The Iron Law of Bureaucracy

The founders of this country knew without doubt that the federal government MUST BE limited and tightly controlled by competitive offsetting factors, and they knew it should NOT be directly involved in commerce or welfare…such as a king and his lords were in Europe and elsewhere.  For example, the founders refused to use government money for schools, but they built them themselves with their own money.

Article 1 Section 8 Clause 1 of the Constitution: “To lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.” Definition of General Welfare: “Exemption from any unusual evil or calamity; the enjoyment of peace and prosperity, or the ordinary blessings of society and civil government.” (Webster’s American Dictionary of the English Language, 1828).  The Constitution does NOT authorize the gov’t to write a welfare check to a citizen, nor find a job for a citizen, nor create commerce. Democrat FDR redefined the general welfare clause by dominating the Supreme Court in 1937.

The iron law of bureaucracy guarantees (1) that all government agencies will grow until they become inefficient and unable to accomplish their original intent, and (2) that the mission of the politicians and bureaucratic administrators running those government agencies will become sustaining and growing their budget and their agency, so that their own power and prestige increases and (3) they will not be working for the original legislated intent of the agency, but instead, they will be found to be working against the original intent or causing damage which the legislation sought to prevent.

To wit: the Federal Reserve Act of 1913 which created the Federal Reserve Bank was intended to protect the value of the dollar, maintain stable prices, and prevent the so-called “money trust,” (that is, prevent control of financial wealth and political power by a powerful few.) Yet today, in 2012 the dollar has already lost nearly 100% of its value (prices of everything are many multiples of 1913 prices) and a powerful few banks and bankers have been bailed out by the government, are considered too big to fail, and they carry financial derivatives risk 20 times the annual GDP of the entire U.S. economy, a level of risk that has doubled since a Democrat controlled Congress and Obama passed the Dodd Frank Financial Reform Act.

The progressives’ version of the Federal Reserve Act passed Congress on December 19, and President Wilson (Democrat) signed it December 23, 1913. Democrats controlled both houses of Congress and the White House. Wilson later said it was his worst mistake. “A great industrial nation is controlled by its system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world–no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men.” –President Woodrow Wilson

The U.S. Government Accountability Office (GAO) recently completed the first audit of the Federal Reserve in 100 years.  The audit revealed $16 trillion in secret loans. The Federal Reserve refers to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest.  This $16 trillion dollars is on top of the $16 trillion U.S. federal debt.

The federal government has lost billions of dollars each year trying to run AMTRAK and the U.S. Post Office.

Even with all of this evidence, some people still believe that the federal government can “reduce the cost and improve the quality of healthcare” through Obamacare.  But those true believers are not in the government.  Those inside the government understand the Iron Law of Bureaucracy.  http://www.jerrypournelle.com/reports/jerryp/iron.html

Even worse, some people believe that evolving sovereign control of government by citizens into a supranational bureaucracy for world government, exemplified by the European Union, is the path to the future.  The UN’s Agenda 21 and Law of the Sea is already being implemented all around us from zoning in local communities to international laws.  NOAA and other agencies are already implementing and preparing to implement several treaties and agreements through the President’s several Executive Orders to harmonize and standardize the U.S. with international rules.

And yes, it is the Iron Law of Bureaucracy that is damaging the fishing industry in Gloucester and allowing the mismanagement of wildlife, environment, natural resources, the general welfare and commerce.

Reference:

http://www.jerrypournelle.com/reports/jerryp/iron.html

GAO Report: http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144

Senator Barney Sanders’ statement regarding the GAO Report: http://www.sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

http://www.zerohedge.com/sites/default/files/images/SeanMaloneRiseFallDollarLarge.jpg

Year                   CPI Index     Dollar Value     Inflation        History

1913 29.7 $1.000 2.8 ** Federal Reserve Act
1914 30.1 $0.987 0.9 WW-I begins
1915 30.4 $0.977 1.8
1916 32.7 $0.908 7.1
1917 38.4 $0.773 17.4 U.S. enters WW-I
1918 45.1 $0.659 17.6 end WW-I; influenza epidemic
1919 51.8 $0.573 15.0 influenza epidemic — ( epidemic list)
1920 60 $0.495 15.6 recession
1921 53.6 $0.554 -10.4
1922 50.2 $0.592 -6.5
1923 51.1 $0.581 1.6
1924 51.2 $0.580 0.5
1925 52.5 $0.566 2.1
1926 53 $0.560 1.0
1927 52 $0.571 -1.5
1928 51.3 $0.579 -1.6
1929 51.3 $0.579 0.0 Great Depression — through 1930’s
1930 50 $0.594 -2.6
1931 45.6 $0.651 -8.6
1932 40.9 $0.726 -10.7 New Deal
1933 38.8 $0.765 -4.6 Third Reich
1934 40.1 $0.741 3.5
1935 41.1 $0.723 2.0
1936 41.5 $0.716 1.3
1937 43 $0.691 3.2 recession
1938 42.2 $0.704 -1.9
1939 41.6 $0.714 -1.3 invasion of Poland – WW-II
1940 42 $0.707 1.3
1941 44.1 $0.673 4.5 Pearl Harbor – U.S. in WW-II
1942 48.8 $0.609 11.0 baby boom (~1940 – 1957)
1943 51.8 $0.573 6.1
1944 52.7 $0.564 1.6
1945 53.9 $0.551 2.6 end WW-II
1946 58.5 $0.508 8.5 ENIAC — computer
1947 66.9 $0.444 14.3
1948 72.1 $0.412 7.7
1949 71.4 $0.416 -1.1
1950 72.1 $0.412 1.1 Korean War
1951 77.8 $0.382 7.9
1952 79.5 $0.374 2.1
1953 80.1 $0.371 1.0 end Korean War
1954 80.5 $0.369 0.3
1955 80.2 $0.370 -0.3
1956 81.4 $0.365 1.3
1957 84.3 $0.352 3.7 baby boom peak
1958 86.6 $0.343 2.9 U.S. space program begins
1959 87.3 $0.340 0.6 Integrated CircuitVietnam war
1960 88.7 $0.335 1.9
1961 89.6 $0.331 0.9
1962 90.6 $0.328 1.2
1963 91.7 $0.324 1.2
1964 92.9 $0.320 1.2
1965 94.5 $0.314 1.7
1966 97.2 $0.306 2.9
1967 100 $0.297 2.8
1968 104.2 $0.285 4.3
1969 109.8 $0.270 5.4
1970 116.3 $0.255 5.9
1971 121.3 $0.245 4.2
1972 125.3 $0.237 3.3
1973 133.1 $0.223 6.3 Arab oil embargo
1974 147.7 $0.201 11.0
1975 161.2 $0.184 9.1 personal computer; end Vietnam war
1976 170.5 $0.174 5.7
1977 181.5 $0.164 6.5
1978 195.4 $0.152 7.7
1979 217.4 $0.137 11.2 oil crisis — Iranian revolution
1980 246.8 $0.120 13.5
1981 272.4 $0.109 10.4
1982 289.1 $0.103 6.1
1983 298.4 $0.100 3.2
1984 311.1 $0.095 4.3
1985 322.2 $0.092 3.6
1986 328.4 $0.090 1.9
1987 340.4 $0.087 3.7
1988 354.3 $0.084 4.0
1989 371.3 $0.080 4.8 Berlin Wall falls
1990 391.4 $0.076 5.5
1991 408 $0.073 4.2 USSR dissolvedPersian Gulf War
1992 420.3 $0.071 3.0
1993 432.7 $0.069 3.0
1994 444 $0.067 2.6
1995 456.5 $0.065 2.9
1996 469.9 $0.063 2.9
1997 480.8 $0.062 2.4
1998 488.3 $0.061 1.6
1999 499.1 $0.060 2.2
2000 515.8 $0.058 3.3
2001 530.1 $0.056 2.8 Islamic attack on U.S. (9-11) [ 1 ] [ 2 ] [ 3 ] [ 4 ]
2002 538.8 $0.055 1.7 (Oct. 2001) Invasion of Afghanistan
2003 551.1 $0.054 2.3 Invasion of Iraq
2004 565.8 $0.052 2.7 oil price increases
2005 585.1 $0.051 3.3
2006 603.9 $0.049 3.1
2007 621.1 $0.048 2.9
2008 645 $0.046 3.9
2009 642.7 $0.046 -0.4
2010* 651.7 $0.046 1.4

About budbromley

Life sciences executive, retired
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