Friday, February 13, 2009

Obama Spreads PPP's and P4P in Federal Sandwich

Rather than peanut butter and jelly, President Obama plans to solve the ills of America with public-private partnerships and pay for performance.

The first move is a sly one. Transportation Secretary Ray LaHood said the stimulus package provides up to $30 billion for highway construction. President Eisenhower spent over $500 billion on highway infrastructure.

Why the pittance from President Obama? Because, the private sector has $200 billion slated for investment in public infrastructure. The Obama team loves public-private partnerships (PPP), almost as much as George W. Bush.

Treasury Chief Tim Geithner announced he would bankroll private entities, those in our shadow banking system. Public-private investment entities would purchase the cyanide laced securities from banks, insurance companies, and whoever else Tim Geithner and Ben Bernanke certify. PPP's happen to keep the green flowing to lobbyists, elected leaders and their respective political parties.

Whether private or governmental, poor leadership makes an organization ineffective. Bad management theory is the cause. People suffer from decades of haplessness and cluelessness in board rooms, the Capital, and the White House.

If PPP's are concerning, wait for pay for performance (P4P). P4P will invade education and health care. Executive incentive pay and commissions produced garbage investment products, which eroded the foundation of Wall Street. Think what it'll do for hospital care or children's education. Pppppfffffttttt!

President Obama, between PPP and P4P which is the salmonella tainted peanut butter and which the lead contaminated jelly? Spread at America's risk.

Update: Federal bank regulators received millions in bonuses, despite missing signs of the financial system meltdown.

Update 4-16-11:  Naked Capitalism tackled P4P, throwing it nicely to the dirt.

Update 4-26-12:  Another bloody nose for P4P in the VA Medical System.   The toxic daisy chain is ready to explode in health care.  Expect widespread cheating and sub-optimization.

Update 4-20-14:  Chicago crime statistics were fudged under Mayor Rahm Emanuel, a longtime proponent of bribing people to do their job.  The drop puzzled Chicago citizens and police officers.

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