Systemic failures, such as waste, fraud and abuse in the Unemployment Insurance program, are so common that reports like this from Cato will pass by with a shake of the head. Government has become so large and involved in so many areas of our lives, it becomes more overloaded and inefficient everyday. Aside from the moral problem that government expansion of power erodes our freedoms, expansion of power is a practical problem. Government can't handle the responsibilities it has taken and voters have given it. As Leviathan grows and lumbers clumsily and destructively forward, Americans have to decide if they will sit passively by and allow government to destroy the nation or whether change will be made.
Statists who say government has always been inefficient and that this is the nature of government, something we have to accept if we want a large welfare state, are in denial. Statists say we can try to make government as efficient as possible, but it isn't a business, so some inefficency is expected and managable. However, we appear to have reached a tipping point. There's plenty of evidence that our statist system of government has overloaded the private sector, thus reducing the flow of funds necessary to pay for a large interventionist government. Between the regulatory agencies, welfare programs, military operations, border control, transportation, education, on and on, government has intruded so much in the private sphere it's devastated the market and free-flow of interactions regarding supply and demand.
Statists will tell you that government spending has decreased in the last couple of years, but government spending is not the fundamental problem. The fundamental problem is un-Constitutional interventions in the private sphere and unbridled interventions overseas. The State has grabbed power, and it's overwhelming the private sector. Cronyistic State Capitalism produces corporate/government enmeshment which enriches a power elite, but the market that should offer paths to properity for the middle class and those striving to move out of poverty has been frozen with uncertainty. Small businesses, innovative and creative developments are our future, but government has stopped movement forward, and it doesn't appear willing to let any power go. So, the welfare/warfare state grows, as does waste, fraud and abuse, and money coming into the government dries up -- the statist growth has to stop, and limits must be placed on government power.