The Senate Gets an Overdue Economics Lesson

Despite having a prime location, the US Senate's restaurant operation has been steadily losing money and even a substantial $18 million subsidy from the taxpayers was not enough. It seems to have suffered from substandard food and an overly generous salary and benefit structure.    

The solution: according to the Washington Post, it will now be privatized. It is anticipated that despite being required to maintain for existing staff the ridiculously high compensation package, it soon will be paying the Senate $800,000 a year in commissions.

The House wised up faster than the Senate did. It privatized its food service decades ago, and instead of paying subsidies to keep it afloat, receives $1.2 million in commissions to the House since 2003.


Despite having a prime location, the US Senate's restaurant operation has been steadily losing money and even a substantial $18 million subsidy from the taxpayers was not enough. It seems to have suffered from substandard food and an overly generous salary and benefit structure.    

The solution: according to the Washington Post, it will now be privatized. It is anticipated that despite being required to maintain for existing staff the ridiculously high compensation package, it soon will be paying the Senate $800,000 a year in commissions.

The House wised up faster than the Senate did. It privatized its food service decades ago, and instead of paying subsidies to keep it afloat, receives $1.2 million in commissions to the House since 2003.