It seems that the Washington Post is reporting that the Senate restaurants having been losing boat loads of money for years and that the Senate passed in a voice vote to privatize the businesses. Here is the best part:
“The House is expected to agree — its food service operation has been in private hands since the 1980s — and President Bush‘s signature on the bill would officially end a seven-month Democratic feud and more than four decades of taxpayer bailouts.
Sen. Dianne Feinstein (D-Calif.), chairman of the Rules and Administrations Committee, which oversees the operation of the Senate, said she had no choice.
“It’s cratering,” she said of the restaurant system. “Candidly, I don’t think the taxpayers should be subsidizing something that doesn’t need to be. There are parts of government that can be run like a business and should be run like businesses.”
And just when you thought it couldn’t get any better:
“But Sen. Robert Menendez (D-N.J.), speaking for the group of senators who opposed privatizing the restaurants, said that “you cannot stand on the Senate floor and condemn the privatization of workers, and then turn around and privatize the workers here in the Senate and leave them out on”
The article continues to explain that the Senators moved over to the House side to eat because they had better food. The house privatized a while back. This is what us Economists like to call the substitution effect.
The rest of the article can be found here.
And I am a little late but HT: Dr. Tabarrok here.