Thomas Frank in the Wall Street Journal notes the political nature of the release of this report. Senator Grassley (and others) clearly sought to use the data to knock the SEC down a notch right when Democrats on the hill were pursuing legislation that would further empower federal regulators. I.e., if SEC lawyers have eight hours a day to surf for porn, do we need to be further empowering, funding, and staffing up the SEC?
Frank is right, in an important sense. This story only got any ink because of the salacious hook that "while the economy burned, SEC staffers were burning with lust." Frank rightly contends that the fact that there are a few bad apples surfing porn at a federal regulator is no real argument to oppose new or different regulatory powers.
But lets parse this further. The real news here is that federal employees pulling down six figures have eight free hours a day during which to pursue personal hobbies, whether they be adult or otherwise in nature. But this is dog bites man story. The only reason Grassley et al got any ink is because they were able to link it to economic disaster and current policy debates.
And today we learn that none of these employees have been fired. And this is the real key to this story. Federal employees are no more inclined to surfing porn than anyone else; I'm sure the private sector has its share of stuffed suits who spend hours a day viewing visual crack in the corner suite. But, how many of them, when caught in the act, would still be in their jobs months, or years, later?
The problem with the federal bureaucracy is that the civil service has little to fear. Their positions are practically impervious. This doesn't mean that federal bureaucrats are bad people, but it means that they are poorly managed. The threats and incentives that help keep private sector employees in line are largely missing. The resultant culture encourages the worst in human nature.
Are there more people surfing porn per capita in the government than in the private sector? I'm willing to bet there are.