Government Efficiency and Sludge

The US Government Should Reduce "Time Taxes"

The project for “government efficiency” is, and should be, focused on many domains. Here is one that is easy to neglect: sludge, consisting of administrative burdens, or the many frictions that are taking a toll on the economy, on innovation, on public health, and on individual lives.

Sludge could easily be a villain in a Stephen King novel, or in an Avengers movie. It includes waiting time; paperwork burdens; in-person interview requirements; ridiculous forms; answers that are not forthcoming; and websites that are simply incomprehensible.

Sludge imposes a time tax on the American people. It impairs growth. It reduces development. Does it contribute to the housing shortage? No doubt about it. (It can be pretty hard to get the required permissions.) Does it contribute to inflation? Absolutely. (Sludge creates shortages; consider occupational licensing restrictions.) Does it impair health? Definitely. (Some people have a tough time getting cancer screening, because of sludge.)

Does it hurt wealthy people? Sure. Does it hurt the most vulnerable people? Sure again, and in some domains, it hurts them most of all.

Does sludge cost money? A lot. Billions of dollars. (Many billions of them.) Does it impose nonmonetary costs? Definitely. It creates frustration and a feeling of humiliation. It makes people feel as if their time doesn’t count - as if they don’t count.

The good news is that in recent years, there have been serious efforts to reduce sludge, and they are working. In some states, you can renew your drivers’ license in what feels like a minute. Global Entry eases international travel (and it’s better now than it was a decade ago). TSA Precheck eases domestic travel (and it’s also better now than it was a decade ago). You can now renew your passport online, and it’s easy. In recent years, some parts of the government, including the Department of Homeland Security, have substantially reduced time taxes.

So we do have efforts and models on which to build. For the future, here’s a place to start. The United States government releases a widely unread document: The Information Collection Budget of the United States. It’s like a Sludge Audit. Actually it IS a Sludge Audit.

A recent edition shows that the annual paperwork burden is in the vicinity of 10 billion hours. (10 billion hours! Monetize that, if you would.) It also breaks down that number by agencies.

That’s an opportunity. Without a ton of trouble, it should be possible to make strong efforts to see where paperwork burdens are least justified, and to take steps to take those burdens away. Without a lot of trouble, it should be possible to create a process to reduce that 10 billion hour number — for example, by directing agencies to produce serious reduction plans, with clear goals, in the next three months.

Let’s get the states involved too. (All hands on deck.) If we’re trying to reduce time taxes, there’s no time like the present.