
contractor, they look closely at how much the contract costs per hour of
labor performed.

After subtracting off material costs, they look at the actual salary being
paid to the worker, and then they look at the costs that have nothing to
do with that salary. The percent of costs that have nothing to do with
paying for labor performed are termed overhead. The total cost of labor
per hour is called the fully-burdened labor rate. The percent of that
cost that is for stuff other than salaries is termed in shorthand the wrap
rate.

Assuming the stimulus plan isn’t buying wholesale lots of raw materials
for industrial plants, the material costs are negligible. They’ve spent
the $16Bn in question on hiring people and on other stuff that goes into
the wrap rate. To put 30K to work at $16Bn implies approximately $500,000
in spending per individual hired. (I’m being nice this morning, the
unrounded figure is less flattering.)

In 2007, the median US income tallied approximately $50,000. If the typical stimulus job is about at this salary, we get a wrap rate of 900%! Defense contractors will feel the wrath of Uncle Sam for rates over 300%. Our stimulus plan is performing three times worse than the level of contract performance that helps get weapon systems terminated.

Realistically, the programs in question probably gold-plate these salaries
a wee-bit. A case where the average stimulus job pays $100,000 a year to
people for not showing up in unemployment stats and making Congress look
bad, would imply a wrap rate of only 400%. A contractor who knew
Jim Moran or Jack Murtha would indubitably be allowed to continue
“working” at that scale of waste, fraud and abuse.

Typically, the truth lands somewhere between the extremes. Nationwide,
the median adjusted base pay for a federal government worker equals
$60,000 in rough order of magnitude terms. Fedsmith.com gets more specific.

So, according to OPM, here is the median adjusted base pay for
Executive branch (non-postal) employees as of March 2006:$60,636.

So we take the $500,000 figure apart and assume stimulus workers have my
rough approximation of the median government salary. This gives us $60K
in actual stimulus and $440K in overhead. Our overhead percent comes in
at 733.33%. Keep in mind once Boeing or Martin-Marietta get over 300%;
these guys are profiteering scumbags! Only in the magical kingdom of Joe
Biden’s head could a 733.33% wrap-rate equal anything other than “what was
my attorney’s phone number again?”

This vastly ineluctable kfuctitude befuddles your humble blogging
correspondent’s pedestrian mind. It probably fries circuits on smarter
models than Little, Old Moi. I’ve been a loyal Washington Redskins fan
for decades and still can’t figure out how Biden’s Boyoes managed to
perform this poorly.

Yet, to read Thomas Friedman, to read Paul Krugman, and to read Robert
Reich, we need more stimulus. We’d do better subsidizing Tony Montana
from Scarface. That guy put people to work on every street corner.
The turnover rate was high, the working conditions left much to be
desired. However, the .45 Caliber Lean Six Sigma initiatives insured that
his employees were good stewards of the company product.

What this stimulus program does is enshrine inefficiency as the officially
approved American business model. Massive government largess is now how
things don’t get done in business today. Absent a major electoral
turnover, there will never be any penalty for doing twice as poorly at
stewardship as a major defense contractor libel to be judged fraudulent or
indolent by officially published standard.

Former Democratic Presidential Candidate Michael Dukakis once proposed
voting in an upcoming election based on competence; not ideology. I
personally don’t have to go that route. I hate Barack Obama’s ideology as
well as Joe Biden’s professional standards of negligence.

But if you straddle the fence on Lib Vs Con type stuff, ask yourself a
very important question. How long can an organization of any type, on any
scale, under any conditions expect to survive if it spends $25 to obtain
$3 of useful value on a daily basis? People will argue contra that Rahm
Emanuel and others of his ilk, are among the most competent sharks
swimming in a vicious, primordial political ocean.

I remind these people that the authors of our government’s liability for
negligence rules lumped waste, fraud and abuse in the same category for
intelligent reasons. At the end of the day, they all have the same
effect. It doesn’t matter how the Kansas City Chiefs got to 0-5. It
doesn’t matter how people got roped into investing with Bernie Madoff.

Regardless of the causal vectors, the Obama Administration still spends
$25 of stimulus money to get $3 of useful result. You don’t have really
care whether Rush Limbaugh ever owns an NFL team to understand that this
pathway leads to darkness. You don’t have to think Michael Steele is
making the GOP all down wit’ it and fly to understand that the Democrats
will never perform any better than $25 of stimulus spending to generate $3
of useful performance until reality kicks their rectums good and hard.

If this election isn’t about anything else. If we truly don’t care
whether Iran gets the capability to burn Jerusalem off the face of the
planet, this election is about what management model pervades American
society. We cannot be as wasteful as General Motors and avert tragedy.

The Federal Government cannot continue to spend $25 and get back $3 in
return. There is no Mommy around to make this all better when it blows up
in our faces. DCMA has no authority to audit this terrible stimulus
program or to reprimand the cretins who executed it with almost
intentional lack of precision. We, the voters, have that power. In 2012
we must use it.

A wrap-rate of 733.33% is not just some abstruse statistic. It is a
symptom of a nation dying in a state of ill-grace. A nation worthy of a
one-way ticket to Hell. Redemption comes from firing these idiots.
Redemption can come in 2012.



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17 Comments Leave a comment

52% of us deserve damnation, Repair Man.

janis (Diary) Saturday, October 17th at 10:14AM EST (link)

But unfortunately the rest of us will go down with the ship as well. This day has been coming for quite a while now, has needed to come, and yet the ones who have looked forward to our demise as a world power have no true idea of just how vile things are going to get without America to beat back the darkness.

It’s akin to living in the last days of the Roman Empire in Britain.

No, 52% of us Don't.

Repair_Man_Jack (Diary) Saturday, October 17th at 10:35AM EST (link)

About 1% of us deserve damnation. Those who know what’s going on, have known for at least two decades, and have shown no interest whatsoever in slowing the growth of entitlement spending or the mentality that accompanies it.

If 52% of the US deserved damnation, I’d have already brushed up on my Spanish and gone somewhere lush and tropical down South.

” I side impenitently with the human race against the modern reformer.” – C.S. Lewis

I'd quibble with those numbers, RepairMan.

janis (Diary) Saturday, October 17th at 11:12AM EST (link)

One percent is way too low. Yes, the politicians and those who batten off of them and their byproducts fall into that 1%, but there are millions more in this country who don’t love America and who loathe everything she has ever stood for, while still living here and reaping the rewards of of what used to be free markets and capitalism plus individual freedoms.

Those are the ones who knowingly and proudly elected what’s running this country into the ground and they fully deserve as much damnation as we can shove their way, were we to have the power to do so.

 
 
 

The whole "stimulus" was simply a lie anyway.

Achance (Diary) Saturday, October 17th at 10:33AM EST (link)

Though not pushed completely out of the trough as they should have been, Democrats have had limited stealing privileges since ’94 because of Republican oppression. GWB even went so far as to try to force salary and expense disclosure from the unions. Didn’t he know that NOBODY enforces that silly law?

The “stimulus” was to stimulate a specific set of Democrat constituencies and to make up for their “losses” during the dark days of Republican control. Now things like pimps and hos have kinda interfered with ACORN getting back on track with their walking around money, but they’ll just stand up another non-profit and funnel the money there – after a little training about how to talk to people who want to start up a whorehouse in the ‘hood.

In Vino Veritas

Art, Like I said Above.

Repair_Man_Jack (Diary) Saturday, October 17th at 10:36AM EST (link)

Nobody cares how the KC Chiefs got to 0-5. Corruption and incompetence accomplish the same disaster in the end.

” I side impenitently with the human race against the modern reformer.” – C.S. Lewis

But you act like this lot and those who support them

Achance (Diary) Saturday, October 17th at 10:50AM EST (link)

should care about waste and inefficiency; they live on it! They are actually very competent with corruption. Republicans are incompetent at it, get caught, and that’s how we became the “culture of corruption.” If Randy Cunningham had been a Democrat, he’d have set up a bunch of non-profits to “study” defense-related things, ear-marked a few billion to them every year, and hired a good accountant to rake off his piece into nice numbered accounts offshore. By now he’d be a multi-millionaire Senator instead of a convicted felon.

In Vino Veritas

When the there were a few Republican bad apples

Richard Mullins (Diary) Saturday, October 17th at 11:12AM EST (link)

the Democratic party instead of dealing with the fact that what the did was against the law, played politics. The other guys do it was a cover for their misdeeds. We that shouldn’t work on those that think, but too they figure it out and we are paying the price. As for getting rid of waste and inefficiency, both the Republican and Democratic congressman follow the Yasser Arafat rule of dealing with constituents, say one thing to them and then do something different. Also, we the people love free money(we’ll it’s really not free but that what being told).

Richard Phillip Mullins BlogThe Squash Satire SiteNews on Happy Jet Airlines
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Joe Biden is like a Decrepit Park owner with a Meth lab that happens to not only be a dealer but a user.

Let’s Bankrupt the Democratic paty. Make spend all the money to defend thier candidates.

 
 
 
 

At the risk of accepting

Uma Richie (Diary) Saturday, October 17th at 10:51AM EST (link)

a HuffPo premise, do you have a ballpark of how the “stimulus” compares against whatever Haliburton issue the left keeps waving in our faces? They overcharged for chow hall services, right? So Haliburton charged the taxpayer X for a dinner. The stimulus is the equivalent of Haliburton charging Y for a dinner. I just don’t know what X and Y are.

Anyway, thanks for your analysis. The 25:3 figure is great for repeating.

 

You can't through urine down a toilet and expect it to automatically come out clean drinking water

Richard Mullins (Diary) Saturday, October 17th at 11:19AM EST (link)

likewise you can’t toss money out and simply expect it to do anything. So what are we to expect all these years and especially now after tossing $787B out the door.

Richard Phillip Mullins BlogThe Squash Satire SiteNews on Happy Jet Airlines
Rmullins Pics
Rpmullins Twitter

Joe Biden is like a Decrepit Park owner with a Meth lab that happens to not only be a dealer but a user.

Let’s Bankrupt the Democratic paty. Make spend all the money to defend thier candidates.

At a ratio of 25:3...

Repair_Man_Jack (Diary) Saturday, October 17th at 11:53AM EST (link)

We get almost, but not quite $100Bn worth of stimulus out of a $787Bn package. It’s time to ask the stimulus-backers how’s that swamp condo working out?

” I side impenitently with the human race against the modern reformer.” – C.S. Lewis

But don't you know the magic multiplier will take care of everything

civil truth (Diary) Saturday, October 17th at 12:11PM EST (link)

I’m sure Paul Krugman has it all worked out in his economic sows-ears-to-silk-purses factory next to his fairy-dust-and-unicorns farm.

But wait until you see the wrap rate for Cap and Trade, That will blow these ratios out of the water, I suspect. In fact, we’ll probably have a negative wrap rate (or perhaps it’s an imaginary number – however you calculate a wrap rate for expenditures that cause job losses).

The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis

http://www.gmsplace.com/

M = 3/25 = 0.120

Repair_Man_Jack (Diary) Saturday, October 17th at 12:17PM EST (link)

That’s your multiplier, Civil. I guess I’d get a Nobel Prize for accidentally taking its inverse.

” I side impenitently with the human race against the modern reformer.” – C.S. Lewis

 
 

Well we are back to the roaring '20s all over again

Richard Mullins (Diary) Saturday, October 17th at 12:12PM EST (link)

that and the swamps and super progressive tax rates. Could have seen DOOM from miles away. 25:3 ratio means that 21 out of the 25 floats in the air and is a vapor.

Richard Phillip Mullins BlogThe Squash Satire SiteNews on Happy Jet Airlines
Rmullins Pics
Rpmullins Twitter

Joe Biden is like a Decrepit Park owner with a Meth lab that happens to not only be a dealer but a user.

Let’s Bankrupt the Democratic paty. Make spend all the money to defend thier candidates.

 

what does "wrap-rate" mean? - nt

Mike gamecock DeVine (Diary) Sunday, October 18th at 12:17PM EST (link)

Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson

Loaded cost per job where all the wages, benefits,

Achance (Diary) Sunday, October 18th at 12:37PM EST (link)

and all the indirect costs are calculated into the cost of a job. In this case, the indirect costs are the issue in that it is costing many multiples of the salary and benefits in indirect costs to put the job in the workplace.

In Vino Veritas

Include the graft and corruption costs paid

redneck_hippie (Diary) Sunday, October 18th at 12:58PM EST (link)

to put collectivists into power and call it the super wrap rate.


Activists Taking Action: Unified Patriots

 
 
 
 
 

Stick with the $500,000 per job number.

The_Gadfly (Diary) Monday, October 19th at 3:38PM EST (link)

Most people’s eyes (mine included even though I fight it) glaze over when you start talking wrap rates, directs, indirects, etc. But when you tell them every job “saved or created” cost $500,000 they want to know what the *#$%*$&! is going on.

BTW: I got $483,000 per job when I ran the numbers you provided, so I’m assuming there were some additional numbers after the 16 for your calculation. In any event, it is easier for people to remember half a mill than $483,000.