Waste, Fraud, and Abuse: The Convenient Scapegoat Undermining the Public Good

In nearly every budget debate or campaign season, some politician inevitably resorts to the same rhetorical cudgel: "We need to eliminate waste, fraud, and abuse."

The public has heard this messaging so often that it hardly registers as spin anymore. However, the real danger is not rhetorical fatigue. Politicians increasingly use this catchall phrase to justify deep and often damaging cuts to essential public programs under the guise of efficiency and fiscal responsibility. Moreover, the phrase suggests that government dysfunction is uniquely excessive, conveniently ignoring comparable – and sometimes worse – inefficiencies in the private sector.

Government Waste: Real, but Rarely the Root Problem

No one claims the government spends every tax dollar perfectly. In a vast federal budget nearing $7 trillion, errors and mismanagement occur, but scale matters. According to a 2021 report by the Government Accountability Office (GAO), the estimated total for improper payments, including fraud and administrative errors, was about $281 billion. That’s a lot of money and highlights the need for improvement, but in absolute terms, it’s approximately 4% of the federal budget.

Even that number can be misleading. Improper payments include missing documentation or timing errors, not fraud – for instance, much of the inappropriate spending in Medicare and Medicaid results from paperwork issues.

Government programs are also subject to ongoing review and evaluation. Agencies like the GAO and Offices of Inspector General across departments conduct hundreds of audits each year, issuing corrective recommendations and triggering recoveries. In short, the system is designed to detect and address waste, unlike many areas of the private sector, where transparency is optional. It’s alarming, however, that mass firings of inspectors general by this administration will undermine a key mechanism to ensure proper oversight. 

The Private Sector's Glass House

Now compare this to corporate America. Fraud and abuse in business are often widespread and lucrative… until the bubble bursts.

Major scandals, such as Enron, Theranos, Wells Fargo's fake accounts, and Purdue Pharma's opioid deception, show how corporate fraud can persist with little scrutiny. According to the Association of Certified Fraud Examiners (ACFE), the typical organization loses 5% of its annual revenue to fraud, and global losses are estimated at $4.7 trillion per year. 

Even beyond fraud, businesses waste billions on ineffective strategies, failed mergers, excessive executive compensation, and short-term thinking. One infamous example is WeWork, which burned through $11 billion in private funding in just a few years with little to show for it.

Misusing the Phrase to Shrink Government

So why is "waste, fraud, and abuse" such an effective – and dangerous – phrase in politics? Because it creates the illusion that deep cuts carry no real consequences, politicians propose slashing food and housing assistance, healthcare, education, research, housing, and environmental protections while claiming they're merely cutting waste.

Consider the Supplemental Nutrition Assistance Program (SNAP). Critics often mention fraud as a reason to cut benefits; however, the USDA reports that SNAP's fraud rate is less than 1.5%, and the overall payment error rate is under 7%. Most fraud cases involve retailers rather than individual recipients.

Or consider Social Security. According to the Social Security Administration's Office of the Chief Actuary, the program's administrative overhead is under 1% of total outlays, making it vastly more efficient than private insurance providers, which routinely spend 15% or more on overhead.

The High Cost of Reckless Cuts

The political appeal of targeting "waste, fraud, and abuse" is that it promises a win-win: cutting spending without hurting people. But in reality, many recent and proposed cuts – especially in science, education, health, and environmental protection – impose enormous costs on the country, both immediately and over time.

In early 2025, Congress framed cuts to NIH and NSF funding as fiscal restraint. The actual result has been a spike in lab closures, layoffs among research staff, and a growing exodus of early-career scientists to Europe, Canada, and Asia. The long-term cost of this brain drain will be fewer breakthroughs in cancer, Alzheimer's, climate science, and dozens of other vital areas.

The Department of Education (DOE) doesn’t stand behind education. The Department of Health and Human Services (HHS) is weakening the public health and our global position as the leader in medical research. The Environmental Protection Agency (EPA) is failing to protect the environment. An internal report states that the Federal Emergency Management Agency (FEMA) is unprepared for emergencies. The Federal Bureau of Investigation (FBI) is dropping its investigations into government corruption and fraud. The list of these outrageous ironies goes on. 

When the US halts investment in its capacity, it loses more than just money on a balance sheet; it loses its way. People are left behind, and time, trust, talent, and opportunities are wasted.

Yes, let's reduce inefficiency and prosecute fraud. But let's also acknowledge the value and accountability inherent in public programs and resist lazy narratives that advance political agendas more than serve the public interest.

Ultimately, using "waste, fraud, and abuse" as a pretext for cutting social investments isn't about good governance. It's about avoiding hard choices and masking bad ones.