jueves, 1 de abril de 2010
Tighter Government, One Nudge at a Time
The federal government may have a reputation for being a bit slow and bloated, but a new concept, the President's SAVE award, hopes to change some of that. Begun in 2009 by the Office of Management and Budget (OMB), it's "a contest for federal employees to come up with the best idea to save taxpayer dollars and make the government perform more effectively and efficiently." (Where was this program when John Szilagyi needed it?) During the first submission window, the OMB received nearly 40,000 ideas within three weeks; the best ideas were passed to the appropriate government agencies. One idea is already bound for implementation: the Department of Homeland Security "announced that it is changing the default setting for its payroll statements from paper to electronic ... By making e-statements the default option, while giving employees the option to opt out in favor of the paper statement, we hope to increase the percentage of federal employees who use this approach while saving the taxpayers
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Yippee. In other news, I've decided to start a new diet - switching from extra mayo to just regular mayo on my double bacon cheeseburgers. I should be ready for bathing suit season in no time.
ResponderEliminarHow about this? Government agency double bills the taxpayer and blame it on a private contractor = interest free loan.
ResponderEliminarsignonsandiego.com/news/2010/mar/31/double-billing-property-tax-blamed-glitch/
They don't issue refunds right away saying they can't find the taxpayer but when you owe money there's no place in h*ll they will not search for you. Isn't this wonderful for short-term cash float?
Unless, out of sheer bloody-mindedness, they decide en masse that they preferred paper statements after all. Isn't nudge economics supposed to be all about people doing irrational things?
ResponderEliminarMy favourite personal example of nudges having the opposite of the desired effect is the recycling of mobile phones. Three years ago, all I got for it was a warm fuzzy, so I was glad to do it, although it took a bit of effort. Now, with multiple websites clamouring to offer me money for my old phone (if that's not a nudge, I don't know what is), I got as far as comparing the first three prices, thinking "is that all I get?" and giving up altogether...
This is a great idea, and a great first step. I'm impressed -- and admittedly surprised -- that so many ideas were submitted in such a short window of time.
ResponderEliminarThe IRS has had programs like this for years. Is this actually new at OMB?
ResponderEliminarMike--bravo.
ResponderEliminarLarge cost savings will never be realized through this because large costs are always politically motivated. That leaves us with small cost savings... and I wonder how much savings we'll actually see once the cost of accepting and reviewing and implementing all of these suggestions is accounted for.
ResponderEliminarMy guess is that this will result in positive feelings for those who think they've contributed (and who more delusionally think the government is listening), but the overall budget won't see any real changes.
"Government... we can make you feel good even when you're getting screwed!"
Here's an idea to trim waste.
ResponderEliminarEveryone in every agency, department, division, bureau, etc. stands up and counts off 1 and 2. The 1 is fired and the 2 keeps their job.
Then every remaining head of a department, division, agency, bureau etc. stands up and does it again.
Lee it is great to see that Goverment is learning from credit card companies, banks, Insurance companies, phone companies, cable and power companies - that is the kind of free market innovation this country needs - overbilling customers and then not telling them about it, upping rates for no reason, creating obscure and confusing pricing, and piling on penalites for minor transgressions - yes companies are always more efficient than the government in fleecing people of their money - that why we need less goverment regulation, it destroys "value" created by fleecing the suckers.
ResponderEliminarA major company gasoline credit card has started charging me $5.00 to send me a paper statement. I kind of like my paper statements, so I now only use the card every few months to keep the account open. Five bucks seems excessive and, in my case, has had a negative result.
ResponderEliminarI can pretty much assure you that the government will spend more money reviewing the cost saving ideas than will ever be saved through the implementation of any of them.
Dang Ray, you beat me to it! Cut 50% and the gov't will save a bundle.
ResponderEliminar@Dr J
ResponderEliminarYeah, but if Verizon screws me on my high speed internet bill I can switch to Comcast. If the government screws me on my taxes, they just get to screw me again next year and there's nothing I can do.
Brett - You beat me to it!
ResponderEliminarMy favorite argument from those for bigger government is the fact that 90% of businesses fail within the first year, so the free market can't be that good. Well, if 90% of government programs run a deficit in the first year, guess what, instead of "going out of business", we're stuck with them.
@Brett
ResponderEliminarYou live in a representative democracy. How about you and all the other government complainers stop whining and do something about it. If you know so damn much about saving the government money, run for office.
Or, if you don't want to take part in your democracy, you're always free to try to find a country that's more efficient.
As a long time government worker I was often appalled at waste and did a great deal to change it.
ResponderEliminarBut whenever I associated with private sector businesses at conferences and educational settings, I was even more appalled at their waste. I learned that it is a function of attitude and management, not job sector. We, collectively, as a tribe, always value our own whatever ore than that of the other guy. That's why 75% of any group of parents say our schools are failing, but 80% of the same parents say the school *their* child attends is great.
So whenever I hear complainers talkng about the government I am reminded that they work in places that have made waste a watchword - they're always willing to watch what others do, not themseelves.
@Kevin
ResponderEliminarIf I were railing on a corporation instead of the government would you be as critical?
If a corporation screws me over I vote with my dollars and let other people know what happened.
If the government screws me over I vote at the ballot box and let other people know how I feel.
The difference is that my effects on a corporation can be immediate, I can usually make an instantaneous break from any corporation, but I only get a chance to vote for new representation every couple of years. Even then I only get the effects I desire if my vote jibes with the majority, and if a supposedly promising candidate then turns out to be corrupt and screws me over again I'm stuck with him/her for the next few years.
This is exactly why government should be as limited as possible. Government is necessary, but it will invariable disappoint so let's make it as small as possible so that the disappointment is as minimal as possible.
It's about time this spread to the Fed as a whole. The FAA has had incentive programs like that for years. I know several employees who've gotten awards for ideas that got implemented. Also, numerous federal agencies have used "Employee Express" online for several years. Employees have their pay statements and numerous other functions online. If they want a paper copy, they can print it themselves. I'm not sure why somebody in Homeland Security thought this was a new idea.
ResponderEliminarI believe this is a great thing. I'm just curious to know what the heck took so long? Using the leverage of multiple brains to come up with ideas to save dollars is common sense. It's the same concept of using bird-dogs in the real estate business, or employees in any business in general. You get more done.
ResponderEliminar