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’ money.” We have truly entered the Land of the Nudge. (HT: Zeke Emanuel)
Tighter Government, One Nudge at a Time
TAGS: government
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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.
How about this? Government agency double bills the taxpayer and blame it on a private contractor = interest free loan.
http://www.signonsandiego.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?
My 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.
The IRS has had programs like this for years. Is this actually new at OMB?
Mike–bravo.
Large 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.
My 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.
Everyone 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.