Large cost overruns are commonplace in government construction projects, procurement, and entitlement programs. Politicians and officials routinely deceive taxpayers by low-balling cost estimates to win initial spending approval. Then, when programs go over budget and do not work as promised, politicians place the blame on particular management blunders by the bureaucracy and private contractors. But the evidence indicates that cost overruns and program failure are not isolated errors; they are systematic and widespread in the federal government.
Two Examples
Boston "Big Dig" Estimate: $2.6b (1985). Cost: $14.6b (2002)
Denver International Airport: Estimate: $1.7b (1989). Cost: $4.8b (1995)