Congressman John Campbell's Blog - Green Eyeshade Blog

Monday, June 09, 2008

Posted by: John Campbell at 4:38 PM

Since 1993, the Senate side restaurants have lost more than $18 million and it is estimated that the cafeterias have lost as much as $2 million already this year, and without a $250,000 subsidy from taxpayers, the Senate won't make payroll next month.

I know this may seem like something of pure fantasy, but I assure you it is true, and yet another example of government mismanagement.

Last week in a late night voice vote, the Senate passed a measure agreeing to privatize its restaurants and cafeterias. According to GAO, the Senate Restaurants bring in more than $10 million a year in food sales but have turned a profit in only seven of the last 44 years in operation.

Senator Feinstein (D-CA), blames the poor quality of food, but I am inclined to believe, as is the case in many government endeavors, the lack of entrepreneurial incentive contributes to poor food quality, high prices, and eventually the need for more government subsidy.

Senators needn’t look far for confirmation of a successful example of privatization; the House privatized its cafeterias in the 1980s, and since 2003 has turned a profit of roughly $1.2 million.

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Steven writes:	Monday, June, 09, 2008 4:55 PM
Privatizing the Senate Restaurants
Although I strongly oppose privatization if it means the workers will thet the shaft through lowered wages, benefits and barred from being able to join a union should they stay on with the new firm. As I understand it, the settlement is a lot fairer than what many school cafeteria workers, who are mostly women, (i.e. "Lunch Ladies") face when their jobs have been "privatized" in order to "effect savings." The savings seldom materialize because many of the same school committees who use kids and saving teachers' jobs invariably find ways to blow whatever savings on nonessentials. I want to thank you for not criticizing the workers. But please in the future, remember to mention that most of the food is often outsourced portions prepared ahead of time. The burden with massive losses rests with management.
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Ope writes:	Monday, June, 09, 2008 9:17 PM
Privatization works, government loses
John, get yourself to a lab and get cloned. We need more like you in office.
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About John Campbell

John Campbell is a member of the House Financial Services Committee, and has taken a leadership role in addressing the country's top economic issues. Campbell serves as a member of the Joint Economic Committee, and House Committee on the Budget. He has a Bachelor's Degree in Economics from UCLA and a Master's Degree in Taxation from USC.