Tag Archives: government

What did DOGE actually do?

This article is by David Walker, a former US Comptroller General.

Contrary to assertions by some, DOGE has not conducted audits. Rather, it has performed targeted and tactical transaction reviews of selected government information systems using artificial intelligence capabilities.

Its objective has been to identify possible fraud, waste, abuse and mismanagement in an effort to cut federal spending. Musk announced a goal to save $2 trillion, but this was later reduced to $1 trillion and then to $500 billion, which has still proven to be overly optimistic. DOGE now claims to have achieved about $160 billion in savings, but this number may be significantly overstated based on the evidence provided…

While DOGE has so far fallen far short of any of its financial goal, it has brought some important things to light. For example, it has uncovered a number of concrete examples of significant waste in the federal government, and it has re-exposed many of its operational problems, such as outdated information systems and inadequate internal controls. A vast majority of these operational problems were previously identified by the Government Accountability Office and various inspectors general.

So, they just tried to feed all the government’s data into an AI and identify some waste, fraud, and abuse. On the face of it, it doesn’t seem like such a terrible job to do that routinely, or just add it to the audit toolbox as this guy is suggesting. So why all the drama and general crazy?

It occurs to me though that the approach was shockingly ignorant in many ways. They seem to have assumed that nothing the government does has any benefits, only costs, and therefore any reduction in spending would be a savings. Government accounting in general does not distinguish between spending and investment, which has always been a problem. I could “save” money by not going to the dentist any more, for example, but I would pay for it many times over both in money and pain sometime in the not too distant future.

The Clinton-Gore administration executed a rational, effective, and somewhat brutal government efficiency campaign in the 1990s. You can hear about it on Planet Money: The Last Time We Shrank the Federal Workforce.

Rationally speaking, the government should step in to improve citizens’ lives where private markets are obviously not able to deliver, like on health care, child care, education, fundamental research, unemployment and disability insurance, and retirement. It should create a level playing field for businesses large and small, regulate anticompetitive practices, set minimum labor and environmental standards, maintain public safety, and provide for the common defense. It should use a portion of the value added by a healthy economy to do these things, which reinforce the healthy economy in a positive loop. I’m not a genius tech bro but these things are obvious to me.

Jack Goldstone

Here’s a long interview with Jack Goldstone in Salon, who wrote the 1991 book Revolution and Rebellion in the Modern World. His basic idea was that when “selfish elites” starve the government of resources, things get hard for ordinary people (from the poor to the upper middle class, I would say), and that is when revolutions can happen. He says when a society mostly consists of older, less educated people in a stagnant income situation (like former Soviet socialist republics), revolutions are more likely to be peaceful and focus on reform. When a society has more young, educated people in an economic freefall, that is when violent revolutions are more likely to happen. His vision of a stable society is one where elites agree to share the wealth somewhat to promote stability, then they educate and develop cohorts of future elite leaders. Too many educated people chasing too few elite roles is dangerously unstable, in his view. A thought that occurs to me (not in the artcle) is you can see a basis for the emphasis on STEM – educated people in a narrow way that allows them to earn a living and contribute to the larger economy, without the likelihood of them becoming politically active.

The solutions he offers are non-partisan problem solving in Congress, blue ribbon panels, and “citizen assemblies”. It’s a long article and my thoughts above barely scratch the surface.

By the way, here is what a “citizens’ assembly” is according to Wikipedia:

A citizens’ assembly (also known as citizens’ jury or citizens’ panel or people’s jury or policy jury) is a body formed from citizens or generally people to deliberate on an issue or issues of local or national or international importance. The membership of a citizens’ assembly is randomly selected, as in other forms of sortition. It is a mechanism of participatory action research (PAR) that draws on the symbolism, and some of the practices, of a legal trial by jury. The purpose is to employ a cross-section of the public to study the options available to the state on certain questions and to propose answers to these questions through rational and reasoned discussion and the use of various methods of inquiry such as directly questioning experts. In many cases, the state will require these proposals to be accepted by the general public through a referendum before becoming law.

e-Estonia

Estonia is supposedly the most digitally advanced country in the world. Here’s a 2017 article from the New Yorker:

E-Estonia is the most ambitious project in technological statecraft today, for it includes all members of the government, and alters citizens’ daily lives. The normal services that government is involved with—legislation, voting, education, justice, health care, banking, taxes, policing, and so on—have been digitally linked across one platform, wiring up the nation…

Its government presents this digitization as a cost-saving efficiency and an equalizing force. Digitizing processes reportedly saves the state two per cent of its G.D.P. a year in salaries and expenses. Since that’s the same amount it pays to meet the nato threshold for protection (Estonia—which has a notably vexed relationship with Russia—has a comparatively small military), its former President Toomas Hendrik Ilves liked to joke that the country got its national security for free…

The program that resulted is called e-residency, and it permits citizens of another country to become residents of Estonia without ever visiting the place. An e-resident has no leg up at the customs desk, but the program allows individuals to tap into Estonia’s digital services from afar.

The New Yorker

A 2% boost to GDP seems like a pretty big deal to me. It’s a pretty clear example of how well-functioning government can provide a platform and level playing field for the economy to thrive. I can imagine this potential being even larger in the U.S. where everything is so decentralized and inefficient, even at the metro scale. Of course, this very inefficiency keeps a lot of people busy that would need to find something else to do if it went away.

Apparently anyone can apply to be an e-resident, and it allows you to essentially do business as though you were from, or in, Estonia. You can also hire them as consultants, of course.