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Culture War Roundup for the week of August 12, 2024

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During the conversation on X between Musk and Trump, they floated the idea of Musk leading a 'government cutting commission' or basically a setup where Musk would come in and cut the fat from the government.

This idea fascinates me, and while I'm sure there are all sorts of reasons it may be terrible, I fear that financially the U.S. may need to do something dramatic like this in order to get the debt under control, etc etc. Also I, along with many other mottizens, am just pretty bearish on the efficacy of most government. Especially federal officials.

The question for me is - how would this work? Which areas do you think would get cut the most? (education was mentioned here specifically) Which areas are critical and should remain mostly untouched? (post office?)

On top of that, if this were to happen, what would be the primary blockers? Do you think Elon is the right man for the job without political connections? Are there ways in which the President can be prevented from firing large swathes of the federal admin? Potential disasters that could happen if critical employees are in fact fired?

This will be very difficult, for two major reasons:

  1. Government operates based on rules, while private entities operate based on performance. Your boss can fire you if you're ineffective. The government can only fire you if you don't follow the rules. It's easy to follow the rules and still be ineffective. So government relies on constructing the right rules to achieve its ends, and we don't even agree on the ends, much less the specific rules. The rules end up being byzantine tomes of regulations that no one understands. So there's tons of intractable inefficiency that cannot be addressed. Musk would have to somehow make government employment contingent on performance rather than rules.
  2. More importantly, efficiency requires making costs and benefits explicit and commensurable so tradeoffs can be made. People hate making money commensurable with lives, happiness, or other sacred values. Even conservatives use terms like "death panels" when this topic comes up. Any cost-cutting that comes at the expense of a few hours at the end of a few peoples' lives, or of the academic success of a few economically disadvantaged children, is going to be raised as a fatal flaw in the whole endeavor, regardless of how many billions of dollars were saved. Musk would need to sidestep this issue somehow.

My best idea for solving #2 is to give people a choice to accept a payment to forgo a government benefit. For example, instead of government-dictated healthcare provided by your employer, you're allowed to opt out in return for $X, where $X is less than the average cost of the healthcare plan. This of course is distasteful to supporters of government healthcare, because they want the costs to be socialized. Adverse selection will cause people who are healthy to opt out etc. The same adverse selection follows for other kinds of government benefits, such as education with school vouchers. In the limit, the people remaining receiving benefits would be precisely those who take out more than they put in, and this would highlight the cost everyone is paying to support those people. The existing system obfuscates who is causing the high costs.

For example, instead of government-dictated healthcare provided by your employer, you're allowed to opt out in return for $X, where $X is less than the average cost of the healthcare plan.

The problem with that is that people will take the money, spend it, and then we'll see a parade of sad little kids on CNN whose parents can't afford medical treatment, and then the government will have to either pay for the medical treatment anyway (encouraging people to take advantage and raising the costs), or they'll have to go on CNN and publicly declare "fuck the kids", which they won't.

You could, trivially, cover basic healthcare for all the children in the country and waive everything else. I think Harris county's gold card system works a bit like this- hospitals will always be reimbursed for the health care they aren't allowed to deny+basic preventative, and it saves money in the big picture view.